Expert Guidance on Pre-trial Settlement of Commercial Disputes

Pre-trial settlement is a complex yet increasingly preferred mechanism to resolve business conflicts efficiently, in compliance with the law, and often at significantly reduced costs and risks. In business, contractual obligations may be breached intentionally or due to unforeseen circumstances. Ukrainian legislation provides for both judicial and extrajudicial pathways for resolving such disputes. The pre-trial approach involves sending a formal written claim, substantiating documentary evidence, and adhering to statutory requirements regarding the form and dispatch of the claim. The recipient is legally obliged to review the claim within a set period—usually one month—and respond in writing. If the opponent ignores the claim, the claimant may proceed to court, having demonstrated compliance with mandatory pre-trial actions. Furthermore, the law sometimes makes pre-trial settlement obligatory; failure to comply can result in the court rejecting your claim for non-compliance. This legal mechanism helps maintain business relationships and often results in a faster and mutually satisfactory resolution, avoiding long and costly litigation. However, legal practice and court interpretations vary: the Constitutional Court of Ukraine and the Supreme Court have emphasized that only explicit legal norms make pre-trial settlement mandatory. Thus, businesses are advised to strictly follow formal requirements in mandatory cases, as errors can lead to delays or outright rejection of their lawsuits by the courts. Our service includes full legal support—from advising you on necessity and best approaches, preparing all paperwork, to supporting you in negotiations and, if needed, representing your interests in court. By trusting us, you ensure your business makes the most of all available legal tools while minimizing risks and costs, and maximize the probability of an efficient, favorable settlement. Contact us for a personalized consultation to address your specific commercial dispute.