Causality and economic loss in connection with directors' liability
Supreme Court judgment 5 May 2021, HR-2021-967-A, (case no. 20-164391SIV-HRET), civil case, appeal against judgment
A, B, C (Counsel Asbjørn Breistein) v. Landskapsentreprenørene AS (Counsel Leif Oscar Olsen)
Justices: Indreberg, Bull, Bergsjø, Falch, Høgetveit Berg
After bankruptcy proceedings had commenced in a company, a creditor who was sub-supplier in an ongoing contractual relationship, claimed damages from the company's board members, see section 17-1 of the Companies Act, cf. section 4-1 of the Compensatory Damages Act. The board members' negligence in failing to inform the creditor of the company's weak financial position had been decided with final effect by the Court of Appeal. The Supreme Court found that the creditor was entitled to damages for the increase of his claim from the time the negligence occurred and until the commencement of the bankruptcy proceedings. As the outstanding debt had been reduced during this period, the Supreme Court found in favour of the board members.