Ilyashev & Partners protects hardware plant in supply dispute with industrial equipment manufacturer

Ilyashev & Partners has successfully represented Ukraine’s leading metalware manufacturer in a dispute with an industrial equipment manufacturer over a breach of a supply agreement.

In 2021, the plant and the manufacturer agreed to supply and install special industrial equipment worth over UAH 15 million. The hardware plant fulfilled its contract obligations and transferred to the manufacturer part of the payment of UAH 9.6 million. However, the manufacturer neglected the contractual terms and delayed the products’ delivery by two years.

In order to protect the hardware plant, Ilyashev & Partners’ Kharkiv office team prepared and sent a letter of claim requesting the manufacturer to terminate the agreement and return the funds paid for the equipment. However, multiple attempts to settle the dispute with the manufacturer before trial had no effect. Therefore, the attorneys filed a claim against the manufacturer on behalf of the plant.

In the course of the proceedings, the equipment manufacturer filed a counterclaim demanding the plant to pay penalties for delays in payment under the agreement. The team proved that the manufacturer failed to fulfil its obligations to supply the equipment within the contractual terms and breached its obligations.

The Commercial Court of Donetsk Region accepted the grounded legal position of the team and ruled to recover from the manufacturer the funds paid for the products totaling over UAH 9.6 million, as well as to reimburse all legal expenses. The relevant court judgment was issued on 12 September 2024.

The case was handled by Andriy Lytvyn, head of the Kharkiv office, and Vadym Kizlenko, counsel.

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