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Our law firm represented a creditor in a debt collection lawsuit

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Debt collection resulting from contracts of supply

Office of our law firm in Kiev was contacted by representatives of a local company that needed to recover debt owed by its counterparty for a number of supplies. As of the moment when the creditor requested our legal services the cooperation between the parties had been lasting for more than three years with more than 100 supplies performed. The problem was that the payment procedures in regard to the supplies were not always clear and strict. Instead of paying for one supply transaction at a time the parties adopted approach when payments were either partial or covered several supplies at a time.

This is why the major task for our attorneys during the first stage of pretrial procedure was to clearly define unpaid amount owed for the supplies, calculate period for which the payment was overdue and if possible apply penalties for late payment of commercial debts. Upon researching our client’s documents, lawyers representing litigation practice of our law firm identified 26 unpaid supplies of goods (partially or in full). It was calculated that the amount of debt owed for all the supply transactions including late payment penalties (fine and financial penalty in the amount of annual 3% rate) overall totaled in 1350000 UAH (around 50000 USD as of that moment). Due to complexity of the case, the calculations were reflected on full 13 A4 pages.

One of the peculiarities of litigation process was that upon receiving the complaint initiating debt collection lawsuit the court requested to perform recalculations of fines amounts due to their incorrectness. However, during hearings of the case our lawyers managed to prove arithmetical correctness of calculations and complete the trial within two hearings (considering that the hearings took place outside of Kiev in Commercial court of Rivne region our firm did not only win the debt collection case but also minimized client’s expenditures in regard to transportation and other travel expenses).

You can find more about our legal services related to creditor-debtor litigation and debt collection in Ukraine by following corresponding links.

Views: 2010
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