DENMARK Law and Practice Contributed by: Thomas Norvold, Søren Locher, Anne Mie Lund and Pawel Weigel, Fabritius Tengnagel & Heine
9. Damages and Judgment 9.1 Awards Available to the Successful Litigant The award available to a successful litigant will depend on the type of case and the claim presented before the court. A successful litigant will obtain an award that corre- sponds to the presented claim, if such a claim is within the scope of the types of claims that can be made according to the law. • Monetary claims: a successful litigant will receive a judgment in which a monetary claim is established and can be enforced through the enforcement court. • Recognition claims: a successful litigant will receive a judgment in which the court determines the actual circumstances or interpretation of law. Such a judgment can most often not be enforced through the enforcement court, but a party can incur liability if it acts contrary to what has been determined. • Prohibition/injunctions claims: a successful litigant will receive a judgment whereby the opposing party must take action or refrain from taking a specific action. • Claims demanding freeze of funds: a successful litigant will receive a judgment according to which the opposing party’s assets are frozen. 9.2 Rules Regarding Damages In Danish law, general liability for damages is not regu- lated by legislation but can instead be inferred from legal precedent. The following conditions must be met to establish liability for damages: • there must be damage that has affected someone other than the wrongdoer; • there must be a basis for liability – the wrongdoer must have engaged in conduct that incurs liability; • there must be a causal connection between the wrongdoer’s actions and the damage incurred; • the damage must be adequate;
• there must be no grounds for exemption from liability; and • there must be a financial loss. The damages are limited by the actual suffered (and proven) financial loss. In this regard, the party that suf- fered the loss has an obligation to limit the loss (if pos- sible). Punitive damages are generally not available in Danish law; the possibility of receiving damages exceeding the actual financial loss is very limited. 9.3 Pre-Judgment and Post-Judgment Interest The Interest Act regulates the possibility of collecting interest under Danish law. However, special legislation in specific areas may contain separate rules. According to the Interest Act, interest must be paid from the due date if such date has been predeter- mined. If the due date is not predetermined, interest must be paid 30 days from the date of the demand for payment. In the case of legal proceedings, interest can be demanded from the day the case is filed in court. Interest is calculated until the payment date, unless the interest has become time-barred, in which case it is generally subject to a three-year statutory limitation (see 3.2 Statutes of Limitations ). According to the Interest Act, the default interest rate is 8% per annum plus the official lending rate set by the Central Bank of Denmark. 9.4 Enforcement Mechanisms of a Domestic Judgment Domestic judgments can be directly enforced in the enforcement court. If a judgment concerns a mon- etary claim, it is possible to enforce the judgment at the enforcement court, which can involve securing the debt in the debtor’s assets and conducting a forced sale, if necessary. The enforcement court can also assist in maintaining injunctions and prohibitions. Judgments can be enforced 14 days after they are issued by the court, unless the case is appealed before the deadline expires.
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