In a recent judgment from Rana District Court, Advokatfirmaet Bull AS partner Kristoffer Aaseboe Aasebø has assisted a homeowner who has now been successful in a dispute against a change-of-ownership insurance company.
The core of the case concerned a foundation of a house built just after the war, where the foundation was built with condition grade 1 (TG1). According to the plaintiff (our client), the wall was in the process of disintegrating, while the other party (the insurance company) believed that the condition of the foundation was completely normal for a home of this age. When excavated in connection with drainage, the concrete appeared so weak that, after laboratory tests, it could not be pressure tested, and in practice could be crushed into powder with two hammer blows.
The homeowner initially lost in the Financial Services Complaints Board, but took the case to the courts. The court placed particular emphasis on the physical findings and the expert report, which concluded that the correct condition was TG3, and that the carrying capacity was clearly lower than expected based on age and the information provided at the time of sale. The result was a price reduction of NOK 650,000, as well as NOK 311,801 in legal costs. The case can be appealed.
Important points from the judgment are:
- Documented, physical findings and good expert evidence can tip the case when the experts disagree
- The stated condition grade governs the buyer’s expectations (and can result in a price reduction) also in the case of older homes
- Sintef’s maintenance intervals must be used correctly and do not exclude price reductions
- Losses in the Financial Services Complaints Board do not rule out success in the courts