NORWAY Law and Practice Contributed by: Knud Jacob Knudsen, Jenny Sandvig, Oda Lauksund Engamo and Nicholas Foss Barbantonis, Advokatfirmaet Simonsen Vogt Wiig
aside, and a court of appeal may decide that the further hearing of the case after the appealed ruling is set aside shall take place before a dif- ferent court. If the appeal concerns the content of the deci- sion and succeeds, the appellant court shall make a new decision on the merits of the case, if it has sufficient grounds for doing so. Appealed decisions that are set aside are usually referred to the lower court that made the decision for rehearing. 11. Costs 11.1 Responsibility for Paying the Costs of Litigation The parties are responsible for paying their own expenses in relation to the court case, includ- ing attorney’s fees, unless otherwise agreed or specified by law. Court fees are normally borne by the party who has requested/initiated the court case – ie, the plaintiff. The winning party in a court case is entitled to full compensation for their legal costs from the losing party. The Dis- pute Act also allows for the full or partial award of legal costs to a party who has prevailed on material points of the case without winning the case in its entirety. A party can recover all costs that were neces- sary, considering the significance of the case. A court of appeal can review decisions on the award of costs made by lower courts, both through an appeal of the case as such and by appeal specifically over the decision on costs. 11.2 Factors Considered When Awarding Costs When awarding costs, the courts mainly assess whether and to what extent a party has won
the case. The courts can also partially or in full exempt a party from liability for the other party’s legal costs based on a fairness assessment, considering, inter alia, whether there was good reason to have the case tried, whether the win- ning party can be blamed for bringing the case to trial and/or whether the balance of power between the parties warrants an exemption. 11.3 Interest Awarded on Costs An award of costs usually falls due two weeks from the service of the judgment. If a party fails to reimburse the other party within that time, default interest can be awarded, which is set biannually to a fixed percentage annual interest rate. 12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country The majority of civil disputes in Norway are set- tled through alternative dispute resolution, and dispute legislation has increased the focus on alternatives to traditional court proceedings. The most common method for resolving a dispute out of court is through a settlement between the parties. 12.2 ADR Within the Legal System The Dispute Act establishes an obligation for the parties to try to resolve the dispute amica- bly before filing a lawsuit, and court mediation is a standard mechanism at all district courts and courts of appeal. The prevailing party in a court case is normally entitled to full compensation of their costs. However, if the prevailing party has previously rejected a reasonable settlement offer from the other party, this can form the basis for exempting the losing party from liability for the prevailing party’s costs.
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