Lawsuits by public services against non-payers - truth and fiction

There is a new scandal in social networks – citizens of the DPR are frightened by the fact that deputies statutory released lawsuits by public cervices against non-payers of services from payment of court fees.

Here is what they write on one of the websites:

"At the beginning of the autumn session of the People's Council, the deputies adopted simultaneously in two readings a bill "On Amending Article 5 of the Law of the Donetsk People’s Republic "On Court Fees". As the website of the parliament reports, after signing the document by the Head of the DPR, state or municipal housing and public utilities will be immune from payment of court fees when filing lawsuits to collect debts. It is logical to assume that once the law is adopted only now it means the utilities need this allowance. For example, when preparing a massive campaign to collect debts, which without approval from the "top" most likely in the current realities would be impossible."

Yes, indeed, such amendments to the law "On Court Fees", adopted at the session of the People's Council on August 5, 2017, do take place. But they were adopted, first of all, with the purpose of preventing the situation, when already living in a constant shortage of funds, which sometimes is not enough even for paying wages to workers, public services simply cannot afford to pay court fees at this difficult time! Court fees subsequently, subject to satisfied claims, are subject to recovery in their favor of public services by a non-payer. Often, it takes a long time to wait for return of these funds. So it would be more rational to simply grant housing and public services a remission of court fees. Though according to the previous legislation, the court, taking into account the material and property status, could free a plaintiff from payment of the court fee.

And as you can see, not only housing and public utilities have been granted this remission, but many other state (budgetary) organizations – schools and hospitals, fire departments, ministries and the People's Council itself. That is, there is no specially organized campaign to ease litigation against non-payers – just optimization of financial relationships.

As for the increasing number of lawsuits from a wide range of utility service providers – from energy utilities and heating networks to operators, it really has grown over the past six months, as statistics show. However, this is mainly due to the fact that heat and power supply companies have only recently been transferred to the state administration, and the previous calls of the republic's leadership not to pay "to Ukraine" for heat and electricity, were understood by many citizens as a call not to pay at all. Yes, today many do not pay – this is understandable. Someone does not pay because of the meager family budget, some simply do not live on the territory of the DPR, but some continue the sad "tradition" of non-payment – some of the defendants have been accumulating debts for decades, that is, long before all force majors, before the war. And if commercial bank debts are just profit squeeze of these structures, debts to the public sector are a direct underfunding of one of the most important spheres of our life. Hence we have unrepaired water pipes, unpaid salaries of janitors or electricians, not rectified leaks in roof, ugly lawns instead of flower beds – this is disaster. This is disaster with which our utility service workers are often fighting even at the cost of their lives.

Supplier companies pay individual attention to every debtor, in most cases trying not to bring the case to court: they offer debt readjustment, debt repayment by installments, and other ways of solving the problem.

It’s unclear who and why they need to make a fuss about the lawsuits of public services. For the judiciary of the Donetsk People's Republic is focused on examining carefully the circumstances of each claim of public service utilities against non-payers.

Commentary by Liliya Reznikova the Head of the Civil Chamber of the Supreme Court of the Donetsk People's Republic:

One of the possible types of debt collection on utility bills is the appeal by municipal organizations to a court with a request for the issuance of a court order. Such an appeal is being considered by a court within three days without summoning the debtor to court. After the court order is issued, a court shall no later than the next day send a copy to a debtor.

A debtor has the right to apply to a court within 10 days from the date of receipt of a copy of the court order with a request for its cancellation.

Based on the results of the consideration of the application for the cancellation of the court order, a court has the right to render one of the following decisions:

·      to leave an application unsatisfied;

·      to revoke the court order and to explain the applicant his right to apply to a court with a suit;

·      to amend the court order.

After the vacation or amendment of the court order, a previously issued court order is not enforceable.

Courts in the consideration of each claim (suit) carefully examine the circumstances of a case and, taking into account the evidence provided, confirming the volume of services provided, tariffs, at the request of the participants in the process in applying the limitation period, render court decisions.

Bear in mind that, in accordance with Art. 373 of the Code of Civil Procedure of Ukraine, provided necessary circumstances that complicate the execution of a decision (illness of the debtor or members of his or her family, natural disasters, etc.) at the request of the state executor or at the request of the party, a court that issued the writ of execution, may grant stay of justice or extension of the deadline.

 Original