Municipalities that receive a compulsory fine cannot sue the State under section 3-1 of the Dispute Act

Rana municipality was imposed a compulsory fine because the County Governor found that it had failed in providing pupils a safe and good school environment. The municipality argued that there was no basis for a compulsory fine and brought an action against the State. The District Court refused to hear the case because a time limit in section 1-4 a of the Dispute Act on the right of action had expired, while the Court of Appeal allowed the case under section 1-3 of the Dispute Act, which contains no time limit. The State appealed against the Court of Appeal’s ruling to the Supreme Court.

The Supreme Court found that municipalities that receive compulsory fines under the Education and Research Act may bring an action against the State under section 1-4 a of the Dispute Act. Under this provision, there is a time limit of six months. The general rule on the right of action in section 1-3 of the Dispute Act did not apply. The Supreme Court emphasised that the municipality is part of a larger administrative apparatus under the Education and Research Act, where the municipality’s self-interest in the case cannot justify a right of action against the state under section 1-3 of the Dispute Act. The Court of Appeal’s ruling was therefore based on an incorrect interpretation of the law and was set aside.

The judgment provides guidance on municipalities’ right to bring an action against the State when they receive compulsory fines under the Education and Research Act

Read the order from the Supreme Court (Norwegian only) (pdf)

Area of law: Civil procedure law, sections 1-3 and 1-4 a of the Dispute Act

Key paragraphs: 55, 60-62

Justices: Indreberg, Falkanger, Høgetveit Berg, Sæther, Sivertsen