Finland updates

Insolvency & Restructuring

Contributed by HPP Attorneys Ltd
Differing tax issues between bankruptcy estate and creditors
  • Finland
  • March 16 2018

The tax issues of a bankruptcy estate and the creditors differ depending on whether the bankruptcy estate continues the previous business of the debtor company. The effects of a debtor's bankruptcy on the creditor's taxation may be particularly significant where the creditor is a lessor to the debtor. Pursuant to legislation, a bankruptcy estate is, in principle, entitled to choose whether to conduct activity liable to value added tax provided that it does not continue the debtor's business.

Amendment of restructuring programme – unclear and unknown debts
  • Finland
  • December 23 2016

A court-approved restructuring programme can be amended only if the preconditions of the Restructuring of Enterprises Act are met. Generally, the contents of an approved programme may be amended with the acceptance of all the creditors whose rights would be violated by an amendment. However, the precondition of the debtors' acceptance is problematic when the amount of a restructuring debt is determined to be substantially more than that originally entered into the restructuring programme.

Bankruptcy estate's liability for maintenance charges
  • Finland
  • May 27 2016

The Supreme Court recently set a precedent regarding the liabilities of a bankruptcy estate in a case that concerned maintenance charges of a limited liability golf company. The legal question subject to the precedent was whether the maintenance charge receivables of the golf company in connection with the golf company's shares were liabilities of the bankruptcy estate.

Validity of retention of title in bankruptcy
  • Finland
  • October 30 2015

Retention of title can be based on either a separate condition in a sales agreement or a specific agreement referred to in the Hire-Purchase Act. A retention of title clause may be used to ensure the seller's rights in circumstances where the seller has no other form of security against the buyer's insolvency. However, it should be drafted carefully to ensure that it remains effective in the event of the buyer's bankruptcy.

Security value of floating charge in restructuring – recent precedents
  • Finland
  • February 27 2015

The Supreme Court recently issued two precedent rulings on how the value of assets that are subject to a floating charge should be determined in restructuring proceedings, holding that the assets were to be valued at their liquidation value. The rulings are expected to have an impact on the stance of financial institutions towards floating charges and their valuation.


Insurance

New insurance claim based on same traffic accident not time barred
  • Finland
  • July 04 2017

In 2006 a claim was filed pertaining to a traffic accident in which the claimant had fallen off a moped and suffered a severe brain injury. The insurer rejected the claim in 2007. In 2011 the claimant discovered that the brain injury had caused permanent incapacity and a new insurance claim was filed, which the insurer rejected. The Supreme Court recently had to consider whether the exacerbation of damage starts a new period for a claim if it has already become time barred.

New Motor Liability Insurance Act enters into force
  • Finland
  • February 28 2017

The new Motor Liability Insurance Act recently entered into force. The previous act dated from 1959 and required complete reform and modernisation to respond to existing and future needs. The new act is structured to follow the typical chronology of the underwriting and claims handling process and aims to promote competition by giving the insurance industry the opportunity to develop new products. This appears to be succeeding, as insurers have already launched new products.

Validity of legal expenses insurance
  • Finland
  • December 20 2016

The validity of legal expenses insurance can be problematic when ending business activities. A pharmacist terminated his legal expenses insurance after he retired and ended his business activities. Some time later he received a workers' compensation claim from a former employee. The pharmacist believed that the insurance would cover the matter, but the insurer rejected the claim because the event had occurred after the validity of the insurance.

Insurer's right to terminate cancer insurance
  • Finland
  • August 23 2016

The Financial Ombudsman Bureau recently issued a number of recommendations pertaining to insurers' rights to terminate cancer insurance policies, following on from its 2014 recommendations pertaining to the amendment of cancer insurance premiums and conditions. The recommendations reiterate that insurers cannot amend insurance contracts or terminate unprofitable contracts unless they draft the conditions carefully at the outset and fulfil their duty to inform.


Intellectual Property

Reputation parasitism: functioning concept or failed attempt?
  • Finland
  • August 29 2016

'Reputation parasitism' refers to the exploitation of a competitor's goodwill in marketing, where consumers are not misled regarding a product's commercial origin. Reputation parasitism is often used as secondary grounds for action in Market Court litigation. However, it remains difficult to convince the court that goodwill has been exploited when consumers have not been misled about a product's commercial origin.

Reform of Finnish domain name regime
  • Finland
  • July 04 2016

Legislation concerning '.fi' country code top-level domain names will soon undergo significant amendments, as the Domain Name Act is set to be repealed. Changes include the abolishment of local presence requirements and the adoption of the registry-registrar model. Overall, the reform represents a welcome change; however, it may lead to an increased risk of cybersquatting and domain name parking.


Shipping & Transport

Contributed by HPP Attorneys Ltd
Parliament approves second stage of Transport Code
  • Finland
  • May 09 2018

The Transport Code (formally the Act on Transport Services) is one of the government's key initiatives. The code's main purpose is to create a growth environment for business digitalisation and promote transport business by deregulation. The code will reform the regulation of all transport modes, so that the regulation itself will not become an obstacle to digitalisation, automation and new innovations.

Supreme Court dismisses fairway dues claims
  • Finland
  • January 31 2018

Fairway dues have been a much-discussed issue in Finland for years. The controversy began in 2000 when the Finnish authorities began suspecting that ships which regularly entered and departed Finnish waters did not fully comply with the technical requirements for vessels of the relevant ice class. The authorities subsequently began collecting fairway dues retroactively. This led shipping companies and their agents to file hundreds of appeals in the administrative courts.

Helsinki Appeal Court on carrier's liability for loss of pharmaceuticals
  • Finland
  • December 06 2017

Correct temperature is vital to maintaining the feasibility and effectiveness of pharmaceuticals throughout their lifecycle, including during carriage. Although various guidelines have been issued and express provisions have been included in transport agreements to maintain the cold chain, damage often occurs. The Helsinki Appeal Court recently considered whether the level of a carrier's liability should be agreed in advance and whether failure to maintain an agreed temperature should constitute gross negligence.

Taxi licence required for driving Uber passengers
  • Finland
  • September 27 2017

The Supreme Court recently issued a much-awaited decision and upheld a Court of Appeal decision involving Uber passenger rides. The Supreme Court ruled that to provide an Uber service a driver must have a taxi licence. It found a driver who had driven Uber passengers without such a licence guilty and imposed a €2,100 fine.

Supreme Court considers division of jurisdiction between maritime and general courts
  • Finland
  • August 16 2017

The Supreme Court recently found that the Maritime Code should have been applied in a personal injury case and that the Espoo District Court (as a general court) did not have subject-matter jurisdiction over the claim. The Supreme Court found that when determining which court has subject-matter jurisdiction, it is necessary to first investigate whether the provisions of the Maritime Code become applicable.


Current search

Refine search

Work area