Legislator Case Law & Legislation
KKO 1301/1997 AI generated

Creditor in debt arrangement case must reimburse state for lawyer fees paid to debtor's counsel upon appeal rejection.

Case Number KKO 1301/1997
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Allowed / Granted

Legislator summary

AI generated

The Supreme Court ruled that a creditor in a debt arrangement proceeding must reimburse the state for legal fees paid to the debtor's counsel when the appeal is rejected. The creditor argued that the state's payment to the lawyer was a necessary procedural step, while the state contended that the creditor bears the ultimate cost of the debtor's legal representation. The court held that since the appeal failed, the state's expenditure was unjustified and must be recovered from the creditor who initiated the arrangement.

Legislator headnote

AI generated

MOL 21 § 1 mom; VJL 62 § 1 mom (57/93): When a creditor initiates a debt arrangement and the debtor's appeal is rejected, the creditor is liable to reimburse the state for legal fees advanced to the debtor's counsel by the lower court.

Keywords

AI generated
debt arrangement proceedings legal fee reimbursement state compensation claim creditor liability appeal rejection consequence

Cited Legislation

AI generated
MOL 21 § 1 mom
VJL 62 § 1 mom (57/93)
AI generated

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Full text

Kysymys siitä, oliko velkajärjestelyasiassa muutoksenhaun hävinnyt velkoja velvollinen korvaamaan valtiolle muutoksenhakemukseen vastanneen velallisen oikeudenkäyntiavustajalle hovioikeudessa maksetun palkkion.

MOL 21 § 1 mom

VJL 62 § 1 mom (57/93)