When Not to File a Lawsuit in Ukraine: What to Assess Before Going to Court

“Sometimes the best legal strategy is not to file a claim.” This may sound unexpected from advocates, but court is not always the fastest or most cost-effective route. Whether to file a lawsuit depends on more than whether you are right. It also matters how long the dispute will take, how much it will cost, whether the judgment can be enforced and whether the proceedings will create more risks than benefits.

Here is what to assess before going to court, what the alternatives are and when a claim is still necessary.

Four questions before going to court

1. Is time running out?

The general limitation period is three years (Article 257 of the Civil Code of Ukraine). It starts to run from the day the person learned or could have learned of the violation of their right or of the person who violated it (part 1 of Article 261 of the Civil Code).

• the court will accept a claim even after the limitation period has expired (part 2 of Article 267 of the Civil Code), but if the other party applies for the limitation period to be applied before the judgment, this is a ground for refusing the claim (parts 3–4 of Article 267), unless the court finds the reasons for missing it valid (part 5);
• an action by the debtor evidencing acknowledgement of the debt interrupts the running of the limitation period, after which it starts to run anew (parts 1 and 3 of Article 264 of the Civil Code);
• Law No. 4434-IX of 14 May 2025 deleted item 19 of the Final and Transitional Provisions of the Civil Code; the law entered into force on 4 September 2025. If your limitation period fell within the period of martial law, it is worth calculating the remaining time with an advocate.

So before choosing negotiations or mediation, find out how much time is left. Conducting mediation does not affect the running of the limitation period (part 2 of Article 3 of the Law of Ukraine “On Mediation”), so sometimes a claim has to be filed precisely so as not to miss the deadline.

2. How much will the dispute cost?

The first mandatory payment is the court fee. In 2026, for a property claim in a civil case, an individual or an individual entrepreneur pays 1% of the value of the claim, but not less than UAH 1,331.20 and not more than UAH 16,640; a legal entity pays 1.5%, but not less than UAH 3,328 and not more than UAH 1,164,800 (item 1 of part 2 of Article 4 of the Law of Ukraine “On Court Fee”). If the claim is filed electronically, the rate is multiplied by 0.8 (part 3 of Article 4).

On top of the fee come the costs of an advocate, expert examinations and translations, and if the case goes through appeal and cassation – the fees for those appeals too. It also matters who pays in the end: the court fee is allocated between the parties in proportion to the claims granted (part 1 of Article 141 of the Civil Procedure Code of Ukraine (CPC)), and if the claim is refused, other court costs related to the case are borne by the claimant (item 2 of part 2 of Article 141 CPC). More on the rates – in the article “Statement of Claim in Ukraine”.

3. Can the judgment be enforced?

A judgment in your favour does not yet mean you will get the money. As a general rule, an enforcement document may be submitted for compulsory enforcement within three years (part 1 of Article 12 of the Law of Ukraine “On Enforcement Proceedings”). If the debtor has no property that can be levied and the search for such property has been unsuccessful, the enforcement document is returned to the judgment creditor (item 2 of part 1 of Article 37 of the Law). It may be resubmitted within the time limits set by Article 12 (part 5 of Article 37).

So before filing a claim, find out whether the debtor has property, funds in bank accounts or receivables, and whether they have started moving them out. If there is such a risk, you can ask the court to secure the claim – either together with the claim or before filing it.

4. How long will the proceedings take and what risks will they create?

First instance, appeal and cassation can stretch over years. All this time the dispute consumes money, time and attention – yours or your company’s management’s. The proceedings may also permanently damage business relationships, provoke counterclaims or make the conflict public.

