Kyiv Post Legal Quarterly - - Contents -

Un­til re­cently, only a third of all court de­ci­sions had been en­forced in Ukraine, and the amounts col­lected in the process of en­force­ment made a mi­nor per­cent­age of those funds that were sub­ject to forcible col­lec­tion. As a re­sult, the ul­ti­mate goal of jus­tice was ze­roed out by non- en­force­ment of court de­ci­sions. If a sys­tem does not func­tion ef­fec­tively, it should be changed. Thus, in Ukraine a mixed sys­tem of ju­di­cial en­force­ment has been in­tro­duced, where court de­ci­sions will be ex­e­cuted not only by the state en­force­ment agency, but also by pri­vate en­force­ment agents. The ten­dency of at­tract­ing pri­vate in­sti­tu­tions to the process of ju­di­cial en­force­ment is be­com­ing more and more no­tice­able abroad. Pri­vate en­force­ment agents op­er­ate in most Euro­pean coun­tries. In some coun­tries, pri­vate en­force­ment agents act along­side state en­force­ment agents. Such a model, how­ever, is more typ­i­cal of a pe­riod of tran­si­tion from the state to the pri­vate en­force­ment sys­tem. This sum­mer in Ukraine, the first pri­vate en­force­ment agents are get­ting their cer­tifi­cates and be­gin their ac­tiv­i­ties. Sta­tis­tics show that that it is ad­vo­cates, ar­bi­tra­tion man­agers, and for­mer em­ploy­ees of the en­force­ment ser­vice who will be­come pri­vate en­force­ments agents. Pri­vate en­force­ment agents have the au­thor­ity to en­force al­most all kinds of court de­ci­sions, in par­tic­u­lar, de­ci­sions on col­lec­tion of funds, fore­clo­sure of the se­cu­rity in­ter­est in mov­ables and im­mov­ables, seizure of prop­erty and re­strain­ing or­ders. Pri­vate en­force­ment agents are not al­lowed by law, how­ever, to col­lect funds in ex­cess of UAH 6 mil­lion (un­til 01.01.2018), to en­force de­ci­sions against state au­thor­i­ties, to col­lect funds from state and mu­nic­i­pal en­ter­prises, and to carry out evic­tion from hous­ing. GENTLS law firm spe­cial­izes in lit­i­ga­tion. GENTLS lawyers work at all stages of dis­pute res­o­lu­tion, rang­ing from le­gal sup­port in ne­go­ti­a­tions, throught ad­min­is­tra­tive ap­peals, to rep­re­sen­ta­tion of clients in courts and at the stage of ju­di­cial en­force­ment. We un­der­stand that it is im­por­tant for our clients to get a pos­i­tive out­come. When it comes to court pro­ceed­ings, such an out­come will not only be a court de­ci­sion in it­self, but its en­force­ment, such as the col­lec­tion of funds, trans­fer of prop­erty, etc. There­fore, GENTLS law firm has launched a de­tached prac­tice of ju­di­cial en­force­ment, which is aimed at an ef­fec­tive in­ter­ac­tion with pri­vate en­force­ment agents. In my opin­ion, a truly ef­fec­tive law firm should be pre­pared to take on re­spon­si­bil­ity for the or­ga­ni­za­tion and im­ple­men­ta­tion of a set of pro­ce­dures aimed at solv­ing the client's prob­lem. You hope you agree that it is con­ve­nient that a law firm has de­vel­oped busi­ness links with a no­tary public, an ar­bi­tra­tion man­ager or an au­di­tor, and that such a law firm is re­spon­si­ble to the client for the out­come. Thus, the re­spon­si­bil­ity is con­cen­trated on the law firm, and the client does not need to per­son­ally in­ter­act with dif­fer­ent sub­jects in the process. The same refers to pri­vate en­force­ment agents. Some of them will prove to be bet­ter and more ef­fec­tive. Choos­ing a pri­vate en­force­ment agent on their own, clients, so to speak, buy a cat in a bag, since it is un­known whether the agent will en­sure ef­fec­tive col­lec­tion or, on the con­trary, will make mis­takes that will en­able the debtor to suc­cess­fully con­test the agent’s ac­tions. A law firm prac­tic­ing in the field of ju­di­cial en­force­ment knows those pri­vate en­force­ment agents who have a high pro­fes­sional level and are most ef­fec­tive. En­trust­ing the ques­tion of choice of and in­ter­ac­tion with a pri­vate en­force­ment agent to a law firm, the client will re­ceive a fore­see­able sit­u­a­tion with min­i­mal risks, save time, op­ti­mize costs, which will ul­ti­mately have a pos­i­tive im­pact on the ul­ti­mate re­sult. It should be noted that the ac­tiv­ity of a pri­vate en­force­ment agent should be car­ried out in strict com­pli­ance with law and sub­ject to the rights of the debtor. In ad­di­tion to a law firm, the le­gal­ity of the ac­tions of a pri­vate en­force­ment agent will be su­per­vised by the Min­istry of Jus­tice of Ukraine, the bod­ies of pro­fes­sional self-gov­ern­ment, as well as by a court in case of a re­spec­tive claim. Thus, busi­ness re­ceives an ad­di­tional tool for col­lect­ing over­due debts. We sin­cerely hope that the Euro­pean ex­pe­ri­ence of at­tract­ing pri­vate en­force­ment agents will im­prove the sit­u­a­tion in the field of ju­di­cial en­force­ment in Ukraine.

Man­ag­ing Part­ner at GENTLS law firm Oleh Gro­movyi

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