New Opinion of the Grand Chamber of the Supreme Court on the Division of Costs

The Grand Chamber of the Supreme Court has charged for defendant legal aid costs of UAH 64,074. However, the collection of UAH 50 894 was refused due to late submission of evidence.

Such decision was made in an additional resolution of February 19, 2020 in case No. 755/9215/15-c.

Here are the main points of the Grand Chamber's decision:

1. With regard to the distribution of legal expenses for professional legal assistance:

✅ the amount of attorney's legal assistance costs, including attorney's fees for court representation and other legal assistance related to the case, including preparation for trial, collection of evidence, etc., as well as the cost of attorney's assistance services are determined by contract and on the basis of evidence on the volume of services rendered and the works performed and their cost;

✅ the amount of compensation for the lawyer's expenses is established by the contract on the provision of legal aid on the basis of evidence;

✅ the amount of compensation is determined by a detailed description of the work (services provided) performed by the lawyer and the costs required to provide legal assistance;

✅ The lawyer's costs claimed should be commensurate with:

- the complexity of the case and the work performed by the lawyer (services rendered);

time spent by the lawyer to perform the relevant work (provision of services);

- the volume of services provided by the lawyer and the work performed;

- the cost of the claim and (or) the value of the case to the party, including the impact of the decision on the case on the party's reputation or public interest in the case.

2. In addition, the Grand Chamber of the Supreme Court recalled that the CPC of Ukraine provides the following criteria for determining and allocating legal costs:

1) their reality;

2) necessity;

3) reasonableness of their size, taking into account the complexity of the case and the financial condition of the participants in the case.

3. The Grand Chamber of the Supreme Court also noted the need to comply with the time limits for the submission of evidence on the amount of legal costs. It should be recalled that it is necessary to submit the relevant evidence before the end of the court debate in the case or within five days after the court decision, provided that before the end of the court debate in the case the party made a corresponding statement.

However, please note that the requirement of part eight of Article 141 of the CPC of Ukraine for timely submission of evidence on the amount of court costs paid or to be paid by the party in connection with the case should also apply to cases pending in the simplified proceedings where the courts there is no debate (this is stated in the earlier conclusion of the Supreme court in Resolution of April 16, 2019 in Case No. 817/1889/17.

4. The Grand Chamber of the Supreme Court also emphasized the primary role of the court in the allocation of legal costs.

In particular, the court may reduce the costs of the legal aid to be shared at the request of the other party. In doing so, the latter must prove the inconsistency of the costs claimed by the opponent.

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