Bjarne Melgaard Loses Legal Battle Against Former Business Partners
Bjarne Melgaard’s Legal Battle with Former Business Partners
Artist Bjarne Melgaard lost a lawsuit against his former business partners, Stein Lie and Svein Roar Grande. The Oslo district court ruled in favor of Lie and Grande, dismissing all of Melgaard’s claims.
In 2020, Melgaard signed an agreement with Lie and Grande, giving them control over significant parts of his artistic work. Melgaard sought to terminate this agreement but was unsucessful. The court stated, “Stein Lie and Svein Roar Grande are acquitted of claims made by Bjarne Melgaard.”
Lie and Grande filed counterclaims against Melgaard and won. The court ordered Melgaard to pay over 10 million Norwegian kroner to Lie and more than 2.3 million kroner to Grande. These payments include breaches of contract, rent due, compensation for property damage, and legal costs.
Melgaard argued that he was coerced into the agreement while struggling with addiction issues. However, Lie and Grande countered that they were victims of Melgaard’s manipulations. The judge concluded that Melgaard’s allegations were unfounded.
Background of the Conflict
Bjarne Melgaard, Stein Lie, and Svein Roar Grande had a long-standing business relationship. They signed multiple agreements that often changed. Over time, they lost track of their commitments. To simplify matters, they created a new agreement called the “main agreement.” In this contract, Melgaard relinquished ownership of hundreds of artworks.
The terms of the main agreement prompted Melgaard to later claim that he had been misled into believing he owed vast sums to Lie and Grande. They denied these claims, stating they were the true victims.
Legal Claims and Counterclaims
Melgaard sought to invalidate the main agreement and made several requests, including:
- The court to determine which artworks would revert to him.
- An injunction against Lie and Grande from producing new artworks in his name.
- Compensation from Lie and Grande, with the court deciding the amount.
- That Lie and Grande cover the legal costs of the case.
In turn, Lie and Grande demanded:
- Melgaard repay 4.8 million kroner for expenses they covered on his behalf.
- 1.1 million kroner for unpaid rent for an atelier and apartment.
- 420,000 kroner for storing Melgaard’s artworks.
- Coverage of their legal costs.
Determining Factors in the Case
Central to the case was Paragraph 36 of the Norwegian Contract Act, which allows contracts to be nullified if they are grossly unbalanced or unfair. Legal experts note that while Melgaard’s contract was poorly constructed, it can be challenging to invalidate a contract under this law.
The court also considered Melgaard’s mental state at the time of the agreement. Despite his history of substance abuse, the court found no evidence that this significantly impacted his ability to consent to the contract. The ruling indicated Melgaard had legal assistance during the agreement’s formation, which further weakened his position.
The Value of Melgaard’s Art
The monetary worth of Melgaard’s art is debated. Melgaard’s side estimates it could range between 200 to 300 million kroner, while Lie and Grande argue it is much lower.
Future Actions
The court’s ruling is not final. Melgaard has the option to appeal the decision in a higher court. Responses from Lie, Grande, and Melgaard’s management are currently pending.