NORWAY Trends and Developments Contributed by: Kristian Lindhartsen, Lilly Kathrin Relling and Tobias Kilde, Kvale Advokatfirma DA
which is a critical aspect of the broker-client relationship. The court also concluded that the broker had not made sufficient effort to ensure that the client understood the value of the asset she was selling. This was underscored by the testimony of two expert witnesses in the mat - ter, who described a more prudent approach to ensuring that the client is duly informed of the value of the sales objects. The ruling also has significant implications for brokerage firms, as it establishes that both the employer and the employee can be held liable for damages caused by negligence. Brokerage firms must ensure that their employees are well- versed in the ethical rules and service guidelines provided by the Norwegian Shipbrokers’ Asso - ciation and that they adhere to these standards diligently. To summarise, a broker must pay special atten - tion to the ethical rules and service guidelines provided by the Norwegian Shipbrokers’ Asso - ciation. This means that the broker must ensure that: • the brokering is conducted in the client’s best interest; • the brokering process is transparent and veri - fiable, with written confirmation; • the client is kept duly updated throughout the process; and • the client is made fully aware of the item’s value or is at least urged to seek this informa - tion elsewhere.
In light of other case law regarding broker liabil - ity, the ruling is consistent with the development of strict professional responsibility. This is espe - cially notable considering that some judges in the court found that the broker had acted with gross negligence. The ruling also aligns with the high standards to which brokers in other profes - sional fields are held, in terms of their profes - sionalism and their duty of care towards their clients.
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