KPD CONSULTING SUCCESSFULLY PROTECTED INTERESTS OF THE DEPOSITOR OF PJSC CB "EUROBANK" IN A LAWSUIT WITH THE DEPOSIT GUARANTEE FUND OF INDIVIDUALS

The Client applied to KPD Consulting Law Firm for legal assistance since the Client has opened a bank account in PJSC CB "EUROBANK", to which funds in the amount of UAH 181 300,00 were transferred later. Two days after the funds were transferred the bank became insolvent. The client tried to return the said amount through the Deposit Guarantee Fund of Individuals (hereinafter - the "Fund"), but the Fund refused to return the said amount and declared the transaction on transfer of funds null and void.

In order to protect the Client's property rights and interests the attorneys of KPD Consulting Law Firm filed a claim to oblige the Fund's authorized person competent in liquidating PJSC CB “EUROBANK” to submit to the Fund additional information about the Client as a proper legal depositor entitled to reimbursement of funds on the deposit at the expense of the Fund.

The decision of the court of first instance was made in favor of the Client and the claim was fully satisfied.

However, the court of appeal revoked the decision of first instance and dismissed the claims. The court of appeal justified its position by the fact that at the time of funds transferring in favor of the Client PJSC CB "EUROBANK" was classified as a problem bank, therefore any transactions, including bank account agreements, which were carried out at the time of receipt by the Client of funds and led to an increase in the guaranteed amount of compensation for deposits of individuals by the Fund, are null and void according to the court of appeal.

Disagreeing with the decision of the court of appeal the attorneys of KPD Consulting Law Firm filed a cassation appeal to the Supreme Court.

Based on the results of consideration of the cassation appeal the Supreme Court agreed with the legal position of attorneys of KPD Consulting Law Firm as to existence of legal grounds for satisfaction of the claim, revoked the decision of the court of appeal and upheld the decision of the court of first instance. Thus, the Supreme Court recognized the Client as a proper depositor entitled to reimbursement of the said funds.

Igor Kalitventsev the Managing Partner at KPD Consulting Law Firm headed the lawyers team in this matter. Maksym Cherednichenko an attorney of the legal department supported the case in court. 

Igor Kalitventsev

Managing Partner

KPD Consulting

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). We will be pleased to assist You. The information contained in this overview is not intended to provide legal advice and should not be relied on or treated as a substitute for specific advice concerning individual situations.