Dispute resolution has a lot in common with long-distance endurance sports, such as that fixture of Finnish athletics, the 50-kilometre cross-country skiing event. Case in point, a dispute that we were handling that had its start in the 2008 financial crisis didn’t receive a final judgment until last year.
4.3.2021
Contractual Risks Materialise as Disputes
Anders Forss & Marko Hentunen
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The number of disputes is on the rise again. The COVID-19 pandemic in particular has caused companies to encounter unforeseen and rapidly emerging risks. At the same time, Brexit, climate change, digitalisation, sustainability requirements and the general increase in regulation also breed conflict.
While these are not all novel phenomena, their legal impacts remain uncertain. That said, it is also true that few contractual disputes are entirely unforeseen, as some level of risk-taking is inherent in commercial transactions.
Risks can be minimised through careful contract drafting. The COVID-19 pandemic has moved the spotlight of force majeure clauses from more traditional topics, such as natural disasters, to infectious diseases. It has also highlighted how important it is to agree in as much detail as possible on what kinds of circumstances may release a party from performance under the agreement at hand.
Other uncertainties, such as the legal impacts of Brexit can be mitigated by studying the legal instruments replacing the UK’s and EU’s regulations concerning conflict of laws and the recognition and enforcement of judgments.
Disputes arising out of climate change and regulatory reforms will be resolved over the coming years in both national courts and international arbitration proceedings. In this context, it could be noted that Finland has a comprehensive portfolio of investment treaties. These treaties guarantee investors fair and equitable treatment by the signatory countries and could entitle investors to compensation, for example, if a country alters its regulatory framework in an unforeseeable and discriminatory manner.
Companies will continue to be subject to an increasing number of changes and unforeseen circumstances. Most of the disputes arising from the risks and consequences of the COVID-19 pandemic still remain ahead of us.
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Latest references
Finnish building company – Settlement of large-scale construction dispute
We successfully represented a major Finnish construction company in a dispute and settlement negotiations concerning a large construction project. The dispute mainly concerned liabilities for additional and change works as well as project delays, and the value of the claims of the parties was approximately EUR 50 million. If the case had not been settled, it would have been one of the largest construction disputes ever tried in the Finnish courts. The projected number of hearing days was unprecedentedly more than 300 days. To find an amicable solution to the extensive dispute, the parties engaged in settlement negotiations and court mediation. Eventually, the parties reached an amicable settlement to the full satisfaction of our client and thus the parties avoided the costs and risks of an extensive trial.
Case published 7.2.2024
Meyer Turku and Meyer Werft – Meyer shipyards awarded compensation and damages in a criminal case concerning copyright and trade secret infringement
We successfully acted for Meyer Turku Oy and Meyer Werft GmbH & Co. KG in an extensive criminal case, from the very beginning of the internal investigation to the court’s decision. The case centred around a person having made unauthorised copies of thousands of files containing Meyer-proprietary information and providing consulting services to a competing Chinese shipyard. The District Court handed down its judgement in October 2023, holding that the offender’s actions constituted criminal copyright and trade secret infringement as well as industrial espionage. The court furthermore held that the offender’s actions could be attributed to a limited liability company he had set up. The court ordered the company to pay Meyer EUR 5 million in compensation for the infringement and also awarded Meyer damages for its expenses. The court thus accepted Meyer’s claims in full. The matter is an exceptionally extensive and significant case on criminal trade secret and copyright infringement. Meyer Turku and Meyer Werft are among the largest and most modern shipyards in the world. Luxury cruise ships built by Meyer are internationally known for their cutting-edge technology and innovativeness. Outset In 2018, Meyer received indications that certain Meyer-proprietary files might have been copied from its systems unlawfully. An extensive internal investigation revealed that that a person had copied a significant number of files containing information protected under both copyright and trade secret laws. The offender had also set up a limited liability company and, in the summer of 2018, entered into a service agreement with a Chinese shipyard. Under the agreement, the offender was to provide consulting services relating to new innovation and technology to the Chinese shipyard. The offender and his company also received significant payments from the Chinese shipyard. After the internal investigation, a police report was filed in the late summer of 2018. In addition, the offender’s property was confiscated for security. Criminal charges were filed, and Meyer presented its claims for compensation and damages as a complainant. Results The District Court agreed with Meyer and the prosecution that the offender’s actions met all the elements of criminal copyright and trade secret infringement as well as of industrial espionage. The court held that the offender’s actions constituted infringement of Meyer’s copyrights and its neighbouring database and catalogue rights under the Finnish Copyright Act and that all the elements of criminal trade secret infringement and industrial espionage, as defined in Finnish law, were met. The court also held that the offender’s actions could be attributed to the limited liability company he had set up. The court ordered the company to pay Meyer EUR 5 million in compensation for the copyright and trade secret infringements. The court also awarded Meyer damages and legal costs as claimed. The court thus accepted Meyer’s claims in full. This decision is noteworthy for the protection of the European shipbuilding industry’s know-how in general. The judgement is final.
Case published 18.10.2023
Energy company – Dispute arising from an energy supply agreement
We represent a major energy company in arbitration. The dispute has arisen out of a long-term energy supply agreement and the value of the claims is approximately EUR 33 million.
Case published 19.9.2023
Global engineering and manufacturing company – Contract dispute
We advise a global engineering and manufacturing company in a contract dispute. The dispute concerns the cancellations of several agreements relating to the procurement. The total value of the claims is close to EUR 400 million.
Case published 18.7.2023