Economic disputes – disputes between business entities – one of the most common categories of disputes, subordinate to economic courts.
Claim-claim work is an integral part of the work of any active company. Violation of the terms of the contract, non-delivery of goods, late payment, poor performance of work or services are only a few examples that arise in practice, leading to disputes between counterparties.
The first step in resolving any disagreement is usually the claim work, which until recently necessarily should have preceded the appeal to the court. At the moment, based on the constitutional right of each person to judicial protection, business disputes can be immediately transferred to the court, bypassing the procedure of pre-trial settlement.
Disputes over contracts related to breach of contract terms, non-compliance with contractual obligations by the parties are the main reasons that lead business entities to court. Since the economic process involves the awareness of its participants with the requirements of the current legislation, representation in the economic process is usually carried out by qualified lawyers. As practice shows, a lawyer on economic issues is an important part of any economic entity.
Economic disputes are mostly time-consuming. Simplifies the procedure, while increasing the chances of obtaining a positive court decision, legal support of business cases in court, in particular representation in the economic process.
Legal services for economic disputes Lawyer for Economic Affairs Accompanying disputes in the economic courts
The law firm AGTL provides legal services to handle disputes in the economic courts. One of the main specialties of our company is the service of business, so disputes between legal entities requiring reliable legal support are an integral part of customer support.
A lawyer in economic affairs, accompanying the activities of the season ticket client, who knows the history of relations with a particular contractor, will be able to choose the best way to protect the interests of the client and render representation in the economic court at the highest level.
At the same time, quite often our company is contacted by Clients, whose staff either do not have lawyers, or who want to transfer an economic dispute to conduct a third-party law firm. Commercial dispute in many cases requires non-standard approaches and quick decisions, and claim and claim work includes the following steps: familiarization with all documentation related to the subject of the dispute, legal assessment of the situation, the development of a legal position, the drawing up of claims, claims, claims, other procedural documents, as well as direct representation of interests in the economic court.
Disputes between legal entities Appeal of the court’s decisions Accompanying business cases in court
Despite the diversity of economic disputes, the main disputes between legal entities are:
- Litigation arising from the conclusion, change, termination and execution of business contracts;
- litigation with the Antitrust Committee of Ukraine
- litigation arising from corporate relations between the participant and the economic society, as well as between the participants of economic societies;
- Litigation over the illegal use of intellectual property;
- bankruptcy of legal entities.
Controversy over supply contract Contract disputes Disputes over lease agreement
Despite the long-term cooperation of the companies and confidence in the counterparty, disputes between organizations are a common phenomenon, which occurs in practice. The evasion of the party in one way or another from the implementation of the contract leads to the emergence of disputed relations between legal entities. If it is not possible to settle the dispute in pre-trial order, the dispute is referred to the court.
In general, disputes between economic entities arise when the conclusion, change, termination and implementation of economic contracts arise. Very often in practice there are disputes on the supply contract. Trusting the counterparty, some companies even before the conclusion of the contract begin to fulfill obligations under it. At the same time, the delivery of goods without a contract is fraught with a number of negative consequences, starting with tax and ending with the transfer of funds by an unscrupulous counterparty.
However, even if there is a well-written and concluded contract, the parties are not immune from the emergence of disputed relations in the future. Especially recently, the reason for many disputes is the delay of the counterparty to pay for the delivered goods. Recovery of arrears is most effective in court, any delay in this situation can lead to the loss of the opportunity to recover the assets of the company, and in the end, even winning the case, you can be left with nothing. Debt collection in the economic court should be combined with measures to ensure a claim, in particular, the imposition of arrest on the debtor’s property.
The reverse is the situation in which the supplier, having received a prepayment, refuses to deliver the paid goods. The stated claim for a refund does not always bring the expected result and in such cases the situation spills over into the judicial plane.
The next category of common disputes are contract disputes, the reasons for which are the failure or poor performance of work by contractors, as well as the collection of debt to contractors for the work performed. In the case of a step-by-step payment and the same surrender, the preparation of a claim is usually associated with complex calculations. Properly prepared claims in this case cover debt collection, penalties, inflation losses, as well as compensation of losses in the sphere of management.
Disputes over the contract of construction contract, as a subspecies of the above contracts, are a complex category of disputes, which are associated with high financial costs. As a rule, the value of construction contracts far exceeds the million threshold, which affects, among other things, the amount of legal fees paid when going to court. Reimbursement of losses in the field of management is relevant in this category of cases, as poorly performed construction work under the contract pose a serious threat to human life and health.
An equally common category of disputes is disputes over the lease agreement, the reason for which is mainly the delay in making rent payments. In addition to debt collection, it appears that this category of disputes is characterized by the recognition of the contract by the court because of the absence of all the essential conditions in the contract provided by the law. This situation is beneficial, in particular, to the landlord, who wants to enter into a contract on more favorable terms with a new tenant.
