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This blog post provides a brief overview of the arbitration procedure in Hungary, which will be relevant for those who carry out business operations in this EU member state.

What you need to know

  • Business dispute resolution by arbitration in Hungary has gained popularity, and this ADR method is viewed as a faster, more independent, professional alternative to government courts.
  • The range of cases that can be considered in Hungarian arbitration courts has recently been expanding due to the simplification of clauses in corporate disputes. The jurisdiction has no requirements for arbitration agreements, except that the agreement must be in writing.
  • The most popular and most sought after arbitration institutions in Hungary are the Permanent Court of Arbitration at the Hungarian Chamber of Commerce and Industry, as well as the Permanent Court of Arbitration for Sport. These institutions deal with both domestic and international disputes.
  • The arbitration process in Hungary takes quite a long time, sometimes a decision can be obtained only two years after the beginning of the proceedings. But often the case does not end there, since any person who, in any way, is affected by the arbitral award, can file a lawsuit with a demand to cancel it. 

Features of proof

Certain traditions and principles have developed for the arbitrators to determine the course of the arbitration process in the EU and to prove. Hungary largely adheres to these traditions and principles which may vary. Accepting, in principle, all the evidence submitted by the parties, the arbitral tribunal then determines the probative value of each of the evidence presented.

This is probably why one of the brightest manifestations of the professionalism of a solicitor in the arbitration process is the development of a strategy for submitting evidence so that it has a proper persuasive effect on the arbitrators.

The arbitrators are vested with considerable discretion in determining the procedure for the presentation of written evidence. Even such technical issues as the number of submitted copies, indication of proof in written explanations of the parties, etc. are important. The timing of the submission of evidence is also essential in the arbitration process in Hungary. 

The arbitrators also consider requests from a party for the disclosure of information by the other party, for organizing the examination of evidence, and for the technical or any other kinds of examinations. 

Trends

In connection with measures to prevent the spread of the pandemic, the use of online technologies has been introduced for arbitration in Hungary. There is a possibility of organizing meetings by the arbitration court in the mode of video or telephone conference. The arbitral tribunal may hear the parties, witnesses or experts using video conferencing systems, or even conduct the entire arbitration process using video conferencing. At the request of one of the parties or on its own initiative, the arbitral tribunal may decide to fix the course of the oral hearing online.

Legal services in the arbitration proceedings in the EU

In case you need to resolve a financial conflict in the EU countries, we recommend that you contact the IQ Decision UK solicitors for professional assistance. Our experts will provide personal advice on the initiation of arbitration proceedings in Hungary or any other jurisdiction at your request, and will provide the necessary legal services.

To sign up for a consultation, please fill out the contact form below.