Cases on disputes arising out of transactions, in particular contracts

Debt Recovery Under a Supply Agreement: Legal Support in Commercial Court

In 2024, Sole Proprietor Linnik Mykhailo Olehovych, engaged in the wholesale trade of auto parts, filed a lawsuit with the Commercial Court of Mykolaiv Oblast against Budalians Group Construction Company Limited Liability Company, operating in the construction sector. The purpose of the lawsuit was to recover a significant amount of debt under a supply agreement, as well as accrued inflation losses and penalties.

At the time of filing the lawsuit, Budalians Group Construction Company LLC had failed to fulfill its obligations under Supply Agreement No. 000005 dated March 19, 2018, regarding the payment for the delivered auto parts amounting to a total of UAH 136,072.27. In addition to the principal debt, the plaintiff accrued UAH 3,688.09 in inflation losses and UAH 242,208.64 in penalties, as stipulated by the terms of the agreement. The claim also included reimbursement of court fees and legal aid expenses.

Key Stages of Debt Recovery Proceedings

1. Preparation and Filing of the Statement of Claim. Collection of necessary documents (supply agreement, consignment notes, reconciliation statement, claim letter), calculation of the debt amount, inflation losses, and penalties, drafting and submission of the statement of claim to the Commercial Court of Mykolaiv Oblast.
2. Opening of Proceedings. Review of the statement of claim by the court, issuance of a ruling on the opening of proceedings under the rules of simplified procedure, and scheduling the case for hearing.
3. Taking Measures to Secure the Claim (if necessary). Filing a motion for the arrest of the defendant's accounts or property to ensure the actual enforcement of the future court decision.
4. Court Hearing. Examination by the court of the submitted evidence (agreement, consignment notes, reconciliation statement), hearing of the parties' explanations (if they appear), and rendering a court decision.
5. Enforcement of the Court Decision. Obtaining an enforcement order and applying to the state enforcement service for the compulsory recovery of the debt from the defendant in case of voluntary non-compliance with the court decision.

Example from Commercial Dispute Resolution Practice

Situation: Sole Proprietor Linnik M.O. filed a lawsuit to recover debt from Budalians Group Construction Company LLC for the delivered auto parts based on the supply agreement concluded between them. Despite the delivery of goods and signed consignment notes, payment was not made in full.

Court Actions:

• The statement of claim of Sole Proprietor Linnik M.O. was accepted for consideration by the Commercial Court of Mykolaiv Oblast.
   
• The court opened simplified proceedings in case No. 915/605/24.
   
• The defendant was sent a ruling on the opening of proceedings and granted a deadline to submit a response to the claim, which they did not use.
   
• The court examined the evidence provided by the plaintiff: the supply agreement, consignment notes, a reconciliation statement of mutual settlements, and a claim letter for debt payment.
   
• Given the absence of a response from the defendant and the presence of sufficient evidence confirming the fact of delivery and indebtedness, the court ruled to partially satisfy the claims.
   
• The court ordered Budalians Group Construction Company LLC to pay Sole Proprietor Linnik M.O. the principal debt of UAH 136,072.27, and partially satisfied the claims for the recovery of inflation losses and penalties.

Result: The court partially satisfied the claims of Sole Proprietor Linnik M.O., recovering the principal debt, a portion of the inflation losses and penalties, as well as court fees from Budalians Group Construction Company LLC.

Our Services for Representation in Commercial Disputes

• Detailed analysis of documents and case circumstances. Assistance in collecting necessary evidence and forming a legal position.
• Preparation of all necessary procedural documents. Drafting statements of claim, motions, responses, and appeal and cassation complaints.
• Representation of client's interests in all instances of commercial courts. Participation in court hearings, providing explanations and evidence.
• Support of enforcement proceedings. Monitoring the enforcement of court decisions by the state enforcement service.
• Consultations and legal support at all stages of the litigation process. Providing clarifications on rights and obligations, assessing the judicial prospects of the case.

Why Choose Us for Resolving Commercial Disputes?

• Significant experience in handling commercial cases of various complexities.
• In-depth knowledge of commercial legislation and case law.
• Individual approach to each client and their case.
• High level of professionalism and responsibility for the outcome.

 

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