As a rule, violation of one of the parties to the terms of the contract, leads not only to legal disputes over its implementation, but also forces the parties to terminate the contract in court. The claim with the requirement to terminate the contract and the pre-claim for termination of the contract are the primary activities of the claim-claim work of the lawyer in this case. The termination of the contract in court is a forced step, which is taken by companies that are faced with evasion of contractors from fulfilling contractual obligations.
In contrast, the recognition of a contract as an unenth dated is in situations in which the contract is contrary to the general requirements of the law, violates public order, is concluded without compliance with the requirements for the form of the contract or by a person who does not have the proper authority to conclude it. Thus, in order to protect yourself in the future from legal consequences, such as invalidation of the contract, it is necessary at the signing stage to provide the contract to lawyers for legal analysis, verification of the authority of the person representing the second party and confirmation of the possibility of concluding the contract.
Legal support of business activities at all stages, including the maintenance of business cases in court, is a necessary component of successful business.
Controversy with the Antitrust Committee Appeal against the decision of the Antitrust Committee in court
The development of competitive legislation leads to the fact that increasingly our clients are involved in disputes with the Antitrust Committee of Ukraine and its territorial bodies, which are responsible for the state control over compliance with the law to protect economic competition, control over concentration, concerted actions of business entities, protection of competition during the implementation of public procurement, etc.
The most frequent legal disputes with the Antitrust Committee arise in the procurement of goods for public funds. In some cases, the AMCU authorities are trying to see in the actions of bidders concerted actions and violation of competition, for which there are huge penalties, the imposition of which is possible out of court. The only option to avoid liability is to appeal against the decision of the Antitrust Committee in court. Legally competently drafted claim or recall to the claim – well-founded and justified costs, allowing to save on the payment of sometimes millions of fines.
Bankruptcy of legal entities Bankruptcy in court Bankruptcy procedure
If we try to simplify and compress the term, the bankruptcy of legal entities can be designated as liquidation in court in case of insolvency of the business entity.
Half a century ago, the bankruptcy of the company was a collapse for its founders and the end of their business activities. At the moment, despite the unpleasant aspect associated with the recognition of insolvency of the enterprise, bankruptcy in court is in some situations not the worst option to repay the company’s payables.
In general terms, the bankruptcy procedure consists of the following steps:
- preparing an application for the opening of a bankruptcy proceedings, which can be filed by both the debtor and the creditor;
- Opening of bankruptcy proceedings;
- Representing the client (debtor or creditor) in court;
- The appointment by the court of the arbitrator;
- Identification of receivables by arbitrators, formation of a register of creditors’ claims;
- inventory of the bankrupt’s property, taking measures to ensure the safety of the bankrupt’s property;
- Assessment and sale of the bankrupt property;
- receivables of the bankrupt.
The money received is used to repay the debt to creditors in the order set by the law. Other unmet creditor claims are considered repaid.
Bankruptcy of legal entities ends with the court’s determination to approve the liquidator’s report and liquidation balance, which entails the introduction of a record of liquidation of the legal entity in the Single State Register of Legal Persons, Individuals – Entrepreneurs and Public Formations.
Legal services for the maintenance of economic disputes Kharkiv’s economic disputes Cost (price) and timing
In most cases, the time frame for resolving economic disputes is between one and four months, depending on the complexity and category of the dispute, the activity of the participants in the process and a number of other factors. In some cases, this period may both increase and decrease.
The company may need to go to court if:
- Contractors do not fulfill their obligations;
- There was a threat of an unfriendly takeover;
- Bankruptcy proceedings have been instituted;
- There are conflicts with shareholders or employees;
- There were other problems, which entailed scrutiny by law enforcement agencies or a trial.
- Consideration of disputes in the arbitration court requires an excellent knowledge of the current legislation and the construction of a competent line of defense of the interests of the company. Lengthy litigation depletes the company’s financial resources, and a foreign decision by a civil arbitration court could have negative consequences for the company.
Law firm AGTL offers assistance in economic disputes in the following cases:
- Economic and corporate disputes;
- disputes between the lender and the creditor (bill disputes);
- Disputes related to violations of antitrust laws;
- disputes related to the activities of state and municipal authorities, including:
- Disputes related to the performance of the state and municipal order (supply of goods, performance of works, provision of services);
- Challenging the acts of state and municipal authorities;
- appeal of the tax authority’s decisions on tax collection, tax liability;
- Disputes arising from investment contracts and construction contracts;
- Intellectual property disputes;
- Disputes related to foreclosure/claim:
- Lost profits
- unfounded enrichment;
- property from someone else’s illegal possession.
- Disputes related to recognition:
- Transactions invalid and the application of the consequences of invalid transactions;
- property rights (including unauthorized construction).
- Disputes involving the use of liability measures;
- disputes related to the removal of obstacles in the use of property.