TRANSACTIONAL NEWS
- Date: 10.05.2018
- Practice: Dispute Resolution
- Industries: Banks, insurance, leasing and financial companies, The participants of the real estate market, IT / TMT, Industrial and Production Companies, Medical, Pharmaceutical, Research, Companies, Logistic companies /car dealers, Agricultural Companies
KPD Consulting Law Firm successfully protected the Client, a financial institution in the Supreme Court in case on application of legislation on protection of consumers when entering into a loan agreement (case No. 300/900/15-ц).
The decision of the court of first instance in the case was passed in the Client’s favor. However, the Court of Appeal cancelled the decision of the court of first instance and adopted a new one, according to which the clauses of loan agreement with regard to payment settlement with reference to the equivalent in US dollars are deemed invalid and according to the Court of Appeal the client is obliged to recalculate all excessively received funds in payment of the following monthly payments under the loan agreement. The Court of Appeal motivated such decision as violation by financial institution (the Client) of provisions of the law with regard to payment settlement with reference to the equivalent in US dollars and the Law of Ukraine On Consumer Rights Protection as to imbalance of interests and unfair terms and conditions of the loan agreement.
Based on the results of review of the cassation appeal of KPD Consulting Law Firm, the Supreme Court cancelled the decision of the Court of Appeal and the decision of the court of first instance passed in favor of the Client remained in force.
Managing partner at KPD Consulting Law Firm Igor Kalitventsev has mentioned: "In this category of cases a controversial court practice has been formed. Recently this is abused by unscrupulous debtors under loan agreements. Our company protects interests of financial institutions for many years. We are really glad that the Supreme Court was competent in consideration of the materials of this case and made a fair and lawful decision, which is very important for the further development of court practice in this field of legal relations".
KPD Consulting Law Firm is a Ukrainian independent full-service law firm established in 2007 for the purpose of rendering cost and time efficient high-quality services. We are focused on the business needs of the corporate Clients – leading local and multinational companies operating in Ukraine from various industries. As the full-service law firm we are especially strong in corporate law, M&A, banking & finance, tax law, real estate and construction matters, intellectual property, white-collar crimes and dispute resolutions. More information is at www.kpdconsulting.com.ua.
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Managing Partner
KPD Consulting
Igor Kalitventsev
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Associate
KPD Consulting
Eugene Litvinov
Should you have any questions with respect to above or require any additional information, please do not hesitate to contact Mr. Igor Kalitventsev (i.kalitventsev@kpdconsulting.com.ua) and Mr. Eugene Litvinov (e.litvinov@kpdconsulting.com.ua). We will be pleased to assist You.