Cost and Fee Allocation in Finland

Abstract

This report provides an overview of the main features of Finland’s rules on cost and fee allocation in civil procedure. As a general rule, Finland implements a loser-pays system in which both court costs and attorney’s fees are shifted, subject to the requirements of reasonableness and necessity. This report will also describe a number of exceptions to the general rule that are related to the nature of the case, actions of the parties, and equity. Despite an extensive public legal aid system in Finland, the risk of bearing an opponent’s legal costs may in many cases create a barrier to access to justice, and may explain the high degree of settlement in the country.