HUNGARY Law and Practice Contributed by: Tamás Éless, Sarolta Édua Szabó, Ulrike Rein and Zsolt Farkas, Oppenheim Law Firm
er interest. An arbitral tribunal is generally entitled to award default interest, but the particulars depend on the relevant provisions of the law applicable to the merits. The arbitral tribunal must render a decision on the costs (including the arbitration fees and the legal costs) and the allocation of such costs if either of the parties so requests. The decision on the costs and the allocation thereof shall be contained in the final award or the order terminating the proceeding. The Hungarian Arbitration Act does not contain any express provision on cost allocation. In general, the costs are allocated by the arbitral tribunal in propor - tion to the relative success or failure of the parties. In arbitral proceedings administered by the Commer - cial Arbitration Court under its Rules, the general rule for cost allocation is that the costs shall be borne by the unsuccessful party to the extent it was unsuc - cessful, although the arbitral tribunal may deviate from this general rule in justified cases. If it deviates from the general rule, the arbitral tribunal shall take into account the parties’ conduct throughout the proceed - ings in fostering or hindering those proceedings and the settlement of the dispute. 11. Review of an Award 11.1 Grounds for Appeal Under Hungarian arbitration law no appeal against the merits of the award is available. Within 30 days from the receipt of the award and sub - ject to the notification of the other parties, the parties may request the arbitral tribunal to: • correct a typographical or calculation error in the award; • provide an interpretation in relation to a specific part of the award; or • supplement the award with regard to a claim presented during the proceeding upon which the arbitral tribunal failed to rule.
An award rendered in an arbitral proceeding seated in Hungary may only be challenged by an application to set aside the award. The request for setting aside shall be submitted to the Budapest Metropolitan Court within 60 days from the receipt of the award by the requesting party. The court may set aside the award only if the party requesting the setting aside proves that: • one of the parties to the arbitration agreement did not have legal capacity or capacity to act; • the arbitration agreement is invalid according to the rules of the law to which it has been submitted, or in the absence of such submission is invalid under Hungarian law; • a party was not given proper notice of the appoint - ment of an arbitrator or of the arbitral proceedings, or was otherwise unable to present its case; • the award was rendered in relation to a dispute that was not contemplated in or falls outside the scope of the arbitration agreement, provided that if the decisions on matters submitted to arbitration can be separated from those not so submitted, only the part of the award that contains decisions not submitted to arbitration may be set aside; or • the composition of the arbitral tribunal or the arbitral proceedings did not comply with the agreement of the parties, unless the agreement contradicts the mandatory rule of the Act, or in the absence of such agreement did not comply with the provisions of the Act. The setting aside of the arbitral award can also be ordered if the Budapest Metropolitan Court finds that: • the subject matter of the dispute is non-arbitrable under Hungarian law; or • the award is contrary to Hungarian public policy. The Hungarian Arbitration Act introduced a retrial pro - ceeding as a new type of remedy against an arbitral award, which can be initiated up to one year following the receipt of the arbitral award. The party requesting the retrial proceeding shall refer to facts or evidence that it could not submit in the initial proceeding for rea - sons that were not its own fault, provided that the sub - mission of such facts or evidence could have resulted in a more beneficial award. If the retrial is permitted,
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