Advocate from a firm engaged by a party was not disqualified from serving as an arbitrator

Mo Industripark AS is a property and infrastructure company located in Mo i Rana. A dispute arose among the shareholders regarding a capital increase. The matter was resolved through an arbitration award in February 2023. Two of the shareholders brought an action before Helgeland District Court, seeking annulment of the arbitration award. They argued that one of the arbitrators was disqualified because he was an advocate and partner in a law firm that had been engaged by one of the parties during the course of the arbitration proceedings.

Helgeland District Court found that the advocate was not disqualified as an arbitrator and upheld the arbitration award. Hålogaland Court of Appeal reached the same conclusion, although there was dissent regarding the issue of disqualification.

The Supreme Court concluded that the advocate was not disqualified from serving as an arbitrator, emphasising that the assignment for the party was insignificant in scope compared to the law firm’s overall activities. The assignment was unrelated to the arbitration case and concerned a different area of law. The advocate who served as arbitrator had not been involved in the assignment, which was handled by another department within the firm. Although the advocate held a central role in the firm, he could not, based on an overall assessment, be considered disqualified.

The ruling provides guidance on what constitutes disqualification under section 14 of the Arbitration Act and which factors should be taken into account.

Read the judgment from the Supreme Court (Norwegian only) (PDF)

Area of law: Arbitration

Key paragraphs: 47, 55–57, 63, 65–68, 73

Justices: Øie, Falch, Steinsvik, Sæther, Sivertsen