The validity of a development agreement
Supreme Court judgment 2 December 2021, HR-2021-2364-A, (case no. 21-010348SIV-HRET), civil case, appeal against judgment.
Sunnfjord municipality (Counsel Johannes Meyer-Myklestad) v. Bilskadesenteret Eigedom AS (Counsel Endre Grande)
Justices: Noer, Kallerud, Bergsjø, Arntzen, Høgetveit Berg
In a development agreement with the municipality, an undertaking had been granted exemption from the order provisions of the current zoning plan in exchange for paying a cash amount to partially cover the costs of road measures detailed in the agreement. These measures were not implemented within the stipulated time limit, and the amount paid was instead included in a larger package for the implementation of a number of municipal traffic measures. The Supreme Court's majority of four judges found like the previous instances that the municipality's reallocation of the amount paid constituted a breach of an implied condition for the payer. This condition was visible to the municipality. Consequently, the provision on cash contributions from the enterprise was invalid. The municipality was ordered to repay the amount. Dissent 4-1. Special note from one justice.