Dispute Resolution

Key Contacts: Magnus Nordøy Snellingen and Olav Fr. Perland

Companies are subject to requirements imposed by national and international authorities. They are also exposed to expectations from shareholders and contractual parties whose demands for professionalism are increasingly strict. Financial statements must be audited, anti-money laundering procedures must be implemented, data protection legislation must be followed and contracts must be reviewed and complied with to ensure the company’s best interests. In order to meet these expectations, consultancy services are purchased for billions of Norwegian kroner every year. The advisors are bound by firm professional liability anchored in the legislation and the contracts. Potential liability for compensation can become highly significant. Boards of directors and general managers are also subject to stict obligations under company legislation, with a statutory liability for damages. The trend of claims for damages from shareholders, bankruptcy estates, co-contractors or others is persistent and increasing, both in number and scope.

Professional liability and directors’ liability are often covered by insurance, both by national and international insurance companies. Wiersholm’s insurance team possess expertise and industry understanding accumulated from several decades of close cooperation with industry players, and are distinguished in international rankings for precisely this. Wiersholm does not work for any specific industry player exclusively, but for various clients, insurers and intermediaries.

With the firm’s interdisciplinary expertise and industry understanding in both liability and insurance, Wiersholm occupies an exceptional position. Wiersholm regularly assists in complex liability and insurance cases that demand specialised and interdisciplinary expertise in both liability and insurance. Wiersholm is not only leading-edge as an advisor for businesses, professional practitioners, board members and insurance companies ahead of lawsuits, but has also conducted some of Norway’s most significant liability cases before the courts, and has assisted in disputes that have found their resolution through out-of-court settlements or court settlements.

Key Contacts: Christel Søreide and Jan Fougner

Employment law disputes that end up in court, including the Supreme Court and the Labour Court, constitute a priority for Wiersholm’s employment law practice. A considerable share of all cases before the courts concerns employment law. The development in the last couple of years shows that these cases are growing increasingly complex. Wiersholm assists businesses in all types of legal disputes. Excellent legal craftsmanship and results do nevertheless require more than legal expertise. Employment law cases tend to be tough for everyone involved. We put an extra effort into understanding the business’ priorities and into close cooperation with the client in order to enhance everyone’s strengths, ensure a sensible process and a strategy that puts reconciliation first.

In addition, Wiersholm can boast interdisciplinary pension expertise and extensive experience in assisting different players in the pensions field. Pension represents great value for pension suppliers, employers and employees, and it is subject to a series of different regulations. Wiersholm takes on a broad spectrum of disputes related to pension, including disputes between businesses and employees regarding changes to pension schemes, calculations of pensionable income, regulation of pension, individual pension agreements and back payment claims.

Key Contacts: Georg Abusdal Engebretsen and Jan Fougner

Sustainability is increasingly becoming a success factor for businesses in Norway and worldwide. The green shift is driven forward by regulatory efforts in interaction with commercial initiatives, which makes it a field that is not only of the utmost importance, but also highly complex. The field is constantly and rapidly evolving, whether it is in terms of climate and environmental requirements, human rights or other areas of ESG. There is an ongoing shift from “soft law” to “hard law”, and sustainability matters more and more frequently end up in court. Norway has already had its first climate case against the authorities, and internationally claimants are turning against private players such as financial institutions and businesses. Our experts deal with these matters daily, they know the field inside out, including the latest developments, and assist both the business community and the public sector. This is crucial to be able to handle disputes in the best possible way, and to plan an effective and well-suited dispute resolution strategy. We have litigated a number of cases before the courts in the field of human rights, including before the Supreme Court, and we have assisted in a series of climate and environment-related disputes.

