The law firm Kluge has been sentenced to pay NOK 112.9 million in compensation for negligent advice on helicopter agreements in the oil and gas industry.
The Borgarting Court of Appeal concluded that Sparebank 1 Finans Nord-Norge was not sufficiently warned against the risk related to helicopter insurance, newspaper Rett24 writes.
In 2013, the company bought a helicopter and leased it to CHC. The company purchased a residual value insurance, which didn’t apply in the case of CHC becoming insolvent. Kluge was involved in the process.
The fall in oil prices in 2014 and the Turøy accident in 2016 contributed to CHC becoming insolvent. Thus, Sparebank 1 Finans Nord-Norge was left with a helicopter they had to sell with a large loss.
Compensation reduced
The Court of Appeal concluded that the legal advice was deficient, but since the bank had also acted unjustifiably, the compensation was reduced by 25%.
With default interest from 2017, the sum will be just under NOK 155 million.
In 2019, Kluge was sentenced to pay NOK 75 million in compensation to Sparebank 1 SR-Bank in a similar case. The bank’s own negligence resulted in the compensation being reduced by 60%.
Source: © NTB Scanpix / #Norway Today / #NorwayTodayNews
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