Reducing penalties in court: the grounds, the criteria and the case law
What the webinar is about
The event is organised jointly with the Federation of Employers of Ukraine (FEU), a national organisation representing the interests of more than 3,000 enterprises across Ukraine.
A FREE SERVICE FOR FEU MEMBERS
A review of the claim or the statement of claim received, with an opinion on the prospects of having the penalties reduced by the court and a draft legal position.
How to obtain the service: after the webinar leave a request through the FEU or write to [email protected] marking it "FEU" and naming the webinar. The service is provided to FEU members free of charge, in the scope set out in the programme, with an NDA signed where needed.
The webinar is for you if at least one of these is your question
A counterparty has served you with a claim for a fine and interest several times larger than the principal debt.
A claim has been filed against your company in which the penalty is run up over the whole period of delay.
You performed the obligation late because of the war, the blackouts or the mobilisation of staff, but the counterparty demands the penalty in full.
Your contracts carry harsh penalties and you want to understand the real price of a delay.
You are recovering a penalty yourself and want to frame the claim so that the court does not cut it down.
Programme
The legal grounds for reducing a penalty: Article 551 of the Civil Code of Ukraine and Article 233 of the Commercial Code of Ukraine, and how the two relate.
The criteria courts actually weigh: the proportion between the penalty and the consequences of the breach, the degree to which the obligation was performed, the property position of the parties, martial law and objective obstacles.
The current practice of the Supreme Court in 2025-2026: by what percentage courts reduce fines and interest, and in which categories of dispute.
How to make the application for a reduction properly: the stage, the evidence, the typical mistakes of defendants.
The mirror position: how a creditor should draft the contract and the claim to minimise the risk of a reduction.
A review of cases from the practice of PROCTOR.