Key Contacts: Georg Abusdal Engebretsen and Jan Fougner

The stakes are often very high when it comes to disputes in the compliance field, both commercially and reputation-wise. These disputes may involve anti-corruption, anti-money laundering, sanctions / export control, environmental law, human rights, corporate criminal liability, etc. The resolution of such disputes demand vast legal and strategic insights, and it takes relevant and up-to-date experience in an area of law that is developing rapidly. Our experts daily provides assistance in this field, and have a thorough knowledge of national and international regulations. They know the best corporate practices, as well as the requirements set by the supervisory bodies and the authorities for the prevention and handling of breaches of these regulations. This insight is crucial to be able to handle disputes in the best possible way, and to plan an effective and well-suited dispute resolution strategy. We have assisted both the authorities and private players in a vast array of disputes, both before and out of the courts, and know what it takes to find appropriate solutions and achieve the best possible results.

Key Contacts: Ronny Lund and Hans Augun Parmann

The field of commercial property affects many different areas of law, from company law, tenancy law, and ground lease law, to planning and building law, and it involves both public authorities and private players. Hence, real estate disputes may be extremely heterogeneous, and they require broad as well as specialised legal expertise. Wiersholm’s team possess thorough knowledge of the industry, combined with commercial understanding of commercial property, and have specialised expertise in all relevant fields. Wiersholm has extensive litigation experience before the courts in cases involving real estate, notably interpretation of tenancy agreements and ground lease agreements, expropriation appraisement, planning and building law issues, etc.

Key Contacts: Ronny Lund and Hans Augun Parmann

Construction projects tend to be complex in that they frequently involve technically complicated solutions and great value, and that they involve a number of players that have to work together for a long period of time (client, contractor and subcontractors, suppliers, etc.). Even in the case of detailed construction contracts, conflicts may arise in relation to how the contract should be interpreted, any changes, final settlements, defects, etc. The Norwegian construction industry is generally characterised by a high level of conflict, and for the majority of construction contracts, some form of conflict negotiation will become necessary at some point.

Wiersholm’s team has extensive experience in the prevention of construction disputes, for example by assisting in the drafting contracts and providing advice on various issues during the project, both to the contractor and the client. However, once the conflict becomes a fact, Wiersholm has extensive experience with various dispute resolution mechanisms, such as expert/umpire processes, judicial and extrajudicial mediation, arbitration and court proceedings at all levels. Wiersholm always focuses on efficient dispute resolution, out-of-court if possible, but has considerable litigation experience should arbitration and legal proceedings become necessary.

Key Contacts: Stephan L. Jervell and Helge Morten Svarva

Disputes in the hydropower sector vary in nature. For instance, they may concern the licensing authority’s determination of condition (licence fees and yield of power due to concession conditions etc.), disagreements between landowners and power companies regarding the value of waterfall rights, contractual disagreemeents about the ownership of waterfalls, compensation for increased water flow due to regulation of the water by a waterfall owner, etc. Wiersholm has extensive experience in disputes in the hydropower sector and has assisted public authorities, power companies and in some cases landowners in such disputes.

When the State or a municipality, by expropriation or under threat of expropriation, aquires land planned or suitable for development, the compensation, whether by amicable agreement or discretionary assessment, is as a rule determined based on the market value. If the owner is a land developer, compensation based on market value will not provide full compensation in accordance with section 105 of the Norwegian Constitution. Full compensation in these cases must include the development gain (the land’s utility value), which may be as large as the land’s market value. If an amicable agreement on advance possession has been conluded, a dispute may arise regarding the relationship between section 10 regarding the date of the valuation (the accession) and the principle in sections 5 and 6 that changes in value due to the expropriation measure must be disregarded. Disregarding the expropriation measure, in many cases there would have been a development of the planning work for the land that would have increased both the market and utility value. Wiersholm has represented several land developers in the negotiation of amicable agreements and judicial discretion to determine the compensation.

Key Contacts: Georg Abusdal Engebretsen and Jan Fougner

Aquaculture is an industry strictly regulated by a number of national and international requirements and constraints. This may be conducive to disputes both between different private players and with the authorities. We have extensive experience in assisting clients in various types of disputes, with the environmental authorities, local authorities, neighbours, suppliers, etc., both nationally and internationally. Furthermore, the industry is at the heart of legal, political and technological developments, including questions about taxation, new environmental requirements and other issues. All of this requires good, broad and up-to-date industry knowledge. Our experts have this, and this is the prerequisite for finding best possible strategy for and solution to any dispute.

