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Our firm represented creditor in debt collection lawsuit in Ukraine

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Represented large food wholesaler in debt collection lawsuit

Our law firm’s Kyiv office was contacted by a large Ukrainian food wholesaler the counterparty of which had not paid for the last four supplies of goods. The client had already sent letters of demand in regard to repayment of debt so our lawyers proceeded directly to taking legal action.

Primary analysis of the client’s situation showed that there were some problems with the documents proving the supplies taking place. In particular it turned out that prior to receiving the last supply the debtor underwent reorganization from a Private Joint-Stock Company into Limited Liability Company. At the same time our client was not aware of this fact so all the paperwork was formalized with the Private Joint-Stock Company as supply contract counterparty. Moreover, receiving of the last supply of goods was confirmed by signature of Private Joint-Stock Company’s official and its corporate seal.

Our legal position reflected in complaint as well as during court hearing was based on provisions of Article 87 of the Law of Ukraine “On joint-stock companies” which stated that when a JSC is undergoing reorganization (change of organizational form) all its property, rights and obligations are transferred to its successor. Since the LLC was the only legal successor of the JSC, all the obligations of the latter were transferred onto the former in full. The court supported our legal position and recognized it to be lawful despite some minor problems of primary documents formalization. Therefore the judgment of the court of first instance was in favor of our client.

As of today lawyers representing litigation practice of our law firm supported victory in the court of first instance with positive decisions of the court of appeal and court of cassation since the debtor put up a fierce defense and used all available legal remedies. Thus, our law firm helped the client to get court ruling on recovery of debt and penalties for late payment of commercial debt in the amount of 500000 UAH (considering exchange rate the amount equaled to around 18500 USD).

Clients seeking litigation lawyer in Ukraine or Kyiv may also be interested in other publications of our law firm on recovery of debt and other legal representation in Ukrainian courts like:

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