EQUITY DEFENDED INTERESTS OF THE OWNERS OF 'FURSHET' SUPERMARKET

On March 15, 2017 EQUITY law firm successfully represented LLC "Frosbi M" - the owner of a network of supermarkets 'FURSHET'- in the Economic Court of Kyiv in a dispute with PJSC "Zlatobank."

During one year EQUITY lawyers represented interests of LLC "Frosbi-M" in three disputes to contest the validity of agreements to set-off the  debts of LLC "Frosbi-M" to the Bank, in connection wherewith the main case concerning collection of debt was dismissed.

In 2015,  EQUITY team of lawyers initiated proceedings to recognize obligations under the credit agreement discharged  by way of set-off of reciprocal homogeneous claims under credit and deposit agreements totaling more than 2 million dollars. In response to those actions the Bank initiated two disputes to recognize those agreements invalid. Following consideration of the cases by courts of all instances, including the Supreme Economic Court of Ukraine, decisions were made in favor of the client and they confirmed the legality of set-off of reciprocal homogeneous claims and compliance of the agreement with requirements of Art. 601 of the Civil Code of Ukraine, which in turn was the result of a lawful discharge of obligations under the credit agreement. Those solutions not only are prejudicial to the main proceedings to recover the debt, but also extended the judicial practice in terms of disputes concerning set-off.

Considering the main case on debt collection, the court once again confirmed the legitimacy of transactions for set-off of reciprocal homogeneous claims and partially denied the Bank’s prayers for relief.

The case was handled by a team of lawyers led by a EQUITY partner Serhiy Chuiev and a senior associate Oleksiy Stepanenko.