Court dispute in Chernivtsi: municipal premises, two appeals and unclear roles of the city council

The legal battle over an 83.4-square-metre municipal premises at 5 Stepan Bandera Street in Chernivtsi is entering a new phase. After the Commercial Court issued a ruling, both sides of the conflict filed appeals, indicating a lack of final consensus.

Vladyslava, the lawyer for entrepreneur Larysa Nahirnyak, states her disagreement with the first-instance verdict and highlights a significant procedural nuance: the lease agreement with her client was concluded by the Department of Municipal Property, whereas the lawsuit to return the premises was filed by the Chernivtsi City Council itself.

Chronology of events and financial losses

The story began in July 2022, when the Department of Municipal Property of the Chernivtsi City Council concluded lease agreement No. 72 with sole proprietor Larysa Nahirnyak. This step became possible after the disqualification of auction participant Nataliia Vargotska, who had submitted the highest bid.

In practice, the premises could only be handed over to Nahirnyak on 1 August 2025, after the completion of previous court hearings. After receiving the keys, she began paying rent and investing funds in repair work.

On 11 February 2026, the Chernivtsi Court of Appeal declared the contract invalid, arguing that Vargotska's disqualification had been conducted without grounds. In response, Nahirnyak turned to the Commercial Court with a demand to reimburse the damages incurred and return the funds spent.

The total amount of the claim was:

• 917,632.73 UAH — expenses for the auction, design documentation, franchise and construction work;
• 100,000 UAH — moral damages;
• 554,838.28 UAH — rent paid.

Verdict that satisfied neither side

On 30 July 2026, the Commercial Court of Chernivtsi Oblast considered case No. 926/1135/26 and partially upheld the claim. However, this decision did not satisfy the entrepreneur's representation.

«Я і моя клієнтка не згодні з рішенням суду. Обов'язково будемо його оскаржувати», — наголосила адвокатка Владислава. ("My client and I do not agree with the court's decision. We will definitely appeal it," emphasised lawyer Vladyslava.)

Since appeals have been filed by both parties, the first-instance decision has not yet entered into legal force.

The problem of identifying the party to the dispute

In addition to the outcome of the trial itself, the lawyer drew attention to another aspect of the case. She noted that it is unclear why the Chernivtsi City Council acted as a party in the proceedings regarding the return of the premises, given that the contractual obligations were placed on the Department of Municipal Property.

The court explained separately in the full text of the decision that the city council, as the owner of municipal property, had the full right to demand its return. However, this duality of roles of local self-government bodies in different proceedings complicates the situation, and the bill for all decisions may ultimately fall on a single budget.

Risk of further lawsuits

The conflict may take on an even larger scale. Vadym Russu, Head of the Department of Municipal Property, explained that rent is accrued until the moment the premises are actually returned via an act. If the tenant does not vacate the object within the established deadline, double rent may be accrued.

In the event of challenging such calculations, the Department plans to turn to court with corresponding claims. This means that after the completion of the appellate review of the current case, the city may face new lawsuits.

Officials do not disclose information on how much money the city has already spent on legal support for these proceedings. Journalists are awaiting official responses to requests and will continue to monitor the progress of the appellate appeals.