Right to request arbitration proceedings was lost

After the termination a distribution agreement that contained an arbitration clause, one of the parties filed a writ of summons contending that the other party was liable for damages. The Conciliation Board had discontinued the proceedings in accordance with section 6-11 subsection 1 of the Dispute Act. The Supreme Court, having conducted an oral hearing, found like the previous instances that the case should proceed despite the arbitration clause, see section 7 of the Arbitration Act. The Court considered this provision also to apply to the Conciliation Board, and that a request for rejection must be justified in the arbitration clause in order to succeed - a condition that was not met. It was also clarified that an unfounded rejection of the submitted claim is sufficient to be considered to have addressed the merits of the case. The appeal against the Court of Appeal's order was dismissed.

Read the whole order (Norwegian only)

Area of law: Section 7 of the Arbitration Act.

Key paragraphs: 35, 46, 61

Justices: Matheson, Noer, Thyness, Stenvik, Elsheim