Court Rejects UAH 90 Million Governance Damage Claim Against Senior Public Official

Written By Stanislav Batryn

Max Batryn, Lions Lawyers

Lions Lawyers successfully represented a senior public official in proceedings brought by the state seeking approximately UAH 90 million in damages arising from an allegedly unlawful governance and procurement decision.

The issue

The proceedings concerned a decision relating to the procurement of equipment subsequently supplied to Ukrainian public authorities and used in their operational activities.

The state alleged that the procurement decision had been unlawful and had resulted in approximately UAH 90 million in financial loss, for which our client should bear personal responsibility.

The case therefore raised a broader issue concerning the circumstances in which a public official may be held personally liable for financial consequences allegedly resulting from governance and procurement decisions.

Our position

Lions Lawyers challenged both the alleged unlawfulness of our client's conduct and, fundamentally, the existence of the claimed damage.

Our legal team presented evidence demonstrating that the equipment had not represented a loss to the state. It had been actually deployed and used by public authorities, generating operational and financial benefits exceeding its acquisition value.

Accordingly, the state's case could not be established merely by challenging the underlying decision-making process. Liability required proof of actual loss and a sufficient causal connection between the conduct attributed to the official and the damage claimed.

The court's decision

Following extensive evidentiary proceedings, the court rejected the claim against our client.

Of particular significance, the court determined that the alleged UAH 90 million loss had not occurred.

The evidence concerning the subsequent use and economic value of the equipment was central to demonstrating that the state had not suffered the damage on which its claim was based.

As a result, our client was found not liable for the alleged losses.

Why the decision matters

The case illustrates an important distinction between scrutiny of a public official's decision and the legal requirements for imposing personal liability for its alleged financial consequences.

A contested governance or procurement decision does not, by itself, establish compensable damage. Actual loss must be proved, together with the other elements necessary to establish liability.

The case also demonstrates the importance of examining the real economic consequences of the transaction rather than assessing the alleged loss in isolation from the subsequent use and value of the assets acquired.

In addition to defending the UAH 90 million claim, Lions Lawyers prepared and advanced evidence concerning reputational and legal harm suffered by our client as a consequence of the proceedings.

Certain details of the matter have been anonymised to preserve client confidentiality.

Stanislav Batryn
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