Claim for damages against the general manager of a craftsman company was time-barred

A consumer brought an action for damages for defectively executed works on a detached house against the general manager and chairman of the craftsman company that had carried out the works, see section 17-1 subsection 1 of the Companies Act. The company had then gone bankrupt. The defects were described in a complaint report from August 2017, while the case was raised in October 2020. The Supreme Court concluded that the claim for damages was time-barred, see section 9 subsection 1 of the Limitations Act. The builder had acquired the necessary knowledge of the deficiencies from the report of August 2017. Neither the consumer perspective nor the opening of bankruptcy proceedings could result in the limitation period starting to run at a later date. The same applied to the negotiations between the builder and the company regarding the possibilities for correcting the defects. There was also no basis for granting the builder a certain period of consultation before the limitation period began to run. The claim was therefore time-barred when the case was brought. The managing director and chairman of the board were not liable.

Read the whole judgment (Norwegian only)

Areas of law: Section 9 of the Limitation Act, section 17-1 of the Companies Act, the Craft Services Act. 

Key paragraphs: 40‒42, 48, 50‒51, 55‒56 og 62‒63

Justices: Øie, Matheson, Bull, Arntzen og kst. dommer Elsheim