A condominium can bring an action for damages for defective common areas.

The board of a condominium in Sandefjord brought a action against the company that had developed the condominium's buildings, demanding rectification and compensation for defects in the common areas.

The developer company would not be able to pay if the action succeeded, so the condominium also sued the person who was both the sole director and general manager of the developer company. The condominium claimed that he was personally liable for the defects under the negligence rule in section 17-1 of the Companies Act. The issue in the Supreme Court was whether a condominium, through its board, can act as claimant – i.e. has the capacity to sue – in such cases where the claim is not based on a contract.

The Supreme Court concluded that the condominium can act as claimant, emphasising that the purpose of section 60 of the Condominium Act was to establish a practical arrangement where the board can bring claims to court for defects in the common areas. If this had not been possible, the lawsuit would have had to be filed by the individual unit owners. Therefore, the action could proceed to the District Court.

The ruling provides guidance on when the board of a condominium association can act as the claimant in cases where defects in the common areas are alleged.

Read the order from the Supreme Court (Norwegian only) (PDF)

Area of law: Civil procedure, property law, the Condominium Act

Key paragraphs: 34, 41, 44 og 45

Justices: Bull, Falch, Høgetveit Berg, Sæther, Lund