Litigation, SMARTLEGAL Schmidt & Partners updates


Contributed by SMARTLEGAL Schmidt & Partners
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.

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