NORWAY Law and Practice Contributed by: Andreas Stang Lund, Per Conradi Andersen, Alexander Daae and Emilie Wilberg, Kvale Advokatfirma DA
3.5 Arbitral Institutions In Norway, most arbitrations are conducted on an ad hoc basis, rather than under the auspices of arbitral institutions. Where institutional arbitration is used, the Oslo Chamber of Commerce is the primary domestic institution. In international matters, parties may also refer disputes to well-established institutions, such as the ICC or the Stockholm Chamber of Commerce. For shipping matters, NOMA is becoming more common. 3.6 Length of Proceedings Arbitral proceedings are typically relatively efficient, with hearings often lasting around three to five days. There are notable exceptions to that timeframe – for example, in construction disputes. The overall dura- tion of proceedings will vary depending on the com- plexity of the case, but they are generally shorter than ordinary litigation, taking into consideration that a decision from the District Court may be appealed to the Appeal Court, and then possibly to the Supreme Court. 3.7 Regulation of Arbitration Arbitration in Norway is governed by the Norwe- gian Arbitration Act of 2004, which is based on the UNCITRAL Model Law (arbitration “ad hoc”). The Act provides a comprehensive framework for arbitration, including rules on arbitration agreements, the tribunal, procedure and awards. It should be noted that the nomination of arbitrators will normally be done by the parties in common. Norway is a party to the 1958 New York Convention, and foreign arbitral awards are generally recognised and enforced, subject to limited exceptions. The courts play a supportive and supervisory role, and the framework is generally considered arbitration-friendly, with strong emphasis on party autonomy and finality. 3.8 Court Powers The courts may assist arbitral proceedings by taking evidence upon request from the tribunal, including party testimony, witness testimony and other forms of evidence, such as written evidence. They may also grant interim relief in support of arbitration where appropriate.
the wrongful act or omission, and the loss for which compensation is sought.
3. Arbitration 3.1 Prevalence
Most disputes in Norway are resolved by the ordinary courts. However, arbitration is a well-established and commonly used mechanism in commercial matters. In particular, arbitration clauses are highly prevalent in share purchase agreements (SPAs), and most M&A disputes are resolved in arbitration. Arbitration is also frequently used in sectors such as energy, construc- tion and shipping, where parties typically favour con- fidentiality and specialist decision-makers. 3.2 Restrictions on Use of Arbitration Arbitration cannot be agreed between a consumer and a professional party prior to the dispute arising. More generally, arbitration is only permissible in matters over which the parties have full disposal. As a result of the latter restriction, certain categories of disputes are not arbitrable under Norwegian law, including, for example, matters relating to family law (such as cus- tody and visitation rights) and other issues involving public law considerations or rights that are not freely disposable by the parties. 3.3 Advantages of Arbitration The main advantages of arbitration are the ability to ensure the confidentiality of the proceedings and the award, and the parties’ autonomy to appoint arbitra- tors with relevant legal and commercial expertise. Please note that, under the Norwegian Arbitration Act, confidentiality must be specifically agreed. Arbitration is also often perceived as offering greater flexibility in terms of procedure and scheduling compared to court litigation. 3.4 Disadvantages of Arbitration The level of costs is the most commonly cited disad- vantage of arbitration, particularly in relation to smaller claims. In addition, the absence of a right of appeal on the merits may be seen as a drawback – for example, in complex or high-value disputes.
427 CHAMBERS.COM
Powered by FlippingBook