Appealing administrative fines

What is happening

Most clients come to us with the decision in hand and one question: pay or fight. For a company the fine under many provisions is substantial, and the same episode often leads to separate fines for the director and the employee in charge.

Another common story is that the company learns of the case only after the decision has been made. The notice went to an old address or got lost in the post room, the protocol was drawn up with nobody from the company present, and there was no chance to give an explanation.

Sometimes the company does not dispute the breach itself: a foreign worker's paperwork was late, a receipt was not issued, the shop sign lacks required details. Then the conversation is about proportionality rather than annulment: a warning instead of a fine, a lower amount, one penalty instead of several.

What the law says

• Hearings and appeals are governed by the Code of Administrative Offences: an appeal against a decision must be lodged within ten days of the date the copy was served or received. If the deadline was missed for a good reason, an application to restore it is made.
• Where the appeal goes depends on who issued the decision and against whom. Fines on companies and sole traders connected with their business are, as a rule, challenged in the commercial (arbitrazh) court under the Commercial Procedure Code (APK), while a decision against the director as an official goes to a court of general jurisdiction or to a higher official.
• Liability is subject to a limitation period: the general rule under the Code of Administrative Offences is 60 calendar days, and it is longer for many offences. A decision issued outside that period is unlawful.
• For a small or medium-sized business, a fine for a first offence uncovered during state control is replaced with a warning if the conditions of the Code are met. In exceptional circumstances a fine may be set below the minimum of the sanction.
• Where several breaches are found during a single inspection, the Code in a number of cases requires one penalty to be imposed rather than a fine for each episode.
• For many offences, a fine paid within 20 days of the decision may be paid at half the amount. This matters when choosing tactics, so that the discount is not lost while waiting for a ruling.

What we do

• We check the dates: when the decision was received, whether the limitation period has run, and whether there is still time to appeal or an application to restore the deadline is needed.
• We request and study the case file: the protocol, reports, photos and video, statements and proof that the company was notified.
• We look for flaws in procedure and evidence: the wrong person charged, an incomplete description of the offence, the wrong provision applied, no proper notice.
• We draft the appeal or the application to the commercial court, with evidence and reasoning for each episode.
• Where the dispute is about the amount, we make the case for a warning instead of a fine, a reduction, insignificance of the breach or a single penalty for several episodes.
• We represent the company and the official when the appeal is heard and, where needed, at the next level.
• Afterwards we suggest what to change in your processes so the same episode does not happen again.

What we will need from you

• The protocol, the decision and any rulings in the case, together with envelopes or screenshots from your online account showing the date of receipt.
• The inspection report, any order to remedy breaches and other inspection documents, if the fine resulted from an inspection.
• Any explanations already given by the company and its staff, and correspondence with the authority.
• Documents on the substance of the episode: contracts, orders, logs, receipts, photos, anything that shows what actually happened.
• Information on whether the company qualifies as a small or medium-sized business and whether it has been fined for similar breaches before.
• Powers of attorney to represent the company and the official.