The Supreme Court Changes the Practice of Simultaneous Applying Fines and Penalties Once Again

The resolution of the Supreme Court from 02.04.2019 confirmed the possibility of simultaneous charging a fine a penalty for obligation violations. We should recall that the position of the Court has changed several times before, but the Court insisted on the impossibility of simultaneous penalty enforcement more often, as it was considered a violation of the Constitution of Ukraine, Article 61 of which prohibits double prosecution for the same offense.
In a new decision, the Supreme Court states that the simultaneous charging a penalty from a participant in a business relationship that breached an economic obligation under the agreement does not violate Article 61 of the Constitution of Ukraine, since, in accordance with Article 549 of the Civil Code, penalties and fines are forms of a penalty, and accordingly to Article 230 of the Civil Code of Ukraine – different types of penalties. That is, a fine and a penalty are not separate types of legal responsibility, and a different set of sanctions can be applied within the limits of one type of responsibility.

Regardless of the latest practice of the Supreme Court which still allows the imposition of a fine and a penalty at the same time, we should remember that today’s Court does not have stable judicial practice, and everything may change again very soon.

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