NORWAY Law and Practice Contributed by: Knud Jacob Knudsen, Jenny Sandvig, Oda Lauksund Engamo and Nicholas Foss Barbantonis, Advokatfirmaet Simonsen Vogt Wiig
8. Settlement 8.1 Court Approval
the deadline, 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 bind- ing on the parties in the same way as any other agreement. Whether or not an out-of-court set- tlement agreement can be set aside is a contrac- tual issue and is not subject 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 specific performance, damages or injunc- tions. One of the most common forms of award to a successful litigant is monetary damages. A successful litigant will normally also be entitled to compensation for their costs incurred in rela- tion 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 compensation, apart from some exceptions related to personal injury. Punitive damages in the traditional Anglo-American sense are not awarded under Norwegian law. The court can
As a main rule, court approval is not required to settle a lawsuit in Norwegian civil cases, as most cases can be settled through an out-of- court settlement. However, the parties may con- clude the settlement as an in-court settlement if they agree on this. The settlement will then be signed by the members of the court and entered in the court register, but the court will not carry out comprehensive control over the content of the settlement. The parties’ right of disposition is limited in cer- tain cases, including matters of personal status and legal capacity, matters regarding the legal status of children and administrative decisions on coercive measures. If such a case is brought before the court, the court has an independ- ent responsibility for the outcome of the case, so a settlement between the parties must be approved by the court. Furthermore, certain cas- es cannot be settled under any circumstances if they are brought before the court, including child welfare cases. 8.2 Settlement of Lawsuits and Confidentiality Civil cases can be settled through an out-of- court settlement or through an in-court settle- ment. If the settlement is made out of court, it will remain confidential if the parties agree to a confidentiality undertaking. If the parties choose an in-court settlement, the settlement is entered in the court register. Thus, as a main rule, the settlement is public. 8.3 Enforcement of Settlement Agreements An in-court settlement can be enforced if the other party does not fulfil its obligations within
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