During the course of business activities, companies often encounter disputes with counterparties on a variety of issues. This can include delayed payments for goods or services, delayed delivery of products, poor-quality work performance, and more. In such cases, before resorting to court action, the company can issue a written claim to the other party. This can save both time and money on a legal dispute, as the other party may fulfill the demands based on the claim without waiting for a lawsuit. If, however, a written response is received refusing to satisfy the claim, you will be informed about the grounds on which the opposing party may justify its objections in court, which will help better prepare for the upcoming legal dispute.
Moreover, judges often view the position of the party more favorably if a claim was made before resorting to the court, as in accordance with the Commercial Procedural Code and the Civil Procedural Code of Ukraine, parties are required to take steps for pre-trial dispute resolution.
Our experience shows that sending a legally sound claim to the counterparty, referencing relevant legal provisions and positive court practice, and indicating that in the case of a legal dispute, the primary obligation will include demands for penalties, legal assistance, and court fees, significantly increases the likelihood of resolving the disputed situation without going to court and preventing conflicts and the termination of relations between the parties.
Pre-litigation (Claims) work includes a wide range of services, including:
- Conducting a legal analysis of the contract and relevant documents to identify any breaches of contractual obligations;
- Drafting the text of the claim;
- Drafting the response to the claim;
- Providing consultations on handling claims work within the company.
Practice experience: 19 years
Specialization: litigation support, tax, customs and antitrust practices, agricultural law, IT and M&A
Practice experience: 21 years Specialization: support of economic, civil, labor and administrative disputes, energy
Practice experience: 11 years Specialization: tax, customs and corporate disputes, support of inspections, contractual activities
Practice experience: 6 years
Specialisation: business and civil law, tax and customs practice, corporate law, registration and reorganisation of business
Practice experience: 11 years Specialization: support of economic, civil, labor and administrative disputes, inspections
The claim should include: the full name and postal details of the claimant and the company to which it is addressed; the outgoing number and date; the circumstances on which the claim is based and the evidence supporting them; references to relevant regulations; the claimant’s demands; the amount and calculation of the claim if the claim is subject to a monetary assessment; the claimant’s payment details; a list of documents attached to the claim.
Documents held by the other party may not be attached to the claim, with a mention of this in the claim. For a claim regarding the payment of money, an invoice for the amount of the claim and two copies of the reconciliation acts of the mutual settlements between the parties may be attached.
If no response is received to the claim, a reminder letter may be sent to expedite the response to the claim. This letter should be signed and sent in the same manner as the claim itself.
If all the documents required for the claim review are not attached, they are requested from the claimant with a specified deadline for submission. If the requested documents are not provided within the established timeframe, the claim is reviewed based on the available documents.
The response to the claim must include the full name and postal details of the responding company and the company to which the response is sent; the date and number of the response; the date and number of the claim being addressed; a list of attached copies of documents and other evidence (transport documents for shipment of goods, a copy of the payment order for debt settlement in case of acknowledgment of the claim).
The claim, after being signed by the company’s manager, is sent to the recipient at their legal address via registered mail with a return receipt and description of the contents, or it is handed over in person with a signature upon receipt.
The claim may include all justified demands, such as the payment of debt with three percent annual interest and inflationary losses, the termination of the contract, or the demand to fulfill obligations in kind.
In such a case, it is advisable to promptly file a lawsuit in court, as the statute of limitations for filing a claim for the recovery of penalties (fines, late fees) according to Article 258 of the Civil Code of Ukraine is one year. Moreover, under Article 232 of the Commercial Code of Ukraine, the imposition of penalties for the delay in fulfilling obligations, unless otherwise provided by law or contract, ceases six months after the deadline for fulfilling the obligation has passed.
