Dr Richard Schmidt

Richard Schmidt



Can a judicial error create Hungarian jurisdiction if the place of performance is abroad?
Hungary | 04 May 2021

This article analyses a recent Supreme Court decision concerning the Hungarian courts' jurisdiction in a dispute arising from an international sales contract. Among other things, the court established that in the absence of a domestic place of performance, the Hungarian courts do not have jurisdiction over a dispute arising from an international sales contract.

Excessive res judicata effect – are test cases in danger?
Hungary | 23 March 2021

The Supreme Court recently concluded that the res judicata effect of a final judgment precludes the claimant from starting new litigation on the same legal grounds for a part of the claim which was not sought in the preceding lawsuit. This judgment is a departure from not only the legal literature, but also case law. It remains to be seen how this judgment will affect party autonomy in civil litigation and test cases.

CCP amendment: fairer balance between form and content
Hungary | 23 February 2021

The Civil Code of Procedure, which has been criticised for sacrificing fundamental rights to achieve accelerated civil proceedings, has finally been amended by the legislature. The new provisions make first-instance litigation more flexible and simpler for both parties. This article examines the most important changes as of 1 January 2021 and whether a fairer balance between form and content has been reached in civil litigation.

Can judges control excessive terms in lease agreements?
Hungary | 24 November 2020

Can parties stipulate in a commercial lease that a user charge amounting to three times the monthly rent will apply if the lessee fails to vacate the leased premises? Further, can a judge qualify such an excessive fee as a penalty which the court can reduce? This article analyses a recent Supreme Court decision in order to address these questions.

Does choice of court amount to choice of law?
Hungary | 06 October 2020

Does commencing litigation in England with regard to a Hungarian project amount to a choice of English law? How much of a role do the parties' procedural actions play in the choice of law applicable to a contract? This article analyses a recent Hungarian Supreme Court judgment which, among other things, addresses the issue of tacit choice of law.

Supreme Court rules on whether legal successors can be sued at place of performance of contract
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
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?
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?
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
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.