Construction workers from Kherson won a lawsuit against the city council for four million

A Kherson-based construction company won a court case against the Department of Municipal Services, securing nearly 4.25 million hryvnias in compensation and penalties. The department was ordered to pay the funds due to a delay in payment for repairs to a public square that the company had completed back in 2021.

This is stated in the ruling of the Commercial Court of Odesa Oblast. 

Representatives of the Kherson City Council did not appear at the court hearing and did not provide the court with any objections or evidence in their favor. An order to collect the funds will be issued once the ruling becomes final.

According to the case file, the following amounts will be recovered from the Kherson Department of Municipal Services:

• 2,168,523 UAH — for inflation-related losses;
• 1,483,025 UAH — late payment penalties for each day of delay;
• 594,466 UAH — 3% annual interest for the use of another party’s funds;
• 50,952 UAH — reimbursement of court fees.

According to the court case materials, the contractor “D.I.S. BUD” signed two contracts with the department for the major renovation of landscaping elements in Potemkin Square in Kherson in 2021. The contractors fully fulfilled their obligations for a total amount of over 10.2 million hryvnias. As noted in the case file, this fact was confirmed by mutually signed certificates of completion. However, the city authorities failed to pay for the services on time.

The company had already recovered the principal amount of the debt through the courts. Now, the contractor sought compensation for the prolonged delay in payments and the loss of value of the money during the waiting period.

The court reviewed the calculations provided, found them to be fully justified, and ruled in favor of the construction company. 

Юлія Калабайда