The owner of an energy well and the well drilling company are liable for damages for structural damage to a neighbouring house

After the drilling of an energy well, extensive structural damage occurred on a neighbouring property. The parties in the Supreme Court agreed that the drilling was the cause of the damage. The Supreme Court found that liability under Section 9 of the Neighbours Act is triggered when the measure results in damage that is unreasonable or unnecessary for the injured neighbour to endure, even if the party having implemented the measure is not subjectively to blame. In its individual assessment, the Court found it clear that the result of the well drilling was unreasonable, which meant that the tolerance limit in section 2 of the Neighbours Act had been exceeded. The damage was not beyond what is foreseeable for well drilling in the relevant area, and the consequential damage was not so remote and unforeseeable that it precluded legal causation. The owner of the measure, the well drilling company and its insurance company were found jointly and severally liable for compensation for the neighbours' losses.

Read the whole judgment (Norwegian only)

Areas of law: The Neighbour Act, tort law

Key paragraphs: 45, 59, 61, 64, 69, 80–83

Justices: Webster, Bull, Falch, Thyness, Hellerslia