Key Contacts: Anne Marie Sejersted and Rune Opdahl

IPR disputes are often of great commercial or fundamental importance. Typically, they concern whether a company can protect and/or must cease all or part of its production, provision of services, trade or marketing. IPR matters may also typically relate to different parts of intellectual property law in one and the same matter, e.g. both trademark law and marketing law. A broad specialisation in this area of law is essential to be able to handle these cases in the best possible way and develop a good and effective strategy. Moreover, these matters, especially patent matters, may raise technically complex issues, which requires the ability and interest to familiarise oneself with new disciplines, and close collaboration with clients and experts. In the field of media and culture, there will often be aspects related to freedom of expression, the role of the media, or the relationship with individuals/companies, which requires an understanding of the industry and of a number of important and fundamental principles. Wiersholm’s team has extensive experience with different types of IPR disputes, and we have had excellent results in the disputes we have handled.

Key Contacts: Magnus Hellesylt and Odin Breidvik

IT is crucial for the proper functioning of public and private enterprises. The introduction of new IT solutions through outsourcing or development contracts is often linked to changes in the customer’s organisation and business processes. A lot can go wrong along the way. The supplier may fail to fulfil its obligations, but circumstances on the customer side may also contribute to project failure. These include internal resistance to changes in working methods and pressure to expand the functionality of the agreed solution (“scope creep”). Dealing with such disputes requires both a good understanding of the contract and technical insight. But equally important is the ability to understand motives and forces that influence the project. In the event of litiation, the lawyer must tell a compelling and credible story about the breakdown of a relationship, and that story must be to the client’s advantage. This is as much about people as it is about technology.

We primarily wish to assist our clients in avoiding litigation and, together with the opposing party, find a basis for continued co-operation. If this does not succeed, our job is to win in court. A case in point: In the Grindgut matter for IBM, Wiersholm’s team succeeded in refuting the opposing party’s cancellation claim, while our client was awarded more than NOK 370 milion in payment for services, damages, litigation costs and default interest.

Key Contacts: Stephan L. Jervell and Elisabeth Lian Haugsdal

Historically, competition law has been characterised by lawsuits regarding the validity of infringement penalties in cases where market players have been heavily fined by the Norwegian Competition Authority. Players that are thus fined may as a first step file a complaint with the Competition Complaints Board, and possibly bring action against the Board’s decision. The key issue in such lawsuits is whether the parties have entered into an unlawful collaboration in violation of section 10 of the Competition Act or abused a dominant position in the market in violation of section 11 of the Competition Act. Wiersholm has conducted many such cases before the courts, including two out of four cases before the Supreme Court. Furthermore, two new forms of lawsuits have emerged recently: First, the parties to a merger or an acquisition may challenge a decision by the competition authorities if they stop the merger/acquisition. This was what happened in the so-called Schibsted/Finn/Nettbil case where Gulating Court of Appeal set aside the competition authorities’ decision that the acquisition of Nettbil had to be reversed. This case will be heard by the Supreme Court in January 2023, and Wiersholm represents Schibsted.

In recent years, we have also seen claims for damages directed at players alleged to have violated the competition rules. The so-called truck cartel matter, in which Posten and Diplom-Is are claiming damages from trucking companies, is an example of this, as well as the Sektor/Verisure matter, in which alarm customers claim damages from the alarm companies because of an alleged illegal price collaboration. In the latter matter – which is a class action –the Supreme Court is now to determine whether the case may be handled as a class action. Wiersholm acts as counsel for the alleged liable partes in both matters.

