Claim under section 7-8 of the Satisfaction of Claims Act
Supreme Court judgment 4 May 2021, HR-2021-954-A, (case no. 20-127734SIV-HRET), civil case, appeal against judgment.
The bankruptcy estate of Moods Wholesale AS (Counsel Johnny Johansen) v. Barnas Hus Norge AS (Counsel Johannes Sundet)
Justices: Matningsdal, Falkanger, Ringnes, Arntzen, Bergh
After a consignment had been delivered to the buyer, but not paid, the seller went bankrupt. The bankruptcy estate then sold the remaining stock of the same type of goods to another buyer at strongly reduced prices. As a result, the first buyer had to sell the received goods at a loss. In the buyer's claim for damages against the bankruptcy estate, the Supreme Court found that the lost contribution margin caused by the sale at a loss could not be recovered under section 7-8 of the Satisfaction of Claims Act, and consequently could not be set off against the claim for payment of the goods. The majority of four justices found that liability under the provision is not based on the bankruptcy estate's conduct, but on the debtor's financial situation, and that liability is triggered by the commencement of bankruptcy proceedings. One justice arrived at the same conclusion, with different reasoning.