HUNGARY Law and Practice Contributed by: István Varga and Viktor Előd Cserép, PROVARIS Varga & Partners
• uphold the contested final and binding deci- sion; and • annul the contested decision in whole or in part and render a new decision or instruct the first or second instance court to proceed anew and render a new decision. Uniformity Complaint The uniformity senate of the Kúria can dismiss the uniformity complaint as inadmissible or annul the contested decision of the Kúria and instruct the adjudicating revision senate of the Kúria to proceed anew and render a new decision. 11. Costs 11.1 Responsibility for Paying the Costs of Litigation Generally, the losing party shall bear the costs incurred by the winning party. If neither side entirely wins or loses, the parties shall bear the costs proportionately to the out- come of the case. There are some exceptions too. For example, if one party incurs unneces- sary costs due to the other party’s unsuccess- ful or unnecessary procedural acts, delays or omissions, the latter party shall bear such costs without regard to the outcome of the case. If it was unnecessary to bring a lawsuit because the defendant acknowledges the claim without submitting a defence, the plaintiff shall bear the defendant’s costs too. The court’s decision on costs, which is includ- ed in the closing part of the decision closing the proceedings, may be challenged by mak- ing recourse against the relevant decision. The amount of court fees cannot be challenged. Attorney’s fees may be challenged. Typically,
parties request either an increase or a reduction in view of the circumstances of the case. 11.2 Factors Considered When Awarding Costs The amount of court fees is determined in accordance with mandatory legal provisions and are a percentage of the amount in dispute. However, there are minimum fees (typically very small amounts) and fee caps too. In first instance proceedings, court fees are capped at HUF1.5 million (approximately EUR4,000), whereas in appeal proceedings court fees are capped at HUF2.5 million (approximately EUR6,500). Parties may either request the reimbursement of the attorney’s fees they in fact incurred (in which case they have to file their respective agreement with their legal representatives and accompa- nying documentation substantiating the costs incurred), or they may seek the reimbursement of default attorney’s fees in accordance with the Fee Decree issued by the Minister for Justice. In accordance with the latter, attorney’s fees are determined in view of the amount in dispute. Minimum fees are also set forth in this case, in relatively smaller amounts. In view of the circum- stances of the case at hand and the quantity and quality of work product, the court may increase or reduce the fees. Proposed Amendment on Reducing Attorneys’ Fees A 2024 development in this area is the publica- tion of a new draft decree by the Ministry of Jus- tice on the fees of attorneys and legal advisors in court and administrative proceedings. The legal provisions currently in force are to be found in Decree 32/2003. (VIII. 22.) IM of the Minister of Justice on attorneys’ fees recoverable in court proceedings. It concerns only those attorneys’ fees in court proceedings that can be established
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