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New Administrative Law in Norway – What Will Happen to Case Costs?

The Norwegian government has proposed limiting the right to recover case costs when an appeal is upheld. This proposal has sparked significant debate, as it could have serious implications for individuals seeking justice in administrative cases.

What Is Changing in the New Administrative Law?

The Norwegian Parliament (Stortinget) is currently reviewing a proposal for a new administrative law (Prop. 79 L (2024–2025)). The existing administrative law has been in place since the late 1960s, and an update is long overdue. While the proposed changes aim to make the law more accessible and easier to understand, not all aspects of the proposal are being welcomed.

One of the most contentious changes is the government’s plan to limit citizens’ right to recover case costs. Under the current law, individuals who successfully appeal a public authority’s decision are entitled to reimbursement for the necessary costs incurred during the appeal process. This includes legal fees, which are often essential for overturning erroneous decisions.

The proposed change would cap reimbursement at the rate set by the Legal Aid Act (NOK 1,315 per hour). This is significantly lower than the market rate for legal assistance, meaning individuals would likely only receive partial reimbursement for their actual costs.

Why Is This Problematic?

The current rule functions as a compensation mechanism, ensuring that individuals are not financially penalized for errors made by public authorities. It is only fair that the state or municipalities cover the costs arising from their mistakes.

If the proposed change is adopted, individuals will no longer be fully reimbursed for the legal costs necessary to correct an erroneous decision. Instead, they will only receive reimbursement up to the legal aid rate, which is often insufficient to cover the actual expenses.

This limitation could discourage individuals from exercising their right to appeal, as the financial risk may outweigh the potential benefits. Over time, this could result in fewer errors being corrected, ultimately weakening the legal protections available to private parties in their interactions with public authorities.

Impact on Legal Protections

The proposed limitation on case cost reimbursement has broader implications for legal protections in Norway. By reducing the financial responsibility of public authorities for their mistakes, the government risks undermining trust in the administrative system.

Key stakeholders, including the Norwegian Bar Association (Advokatforeningen) and the Confederation of Norwegian Enterprise (NHO), have voiced strong opposition to the proposal. They argue that it could erode individuals’ access to justice and weaken accountability within public administration.

As the debate continues, it remains to be seen how the Parliament will respond to these concerns.

What Does This Mean for You?

If you are involved in an administrative appeal, this proposed change could significantly impact your ability to recover legal costs. It is more important than ever to seek expert legal advice to navigate these challenges effectively.

At Hjort, we specialize in administrative law and are committed to protecting your rights. If you have questions about how these changes might affect you, don’t hesitate to contact us for guidance.

About the Author

Kristian Brandt is a partner and attorney at Hjort and serves as the chair of the Norwegian Bar Association’s Legislative Committee on Administrative Law. With extensive experience in administrative law, Kristian provides expert insights into the legal challenges facing individuals and businesses in Norway.