NORWAY Law and Practice Contributed by: Christian Reusch, Jenny Sandvig, Oda Lauksund Engamo and Therese Sætre Løfsgaard, Advokatfirmaet Simonsen Vogt Wiig
8.3 Enforcement of Settlement Agreements An in-court settlement can be enforced if the other party does not fulfil its obligations within the dead- line, in the same way as a judgment. On the other hand, an out-of-court settlement is regarded as an ordinary agreement between the parties and is thus not enforceable without further procedural steps. 8.4 Setting Aside Settlement Agreements In-court settlements may be declared invalid or amended by judgment pursuant to the rules for the invalidity and amendment of contracts. An out-of-court settlement agreement is binding on the parties in the same way as any other agreement. Whether or not an out-of-court settlement agreement can be set aside is a contractual issue and is not sub- ject to procedural rules. 9. Damages and Judgment 9.1 Awards Available to the Successful Litigant A court decision can be declaratory (for example, “A is the owner of X”) or executory (for example, “A must pay Y to B”). Executory judgments can be for spe- cific performance, damages or injunctions. One of the most common forms of award to a successful litigant is monetary damages. A successful litigant will nor- mally also be entitled to compensation for their costs incurred in relation to the trial. Other remedies include temporary injunctive relief/ interim measures. 9.2 Rules Regarding Damages Damages are awarded on a compensatory basis – ie, only damages actually suffered are eligible for com- pensation, apart from some exceptions related to per- sonal injury. Punitive damages in the traditional Anglo- American sense are not awarded under Norwegian law. The court can reduce the liability if it considers it to be unreasonably burdensome for the liable party.
9.3 Pre-Judgment and Post-Judgment Interest Interest can be claimed under the Default Interest Act from the date payment was due, or within 30 days after the creditor has sent a claim for payment if no due date was agreed. The default interest rate is set biannually to a fixed percentage annual interest rate. Default interest cannot be claimed if the delay is caused by circumstances on the part of the creditor. 9.4 Enforcement Mechanisms of a Domestic Judgment Enforcement can be initiated by filing a request for enforcement with the Norwegian enforcement authori- ties. The most common form of enforcement is the collection of monetary claims. For claims that are secured by a lien, collection normally takes place through forced sale. For monetary claims that are not secured by a lien, the creditor must request a distraint procedure for the distraint of an asset belonging to the debtor. The lien obtained through this procedure then provides a basis for a forced sale. Other mechanisms for enforcement include attachment of earnings and bankruptcy proceedings. The enforcement of claims other than monetary claims can take place through the direct exercise of power by the enforcement authorities. The enforcement authori- ties can also impose a current fine until the defendant fulfils their obligation. 9.5 Enforcement of a Judgment From a Foreign Country The enforcement of foreign judgments in Norway is primarily governed by two legislative provisions: the Enforcement Act and the Dispute Act. Under these laws, foreign judgments do not have automatic legal effect in Norway and cannot be enforced until they have been declared enforceable. The enforcement of foreign judgments in Norway requires legal authority either by statute or by treaty. The specifics are provided under Section 19-16 of the Dispute Act for legal effect and under Section 4-1 (2) (f) of the Enforcement Act for enforceability. For judgments from a country within the European Economic Area (EEA) or European Union (EU), the
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