A claim for damages against a person residing in Cyprus may be brought in Norway

The case concerned whether Norwegian courts have territorial jurisdiction in a case brought by the State against a person residing in Cyprus. The defendant was a former owner of three companies registered in the United Kingdom. The State was claiming damages for the companies’ failure to pay Norwegian VAT.

The Court of Appeal held that the case could be brought in Norway. The Supreme Court concluded that the Court of Appeal’s decision was based on a correct interpretation of the jurisdictional provision in Article 5(3) of the Lugano Convention. The immediate and direct damage resulting from the failure to pay VAT occurred in Norway, and the case could therefore be brought before Norwegian courts. The Supreme Court rejected that there is a general rule requiring claims based on directors’ liability to be brought at the company’s place of business.

The decision provides guidance on the interpretation of Article 5(3) of the Lugano Convention.

Read the order (Norwegian only) (PDF)

Areas of law: Civil procedure. Jurisdiction.

Key paragraphs: 52 and 62

Justices: Øie, Bergsjø, Thyness, Steinsvik, Steen