Arbitration Legislation in the Kingdom of Norway

Those considering filing for arbitration in the Kingdom of Norway should keep in mind that the legal basis for arbitration in this country is laid down in the Law on Arbitration. It applies to resolving domestic & international disputes, notwithstanding the citizenship of the parties involved. 

So, let’s take a closer look at how disputes are resolved through arbitration in the Kingdom of Norway.

Based on UNCITRAL, the Law on Arbitration contains a number of provisions that aren’t included in UNCITRAL. However, when it comes to resolving commercial disputes, parties can reach a deal by applying certain provisions of UNCITRAL.

Settling a Dispute Through Arbitration in the Kingdom of Norway: Requirements

The Law on Arbitration contains only few provisions pertaining to arbitral proceedings. However, nearly all of them are mandatory & must be fulfilled by the parties. Under these provisions (which are the cornerstone of arbitration), ensuring fairness & impartiality of arbitral proceedings requires the treatment of parties on an equal footing. According to the Law, the parties are entitled to file an appeal & present their case during the course of an arbitration. Should they fail to adhere to the said provisions in their arbitration agreement, then the Law in Arbitration will apply to all subsequent proceedings pertaining to resolving a disputes through arbitration in the Kingdom of Norway.

Preparing an agreement requires parties to specify an applicable law which they can refer to in an arbitral tribunal. Under Norwegian legislation, the law selected by the parties & applicable to their business dealings must be applied by the arbitral tribunal as well. The parties should also specify which law will apply if a dispute arises. Should they fail to reach an agreement, Norwegian legislation contains specific provisions that will be applicable by default; however, it should be kept in mind that there no rules that apply to all disputes exist.

What if Parties Fail to Resolve a Dispute Through Arbitration in the Kingdom of Norway?

If it is impossible for the parties to settle their differences by reaching an agreement, the dispute cannot be referred to arbitration. A dispute cannot be resolved if a claim may not be satisfied without securing the consent of a 3rd party. Claims are deemed non-arbitral if a remedy sought can only be provided by a court or government. Here are the situations  in which it may happen:

• bankruptcy;
• taxation;
• patents;
• fines;
• company’s decision to terminate its operation;
• competitors’ actions;
• permits for purchasing enterprises.

Resolving Disputes Through Arbitration in the Kingdom of Norway: Selecting an Arbitrator

Under Norwegian legislation, arbitrators should possess appropriate qualifications & mustn’t be dependant on the parties. 

Typically, arbitral tribunals include 3 arbitrators all of whom must possess relevant legal credentials. It is common practice for parties to select 3 practicing attorneys; sometimes, they choose an academician, judge & practicing lawyer. 

Instituting Arbitration in the Kingdom of Norway

Arbitration is preceded by a notification of upcoming proceedings. It normally represents a letter containing details of the dispute, including a request for settling a dispute in Norwegian arbitration. 

Under Norwegian legislation, the parties can reach a deal whereby an arbitral award will not be disclosed. The deal can also cover a dispute & all further proceedings related to enforcement. If there are any 3rd parties wishing to attend the oral hearings, they can only do so after getting the parties’ consent. If a case involving annulment of arbitral awards is initiated in a common court, it won’t be possible to ensure its confidentiality because of the public nature of the hearings.