Alternatives to court

Sometimes it is far more effective to settle a dispute without years of litigation:

• a substantiated demand (claim letter). A clearly stated position with a calculation and references to the contract and the law often prompts the debtor to perform the obligation. If pre-trial settlement of the dispute took place, information about it is given in the statement of claim (item 6 of part 3 of Article 175 CPC), so a written demand will also be useful in court;
• negotiations and amending the contract. Deferral, payment by instalments, debt restructuring or a new delivery schedule are often more beneficial than a dispute. Put the arrangements in writing – an additional agreement or a repayment schedule. A document signed by the debtor may evidence acknowledgement of the debt and thus interrupt the running of the limitation period (Article 264 of the Civil Code). More – contract disputes and debt recovery;
• mediation – an out-of-court, voluntary and confidential procedure in which the parties, with the help of a neutral, independent intermediary – a mediator – try to settle the dispute through negotiations (items 2 and 4 of part 1 of Article 1 of the Law “On Mediation”). Decisions are made exclusively by the parties themselves (part 2 of Article 8). Mediation can be conducted before going to court, during court proceedings and during enforcement of a judgment (part 2 of Article 3), and in a civil case the parties may reconcile, including through mediation, at any stage of the proceedings (part 7 of Article 49 CPC);
• settlement agreement. If a claim has already been filed, the parties may settle the dispute on the basis of mutual concessions (part 1 of Article 207 CPC). If the settlement agreement is concluded before the court of first instance adopts its decision, the claimant is refunded 50% of the court fee paid, and if the agreement was reached as a result of mediation – 60% (part 1 of Article 142 CPC, part 3 of Article 7 of the Law “On Court Fee”). More – in the article “Settlement Agreement in Court in Ukraine”;
• settling the dispute with the participation of a judge – with the consent of the parties, before the consideration of the case on the merits begins (Article 201 CPC).

When a claim is still necessary

Avoiding court does not mean giving up protection. A claim should be filed without delay if:

• the limitation period is running out and the debtor does not acknowledge the debt;
• there is a risk that the other party will move out property or funds;
• the other party does not respond to demands or negotiations have reached a deadlock;
• the result you need can only be achieved through the court.

What to include in the claim, what to attach and how much to pay – in the article “Statement of Claim in Ukraine”.

Our approach

Our task is not to file as many claims as possible, but to find the route that best serves the client’s interests. So before preparing a claim, we assess the time limits, costs, prospects of enforcement and risks, and suggest alternatives where they are more beneficial. Sometimes professional advice begins with the words: “I do not advise you to file a claim right now.”

Frequently asked questions

Can I file a claim if the limitation period has expired?

Yes, the court will accept the claim (part 2 of Article 267 of the Civil Code). But if the other party applies for the limitation period to be applied before the judgment, the court will refuse the claim unless it finds the reasons for missing it valid (parts 3–5 of Article 267).

Will the court fee be refunded if the parties reach an agreement during the proceedings?

Partly. If the settlement agreement is concluded before the court of first instance adopts its decision, 50% of the court fee paid when filing the claim is refunded, and if the agreement was reached as a result of mediation – 60% (part 1 of Article 142 CPC).

Do I have to send a claim letter before filing a lawsuit?

In most cases, no. The statement of claim gives information on pre-trial settlement of the dispute if it took place, in particular where the law establishes a mandatory pre-trial procedure (item 6 of part 3 of Article 175 CPC). Even so, a non-mandatory demand often helps resolve a dispute without going to court.

Will mediation harm my position if no agreement is reached?

Participation in mediation cannot be regarded as an admission of guilt or of the claims, or as a waiver of the claims (part 3 of Article 5 of the Law “On Mediation”). Participants in mediation may not disclose information that became known to them during mediation, unless otherwise provided by law or agreed by all parties in writing (part 1 of Article 6), and the mediator may not be questioned as a witness about such information (part 5 of Article 6). Just remember that mediation does not affect the running of the limitation period (part 2 of Article 3).

This material is general in nature and is not a substitute for advice on your specific situation.

In a dispute with a counterparty or a debtor? An advocate will assess whether it is worth going to court → Civil and commercial disputes · Debt recovery · Contract disputes