The litigation team of ProfiLegal, led by Partner Vadym Matiushko with the participation of lawyer Khrystyna Yaniv, successfully defended a client before the Supreme Court of Ukraine, securing a ruling that sets a precedent for similar disputes.
The Commercial Cassation Court of the Supreme Court overturned an unlawful decision that had imposed nearly UAH 10 million in land-use fees on a professional Manager of seized property and confirmed ProfiLegal’s legal position.
The dispute arose when a local government authority filed a claim seeking payment for the use of land under a non-residential building based on Article 1212 of the Civil Code of Ukraine. The City Council argued that the Manager of the property, transferred under the management of the National Agency for Detection, Investigation and Management of Assets (ARMA), was the proper user of the land and therefore liable for the payment. The building had been seized in 2018 as part of a criminal proceeding and placed under management according to the requirements of special legislation.
ProfiLegal demonstrated that a Manager of seized property does not acquire ownership rights, acts strictly within a special legal regime, and is not liable for holding payments for land use. The Supreme Court agreed, stating that the property owner, even when the property is seized and placed under professional management, remains the actual user of the land and the proper defendant in claims brought by local authorities under Article 1212 of the Civil Code.
This landmark ruling establishes legal practice regarding the determination of the responsible party for land-use fees in cases of seized property placed under management, as well as disputes over unjust enrichment arising from land use payments.