A municipality may bring an action for damages against the State in a dispute over assistance obligations under the Child Welfare Act

A municipality brought an action against the State, seeking compensation for alleged loss resulting from the State’s failure to fulfil its duty to provide assistance under the Child Welfare Act. This duty entails that the State must, upon request from the municipality, secure a necessary institutional placement for a child when the municipality has decided on such placement as a voluntary assistance measure.

The State sought to have the claim dismissed on the ground that the conditions in section 1-3 of the Dispute Act were not met. This objection was unsuccessful in the Court of Appeal.

The Supreme Court held that the Court of Appeal had applied a correct interpretation of section 1-3 of the Dispute Act. Municipalities have traditionally been barred from bringing actions against the State challenging the validity of administrative decisions in cases where the municipality has participated in its capacity as a public authority. In such situations, the requirement of a sufficient connection under section 1-3 subsection 2 has not been considered fulfilled. However, this limitation does not apply where a municipality seeks compensation from the State for breach of the duty to provide assistance under the Child Welfare Act. The municipality’s action was therefore allowed to proceed.

The decision provides guidance on the connection requirement in section 1-3 of the Dispute Act in cases between municipalities and the State.

Read the order (Norwegian only) (PDF)

Area of law: Civil procedure. Section 1-3 of the Dispute Act 

Key paragraph: 60

Justices: Webster, Thyness, Steinsvik, Stenvik, Lund