Legal Alliance Senior Partner Dmitry Aleshko Joins Legislative Initiative to Revise Legal Expenses Compensation Scheme…

Valeriy Pisarenko, Member of the Ukrainian Parliament, submitted Draft Law of Ukraine On Amendment of Certain Legislative Acts of Ukraine, seeking to update the existing legal expenses compensation procedure, for parliamentary review.

The bill has been registered by the Parliament under no. 4072.

This legislative initiative belongs to Mr Dmitry Aleshko, senior partner of Legal Alliance Law Firm and board member of the Ukrainian Lawyers' Association, and Mr Valentin Zagaria, member of the Ukrainian Lawyers' Association division council.

The bill offers to amend articles 44 and 48 of the Ukrainian Code of Economic Process, article 84 of the Ukrainian Code of Civil Process and article 90 of the Ukrainian Code of Administrative Process as regards compensation of expenses related to legal services provided by attorney or any other law professional.

The following provisions are suggested:

1. By motion of the party in whose favour the court ruled the other party will be judged to reimburse its expenses incurred in respect of services of an attorney or another law professional.
2. In the event legal services were provided by an employee their value will not be subject to reimbursement.
3. Cap value for legal expenses to be so reimbursed for cases of non-property nature will not exceed ten minimum wages.
4. For cases involving property interests the cap for reimbursement of legal expenses will be ten percent of the satisfied portion of the demanded relief.

As bill initiators believe, its enactment would make justice more affordable and would create an effective mechanism for compensation of legal expenses to parties of the process, which, in its turn, will cut off a substantial share of unjustified or unsecured suits. Furthermore, risks related to compensation of legal expenses will be another motive for parties to resolve their dispute outside court.

The Draft Law is presently under review at the Ukrainian Parliament's Justice Committee.

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