Advocate from a law firm engaged by one of the parties was not disqualified from serving as an arbitrator

Mo Industripark AS is a property and infrastructure company based in Mo i Rana. A shareholder dispute arose concerning a capital increase. The matter was resolved through an arbitration award in February 2023. Two of the shareholders brought an action in Helgeland District Court, challenging the validity of the arbitration award. They argued that one of the arbitrators was disqualified due to a conflict of interest, since 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 from serving 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, emphasising that the assignment for the party was insignificant in scope in relation to the law firm’s overall operations. The assignment was unrelated to the arbitration case and concerned a different area of law. The advocate who served as an arbitrator had not been involved in the assignment, which was handled within a different department. 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 (PDF)

Area of law: Arbitration

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

Justices: Øie, Falch, Steinsvik, Sæther, Sivertsen