Latest updates

Supreme Court rules on whether legal successors can be sued at place of performance of contract
SMARTLEGAL Schmidt & Partners
  • Hungary
  • 21 July 2020

Due to the protective measures of the EU Recast Brussels I Regulation, persons domiciled in an EU member state can be sued in another member state only in limited cases. One of these exceptions is the jurisdiction granted by the regulation to the courts of the place of the performance of a contract. However, does this exception apply in cases of legal succession or subrogation? The Supreme Court recently addressed this issue, although its decision is doubtful for several reasons.

Common law on horizon? New law reforming litigation enters into force
SMARTLEGAL Schmidt & Partners
  • Hungary
  • 19 May 2020

While COVID-19 has been dominating the headlines, a new act, which entered into force on 1 April 2020 and fundamentally reforms the role of judge-made law in Hungary, has received less attention. This article examines why this landmark bill was passed, the extent to which it means the adoption of common law and what its potential impact will be on litigation in Hungary.

Supreme Court judgment: choice of law by conduct in litigation?
SMARTLEGAL Schmidt & Partners
  • Hungary
  • 07 April 2020

Can parties' conduct during litigation amount to an implied choice-of-law agreement based on EU Regulation 593/2008? This article analyses a recent Supreme Court judgment concerning this question. The court's decision indicates a shift from the well-settled case law concerning the conclusion of contracts by conduct.

Optional jurisdictional clauses: limited effect in Hungary?
SMARTLEGAL Schmidt & Partners
  • Hungary
  • 10 March 2020

Can a party commence litigation in Hungary despite a jurisdictional agreement in favour of a court of a non-EU state which is optional for one of the parties? The Supreme Court recently answered this question in a case which highlights the negative effects of such asymmetric choice-of-court agreements.

Penalty claim without prior reservation? Supreme Court confirms estoppel-based practice
SMARTLEGAL Schmidt & Partners
  • Hungary
  • 18 February 2020

Is a penalty for delayed performance enforceable if the purchaser fails to reserve its rights immediately? Or is enforceability excluded only if the purchaser expressly waives its right? This article analyses the Supreme Court's judgment in a recent construction dispute, in which the court appears to have maintained its estoppel-based practice despite recent legislative changes.

Piercing the corporate veil revisited
  • Hungary
  • 05 March 2013

There are few legal grounds in Hungary on which a shareholder may be held liable for the debts of its company. One such ground is for a so-called 'long-term detrimental business policy'. The Supreme Court recently considered the statutory provision that provides for the piercing of the corporate veil in such an event. The decision marks a turning point in Hungarian company law.

Individuals gain new rights of recourse to Constitutional Court
  • Hungary
  • 06 June 2012

Hungary's new Constitution has resulted in significant changes to the competence of the Constitutional Court, the most important of which introduced the concept of the 'real' or 'individual' constitutional complaint. This measure is expected to enhance the protection afforded to fundamental rights and to change the role that the Constitution plays - not only in the operation of the court system, but also in everyday life.

Recognition of foreign awards: practical problems, possible solutions
  • Hungary
  • 27 September 2011

Award holders that seek to enforce a foreign award in Hungary must be aware of certain procedural pitfalls in the court process. They should also be prepared for some of the surprising effects of a re-awakened piece of legislation that, having lain virtually dormant for 40 years, is causing problems for foreign parties.

Court practice in setting aside arbitration awards
  • Hungary
  • 08 March 2011

A recent, unpublished study, which was prepared by a Supreme Court judge in order to facilitate the amendment of Hungary's arbitration law, has summarised Hungarian court practice in connection with arbitration. It is particularly valuable because it considers a number of court rulings that are unavailable to the public.

Supreme Court Rules on Prescription Deadline for 1925 French Securities
  • Hungary
  • 17 February 2004

The Hungarian Supreme Court recently ruled on the regulations which applied before the entry into force of the Civil Code on the prescription of claims against communal bonds issued by the City of Budapest, the so-called 'League of Nations' loan bonds and the limitation of claims based on state securities.

Sum Paid Under Repealed Judgment is a Debt
  • Hungary
  • 11 November 2003

In a recent labour dispute an employer was ordered to pay a sum of money to its employee, but after it had done so the judgment was overturned by the Supreme Court. The employee argued that the employer was not entitled to be reimbursed accordingly, but the Supreme Court disagreed.

New Rules for Calculating the Winning Party's Attorneys Fees
  • Hungary
  • 16 July 2002

A recent decree sets out new rules for calculating the full costs of litigation proceedings. Controversially, it leaves the courts free to determine not only the amount of the costs of proceedings due to the winning party, but also whether the mandate fee agreed by the winning party and its legal representative is excessive.

Supreme Court Declares State's Limited Freedom to Contract
  • Hungary
  • 19 March 2002

A landmark decision has ended a long-running legal dispute between the state and the Budapest Metropolitan Municipality over a financing agreement for the construction of a new metro line. The court declared that the government must not assume a payment obligation encumbering the central budget without the Parliament's prior approval.

Domain Name of Portal Web Site under Dispute
  • Hungary
  • 16 January 2001

The Metropolitan Court of Budapest has granted a preliminary injunction requesting that the internet service provider subsidiary of Hungary's biggest telecommunications company suspend use of its domain name pending the binding resolution of a trademark litigation case involving another Hungarian entity.

Overview (September 2000)
  • Hungary
  • 19 September 2000

Including: Constitutional Background; The Court System; Jurisdiction; Commencing an Action; Warrants for Payment; Preliminary Injunctions; Representation; Dismissal of a Lawsuit; Judgments; Appeals; Re-opening of a Case; Protest on Legal Grounds; Costs; Enforcement of Foreign Judgments

State Found Responsible for State Bonds Issued Prior to Second World War
  • Hungary
  • 18 July 2000

In May 2000 the Supreme Court of Hungary held that the Hungarian state must pay out in forints the value of a state bond which was issued in 1924 and expired in 1979. In doing so, it rejected the legal arguments of the Ministry of Finance and affirmed a Metropolitan Court judgment delivered last year.

Claims Arising out of Breach of Privatization Tender Rules may be Judicially Enforced
  • Hungary
  • 31 March 2000

In a landmark case, the Supreme Court has held that losers in a privatization tender have standing to bring a claim for violations of tender rules, but may not be judicially proclaimed as the winner.

Péter Korózs
SMARTLEGAL Schmidt & Partners
  • Budapest
  • Hungary
Schoenherr
Schoenherr
SMARTLEGAL Schmidt & Partners
Contributing office