HUNGARY Law and Practice Contributed by: Tamás Éless, Zsolt Farkas, Sarolta Szabó and Lili Bischof, Oppenheim Law Firm
8. Settlement 8.1 Court Approval
Inspection of hearing transcripts is subject to the rules on access to documents. Those other than the parties, intervenors, their representatives, experts or the prosecutor may only receive information if they demonstrate a legal interest in the outcome of the proceedings. 7.7 Level of Intervention by a Judge In Hungarian civil proceedings, the judge plays an active procedural role – setting the hearing, manag- ing evidence and the evidentiary procedure, question- ing parties and witnesses, and defining the issues for decision. Courts also have an important role in case manage- ment on the merits. This means that if a statement made by a party is incomplete, or the party did not provide evidence regarding a relevant fact, the court informs the parties accordingly. The court also informs the parties if it interprets a legal provision invoked by the parties differently, it detects any fact that it shall take into account ex officio, or it is not bound by the party’s claim by virtue of law. 7.8 General Timeframes for Proceedings It generally takes around six to eight months from the submission of the statement of claim for the court to close the preparatory stage. In simple cases, the judgment is issued at the first oral hearing of the evidentiary stage, while in more com- plicated matters, especially if witnesses or experts must be heard, more than one oral hearing may be necessary. The first-instance judgment in a simple case can be expected to be issued within eight to ten months of filing the claim. In more complicated cases, a first- instance judgment may be expected within 18-24 months. The appeal procedure may take six to ten months from the issuance of the first instance judgment.
If the parties agree to settle a lawsuit, they may decide to submit the settlement agreement for approval to the court or not to submit a settlement agreement but request the court mutually to terminate the proceed- ings. If the parties decide to submit their settlement agree- ment to the court, court approval is required to settle the lawsuit. Approval is only granted if the settlement complies with the statutory provisions relevant to the subject matter of the case. Court-approved settle- ments have the same effect as a judgment. 8.2 Settlement of Lawsuits and Confidentiality The CCP contains no explicit provision on the confi- dentiality of settlements; however, an order approving or rejecting a settlement may only be rendered at a hearing since the parties’ declarations must be made orally before the court. As hearings are, in principle, public, the settlement of the lawsuit may only remain confidential if the court has ordered a closed hearing, in accordance with the relevant rules. Nevertheless, courts do not publish orders approving settlements, not even in anonymised form. 8.3 Enforcement of Settlement Agreements As court-approved settlements have the same effect as a judgment, they are equally enforceable under the same rules as judgments. 8.4 Setting Aside Settlement Agreements Both the court order approving the settlement and the order refusing the approval can be challenged by an appeal by either party. The court of second instance is entitled to set aside the settlement and order the court of first instance to conduct the proceedings if approving the settlement was against the law.
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