Judge of the Odessa District Administrative Court, Yu. Kharchenko, made a paradoxical decision that violated the fundamental principle of economic relations.
On October 21, 2014, Judge Yu. V. Kharchenko of the Odessa District Administrative Court made a paradoxical decision that violated the fundamental principle of economic relations—freedom of contract.
The dispute centered on the fact that the State Financial Inspectorate conducted an inspection of public utilities and discovered that the Lanzheron municipal enterprise had failed to enter into a beach maintenance contract with the existing tenant, the Victoria Sports and Recreation Facility, which allegedly resulted in losses of 50 hryvnias for the local budget.
Following this, the State Financial Inspectorate filed a lawsuit demanding that the Lanzheron State Enterprise and the Victoria State Commercial Fishing Facility enter into an agreement and that the Lanzheron State Enterprise collect the amount from the Victoria State Commercial Fishing Facility. In other words, the court ordered the Lanzheron State Enterprise to file a lawsuit! Any lawyer with any degree of competence would say this is utterly absurd.
It is surprising that the court did not even involve the “debtor” PCChF “Victoria” in the case.
The court completely ignored the fact that the company had leased the coastal protection structures (the beaches) since 2003 under a contract that expired in December 2013, and the sites were returned to the owner. During this entire period, KP "Langeron" had not carried out any maintenance or improvement work on the beaches (under the lease agreement, this responsibility is the lessee's).
It's unclear how it's possible to enter into a contract retroactively, and even go to court to recover the debt under such a contract. Moreover, it's absurd that an administrative court would, by its decision, obligate two business entities to enter into a contractual relationship.
In justifying his decisions, the judge cited the provisions of local government legislation. However, the Langeron municipal enterprise is not a local government body and is not authorized to manage or enter into agreements regarding the use of municipal lands or property. The Victoria company entered into a beach lease agreement with the Engineering Protection Department.
The case file contains a letter from the same Odessa Department of Engineering Protection of the City's Territory and Coastal Development, which explains that the conclusion of such equity participation agreements is mandatory only for those beach areas that are not leased.
And despite all of the above, the court grossly violated Article 19 of the Constitution by requiring that something not provided for by law be done, as well as the provisions of the Civil Code regarding the free expression of the will of the parties when concluding transactions.
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