Danske Bank not liable after "CEO fraud"
Supreme Court judgment 31 May 2024, HR-2024-990-A, (case no. 23-101291SIV-HRET), civil case, appeal against Borgarting Court of Appeal's judgment.
I. Danske Bank (Counsel Olav Fredrik Perland), Finans Norge (intervener) (Counsel Henning Harborg) v. Edison international S.p.A. (Counsel Nils Christian Langtvedt) II. Edison international S.p.A. (Counsel Nils Christian Langtvedt) v. Danske Bank (Counsel Olav Fredrik Perland), Finans Norge (intervener) (Counsel Henning Harborg)
In 2019, the general manager of an energy company was deceived by external fraudsters into transferring approximately NOK 130 million from the company’s account in Danske Bank to two accounts in Hong Kong, allegedly for an acquisition in China. In the case concerning the company’s compensation claim against the bank, the Supreme Court, unlike previous instances, found that the general manager had the authority to instruct the payments, and that they had to be considered authorised. Unlike the previous instances, the Supreme Court also found that the bank was not liable for damages due to negligence. The bank had not breached its obligations under the agreement, nor any obligations under law, regulations, directives or industry standards, including the anti-money laundering rules, see section 35 of the Financial Contracts Act 1999 and section 4-30 of the Financial Contracts Act 2020.
Read the judgment from the Supreme Court (PDF)
Areas of law: Tort law. Section 35 of the Financial Contracts Act 1999, section 4-30 of the Financial Contracts Act 2020
Key paragraphs: 53-54, 74-75, 79, 83
Justices: Falkanger, Arntzen, Høgetveit Berg, Thyness, Stenvik