Norwegian Ruling Limits The Scope Of Arbitration Clauses In Relation To Third Parties

In its ruling of 15 April 2026, the Appeals Committee of the Norwegian Supreme Court (Høyesteretts ankeutvalg) held that an arbitration clause laid down in a contract could not be invoked against a third party. This applies even where the third party has close commercial or group ties to the contract.

The ruling thus underscores that arbitration cannot be invoked without a contractual basis. The decisive factor is thus not only whether the dispute is closely connected to a contract including an arbitration clause, but whether the party sought to be bound by the clause has agreed to arbitration or is otherwise bound by the arbitration agreement.

The matter of the guarantee

The case concerned a shipbuilding contract between Westcon Yards AS and Rimfrost Antarctic AS containing an arbitration clause. Westcon Yards AS’s rights and obligations under the contract were subsequently assigned to Westcon 39 AS, and Rimfrost Holding AS, the parent company of Rimfrost Antarctic AS, assumed