ProfiLegal’s team represented the interests of Residential Complex Vozdvyzhenka LLC in a commercial dispute with a city council over a claim exceeding UAH 10 million.
The Kharkiv City Council sought, through legal proceedings, to recover nearly UAH 10 million from the client, arguing that this amount was unjustifiably retained as rent for the use of a land plot. The basis for the claim was the assertion that the manager of the real estate under seizure was the de facto user of the land.
However, back in 2018, a non-residential commercial building was seized in the framework of a criminal proceeding and transferred to the Asset Recovery and Management Agency (ARMA) for management. In turn, ARMA signed a management agreement with Residential Complex Vozdvyzhenka LLC to oversee the seized property. The funds received during management were allocated to the state budget, to cover property maintenance costs, and to pay the manager’s fee.
ProfiLegal’s lawyers successfully argued in court that the manager of seized assets acted within the framework of a special law and did not acquire ownership rights. The court upheld ProfiLegal’s legal position, noting that the obligation to pay land rent lies with the property owner, even in the event of seizure and transfer to a third-party manager.
This decision is significant for the practice of managing seized assets. It demonstrates the court’s consistent approach to distinguishing between the rights and obligations of property managers and owners.