Come Back Alive Foundation wins court case against unreliable supplier and receives compensation

In 2023, the Come Back Alive Foundation signed an agreement with a supplier for telecommunications backpacks as part of another project to support the military. However, the company failed to fulfill its contractual obligations on time.  

At the end of 2024, the foundation took the case to court and was awarded 209,096 hryvnias in compensation.  

The First Lawsuit by Come Back Alive Foundation 

The contractor was obligated to deliver equipment intended to enhance the military’s capabilities within a specific timeframe. However, it failed to fully meet the agreement’s conditions. The company cited issues such as blocked international shipments, delays in the supply of imported components, power outages, frequent air raid alerts, and urgent orders from the Armed Forces of Ukraine as reasons for the delay.  

«There were clear deadlines, and the supplier failed to meet them. Because of this, we suffered certain reputational losses, as the project was delayed. Other projects were also affected since we couldn’t launch new ones until the delayed one was completed. Both we and the military were relying on this equipment to arrive on time.  

This lawsuit is about being willing to take responsibility and hold accountable those who neglect theirs. We represent the interests of our donors and partners, whose priority is ensuring that funds are used efficiently», — said Taras Chmut, Director of Come Back Alive Foundation.  

The foundation initially offered the contractor alternative, out-of-court solutions to resolve the dispute, including paying penalties for the delay. Two other contractors, who also failed to meet deadlines, agreed to these terms. However, this particular supplier refused.  

How Disputes Are Usually Resolved  

«In reality, this is not the first time a contractor has violated an agreement with Come Back Alive Foundation. However, this is the first time we had to go to court to protect our rights and legal interests. This is not just about violating laws and contract terms. The agreements we sign often involve procurements aimed at strengthening national defense, mobilization readiness, and protecting civilians under martial law.  

Thus, violating such agreements harms not only Come Back Alive Foundation but also the country as a whole, given the foundation’s nonprofit nature», — explained Kateryna Bondar, Head of the Legal Department at Come Back Alive Foundation.  

She added that Come Back Alive Foundation has a reliable system to protect against dishonest suppliers, offering various conflict resolution mechanisms. However, in this case, the contractor refused to compromise.  

Since its inception, the foundation has received 35,372,708 hryvnias in penalties from suppliers. 

This includes:  

– 23,466,230 hryvnias in direct financial payments,  

– 8,259,100 hryvnias worth of free assets provided by contractors,  

– 3,647,378 hryvnias in discounts granted to the foundation.  

In this lawsuit, Come Back Alive Foundation initially sought 1,057,280 hryvnias in compensation, consisting of 644,280 hryvnias in penalties and 413,000 hryvnias in fines.  

The court partially satisfied the foundation’s claims, ruling that the supplier must pay:  

– 126,496 hryvnias in penalties  

– 82,600 hryvnias in fines.