Dispute Over Loss of Military Property by Serviceman: The Supreme Court Determines Jurisdiction

A dispute over compensation for damage caused to the state by a serviceman in connection with the loss of military property during military service is a matter concerning the performance of public service. Such a dispute is subject to consideration in administrative proceedings, even if a claim for damages is filed after the person has been discharged from military service. This conclusion was reached by the Supreme Court, composed of a panel of judges from the First Judicial Chamber of the Cassation Civil Court.

On June 3, 2026, the Cassation Civil Court of the Supreme Court reviewed, under simplified claim proceedings, the cassation appeal of a Military Unit in a case involving a claim by the Military Unit against an individual for compensation for damage caused to the state as a result of the respondent’s loss of military property.

To support the claims, the plaintiff cited that the respondent, in a role related to public service as a materially responsible person, caused damage to the state represented by the military unit by losing property during the execution of duties associated with the role of a serviceman.

The initial court, whose conclusions were upheld by the appellate court, terminated the proceedings in the case because the dispute between the parties arose concerning compensation for damages caused by the respondent to the state during military service and is subject to consideration under the rules of administrative proceedings.

The Supreme Court concurred with the decisions of the lower courts, highlighting that the dispute between the parties arose due to the respondent’s military service. During this service, as a result of improper performance of official duties, the respondent lost military property, thereby causing damage to the state.

As per Article 2 of the Law of Ukraine "On Military Duty and Military Service," military service is a state service of a special nature.

Legislation defines military service as public service.

The respondent, in a role connected to public service as a materially responsible person, caused damage to the state during the execution of powers directly related to the performance of duties and functions of a serviceman.

The Supreme Court stressed that the legal relations arising between the parties are administrative-legal. Judicial oversight in such disputes should be carried out by administrative courts since the claim pertains to liability for damage caused during the performance of public service duties.

The Supreme Court affirmed the consistency of its practice, referring to the conclusions of the Grand Chamber of the Supreme Court (rulings in cases No. 11-892app18, No. 14-481cs18, and No. 636/93/14-c), which state that property disputes of this nature fall within administrative jurisdiction. The appellant’s arguments regarding the exclusively civil-law nature of liability were dismissed as unfounded.

Further information and the text of the Supreme Court ruling dated June 3, 2026, in case No. 291/41/22 (proceeding No. 61-9385sv25) can be accessed at the link.

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