Lessor's right to coverage of repair costs

Justices: Webster, Bull, Bergsjø, Bergh, Sæbø

Leased office premises were to be completely rehabilitated following termination of the lease, so that the lessee's omission to leave the premises in the agreed condition did not represent any economic loss for the lessor. The Supreme Court found that the lessor could thus not claim compensation for necessary repair costs under section 10-3 subsection 2 of the Tenancy Act. A majority of three justices found that any claim under section 10-3 subsection 2 must be regarded as a claim for damages. The provision must thus be interpreted to mean that an economic loss must have been suffered, a condition that was not met in the present case. A minority of two justices found that the provision gives the lessor a right to compensation for the repair costs irrespective of whether the breach has caused a loss for the lessor, but that it must be interpreted restrictively, so that compensation cannot be claimed for repair costs in cases where such repair serves no reasonable purpose, as in the case at hand.