HUNGARY Law and Practice Contributed by: John Fenemore, Szabolcs Mestyán, Adrienn Mándoki and Nóra Kertai, Lakatos, Köves & Partners
Recognition and Enforcement of a Judgment Rendered in a Third Country Judgments rendered in the context of insolvency pro - ceedings in a jurisdiction that is not an EU member state can only be recognised and enforced in Hungary if: • the relevant court did have jurisdiction; • the judgment has become final in the jurisdiction of origin; • none of the potential grounds for non-recognition applies; and • there exists reciprocity between Hungary and the jurisdiction of origin. The potential grounds for non-recognition are as fol - lows. • Recognition of the judgment would violate Hungar - ian public policy. • The party against whom the judgment was made did not attend the proceedings in person or by way of a representative as the summons, statement of claim or other document on the basis of which the proceedings were instituted had not been properly served at their domicile or residence in a way or in a timely fashion to allow them adequate time to prepare their defence. • Proceedings have commenced with respect to the same legal matter and factual background between the same parties before a Hungarian court or other authority prior to the commencement of the foreign proceedings. • A final judgment with respect to the same legal matter and factual background between the same parties has been rendered by a Hungarian court or other authority. • A final judgment with respect to the same legal matter and factual background between the same parties has been rendered by a court or other authority in a third jurisdiction (ie, a jurisdiction other than Hungary and the jurisdiction where the court whose judgment is to be enforced in Hungary sits) prior to the date of the relevant judgment of the court, provided that the judgment rendered in that third jurisdiction complies with all requirements concerning enforceability in Hungary.
proceedings duly opened in another member state, as well as compositions approved are recognised in Hungary with no further formalities. Recognition and enforcement may only be refused where the effects of such recognition or enforcement would be manifestly contrary to public policy, in particular the fundamental principles or the constitutional rights and liberties of the individual in Hungary. Other types of judgments rendered in the context of recognised insolvency proceedings are generally recognised and enforced without any special proce - dure being required in accordance with the Brussels I Regulation (Regulation (EU) No 1215/2012 of the European Parliament and of the Council on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters). This Regulation offers a wider range of grounds for non-recognition. • If such recognition is manifestly contrary to public policy in Hungary. • Where the judgment was given in default of appearance, if the defendant was not served with the document which instituted the proceedings or with an equivalent document in sufficient time and in such a way as to enable them to arrange for their defence, unless the defendant failed to commence proceedings to challenge the judgment when it was possible for them to do so. • If the judgment is irreconcilable with a judgment given between the same parties in Hungary. • If the judgment is irreconcilable with an earlier judgment given in another EU member state or in a third country involving the same cause of action and between the same parties, provided that the earlier judgment fulfils the conditions necessary for its recognition in Hungary. • If the judgment conflicts with the provisions of the Brussels I Regulation dealing with jurisdiction in matters relating to insurance, jurisdiction over consumer contracts, jurisdiction over individual contracts of employment or exclusive jurisdiction.
180 CHAMBERS.COM
Powered by FlippingBook