Key Contacts: Olav Fr. Perland and Thomas G. Naalsund

M&A disputes often involve complex agreements and significant value. Successful completion of such processes requires an in-depth understanding of the dynamics of a transaction process, the commercial considerations underlying the transaction and – not least – the principles business valuation. The emergence of W&I insurances of the seller’s liability often adds an additional dimension to the matters, both legally and practically. Wiersholm has represented buyers as well as sellers and insurers in a number of such disputes, and we know what it takes to achieve results.

Key Contacts: Morten Goller, Thomas G. Naalsund and Stephan L. Jervell

The public sector purchases goods and services worth more than NOK 600 billion annually. The huge sums at stake – and the comprehensive and dynamic regulatory framework that is challening to maneuver – give rise to a number of disputes between the public sector and suppliers.

Dispute resolution is a central and integral part of Wiersholm’s public procurement practice. The disputes often concern whether the contract has been awarded to the right supplier, but may also relate to whether the way in which a competition has been organised is in line with the regulations or the lawfulness of changes to existing contracts. We assist both national and international clients with out-of-court complaint processes, cases before the Norwegian Complaints Board for Public Procurement, lawsuits to stop the conclusion of a contract (interlocutory injunction), and lawsuits involving claims for damages or other procurement law sanctions for violations of the regulations. Proper handling requires a combination of legal expertise, industry knowledge, litigation experience and a strategic approach to how the case should be organised to achieve the best possible result – qualities and experience that Wiersholm’s team possesses. Wiersholm conducts a number of procurement cases before the courts every year, and is often involved in matters of a fundamental nature that reach the higher courts.

Key Contacts: Thomas G. Naalsund and Stephan L. Jervell

Disputes in the oil and gas industry are characterised by large sums and complex factual and legal issues. Both contract types and the regulatory framework are unique to the oil and gas industry, and the handling of disputes therefore requires in-depth knowledge and experience from the industry.

Typical disputes in the oil and gas sector may include connection agreements between host and user fields, unitisation agreements between fields, and other collaboration agreements between groups of licensees, as well as cost allocation between operators and participants in accordance with standard accounting agreements. The validity of government decisions is also sometimes an issue.

Other typical oil and gas disputes are related to the sale of petroleum, e.g. price adjustments in long-term gas sales contracts. In addition, there are disputes related to various manufacturing and service agreements.

Wiersholm has represented oil and gas companies and the authorities in a number of disputes related to contract law and regulatory matters in the oil and gas industry. We always ensure that the dispute team possesses cutting-edge expertise in litigation and dispute resolution as well as in oil and gas.

Key Contacts: Karl Even Rygh

The shipping industry is a distinctly international industry in which commercial and technical operations are often outsourced to specialised companies. Norwegian shipping companies, underwriters and classification societies hold a world leading position . Ships, the key assets in the industry, are valuable, advanced and exposed to risk. An increasing focus on the environment and sustainability means that the industry is facing a major restructuring process, which in recent years has led to significant technical and regulatory developments.

To handle the disputes that arise in this context, our team combines legal expertise with an understanding of the commercial and technical aspects of the industry. The ability to quickly see the big picture is crucial for our clients to achieve their goals in an efficient manner. Our lawyers have handled many of the largest and most demanding matters in the industry, and have played a leading role in the development of the Nordic Offshore & Maritime Arbitration Association.

Key Contacts: Andreas Bullen, Bettina Banoun og Nicolay Vold

Tax disputes have always an important part of Wiersholm’s tax practice. We assist our clients in administrative tax disputes, as well as in tax matters before the courts. Every year, our tax lawyers litigate a significant amount of matters before the courts, be it district courts, courts of appeal or the Supreme Court. Three of our tax partners are authorised to appear before the Supreme Court, and two of our tax partners have litgated tax cases before the EFTA Court.

We continually focus on the strategic aspects of the matter, including whether the matter should be pursued at all, which claims should and should not be made, the need to provide information and documentation to support tax law claims, etc. The members of the tax team are excellent tax lawyers. Two of our tax partners (Andreas Bullen and Bettina Banoun) hold doctorates in tax law.