The Borrower lost against Nordea in the Court of Appeal

A borrower took legal action against Nordea for negligent consultancy in connection with a loan of Swiss francs. The loan was terminated with significant losses due to the fact that the Swiss franc had strengthened greatly over time against the Norwegian krone.

The District Court ruled in favour of the borrower and came to the conclusion that Nordea should have advised against the loan of Swiss francs. BAHR was engaged to conduct the appeal. Frostating Court of Appeal held Nordea not liable. The Court of Appeal came to the conclusion that Nordea had given satisfactory information about the risks involved when borrowing in a foreign currency, that Nordea did not have a duty to recommend to abstain and that there were no conditions that would justify neither liability, nor overturning the agreement pursuant to the Norwegian Contract Act § 36.

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