The Kyiv City Commercial Court has decided to collect a UAH 1.3 million fine and UAH 968,000 in penalties from LLC “Company “Valley of Dreams”” for its failure to deliver uniforms for military personnel to the Kyiv Regional State Administration on time and in full. This decision was made on July 17.
On November 1, 2022, the Department of Civil Protection and Defense Work of the Kyiv Regional State Administration ordered uniforms for the military from “Valley of Dreams” for the amount of UAH 38 million. According to the “Prozorro” system, these were winter suits (sets of windproof and waterproof pants and two jackets), winter boots with high boots, gloves, and thermal underwear. The contract was awarded without competition.
According to the contract, the delivery period of the goods was 30 calendar days from the date of conclusion of the agreement, but no later than December 10, 2022. However, as the court found out, the company delivered only part of the goods for a total amount of UAH 11.4 million, while the rest of the order for UAH 26.6 million was never fulfilled.
On December 26, 2022, the Regional State Administration Department sent a claim to "Valley of Dreams" with a notice of termination of the contract and a demand to pay penalties within 5 days. The company responded that it was unable to fulfill its obligations due to force majeure circumstances.
The prosecutor's office and officials filed a lawsuit with the court, demanding to recover UAH 1.38 million in penalties and UAH 1.86 million in fines from the company. The court found that Dolyna Mriy failed to prove force majeure, referring only to the letter of the Chamber of Commerce and Industry of Ukraine dated February 28, 2022, which did not prove the impossibility of fulfilling obligations precisely due to martial law. In addition, the contract was concluded on November 1, 2022, already during martial law, and the letter of the Chamber of Commerce and Industry was published 8 months before that.
The court also paid attention to the contract price, the behavior of LLC “Valley of Dreams” and its property status, taking into account that the amount of penalties almost 4 times exceeded the company's net profit from the sale of goods for 2022 and 2023. Taking into account the principle of fairness and the balance of interests of the parties, the court decided to reduce the amount of the penalty and fine by 30%, ordering the company to collect UAH 1.3 million in fines and UAH 968 thousand in penalties.
The founder of LLC “Company “Valley of Dreams” is Igor Grylyuk. It is known that there is an online store “Valley of Dreams” in Kyiv, which sells office supplies and stationery. The company and the online store have the same phone numbers.
