HUNGARY Law and Practice Contributed by: István Varga and Viktor Előd Cserép, PROVARIS Varga & Partners
Statutory Rules on the Framework of Institutional Arbitration in Hungary in the Hungarian Arbitration Act In addition to regulating arbitration law in Hun- gary, the Hungarian Arbitration Act also regu- lates the framework of institutional arbitration in Hungary, including the Commercial Arbitration Court, its presidium, the prerequisites of inclu- sion in the list of recommended arbitrators, the prerequisites of acting as an arbitrator in Hun- gary etc. Legal Framework for the Recognition and Enforcement of Arbitral Awards in Hungary The enforcement of domestic arbitral awards is governed by the Hungarian Arbitration Act, which includes only two grounds for the (ex officio) refusal of the enforcement of domestic awards (non-arbitrability and the violation of public policy). The recognition and enforcement of foreign arbitral awards is governed by the New York Convention. Specific rules on proce- dural aspects are included in the Hungarian Act on Judicial Enforcement and a decree contain- ing additional rules for the implementation of the New York Convention (see 13.4 Procedure for Enforcing Domestic and Foreign Arbitration ). 13.2 Subject Matters Not Referred to Arbitration Non-arbitrable subject matters are: • disputes arising out of consumer contracts (except matters arising out of trust agree- ments); • certain specific (non-commercial, non- pecuniary) types of civil lawsuits regulated in the Code of Civil Procedure (including law- suits concerning personal status, guardian- ship, matrimonial matters, descent, parental responsibility, alimony to minors, certain personality right claims, labour law disputes,
obligation to participate in such conciliations but are free to decide whether they will recognise any decision by the conciliation body. 12.3 ADR Institutions The Commercial Arbitration Court is Hungary’s permanent arbitral institution, under the aegis of which commercial disputes are decided by arbitral tribunals under the new arbitration rules drafted in line with the new Arbitration Act, in effect as of 2018 and updated as of late 2022. There are also three designated permanent insti- tutions for sports, agricultural and food-related, and concession disputes. The Commercial Arbitration Court actively pro- motes ADR in Hungary. In addition to arbitration, the Commercial Arbitration Court also provides mediation services in accordance with its insti- tutional mediation rules. 13. Arbitration 13.1 Laws Regarding the Conduct of Arbitration Model Law-Based Lex Arbitri in the Hungarian Arbitration Act The Hungarian lex arbitri is included in the Hun- garian Arbitration Act. The current Act is appli- cable to arbitrations that commenced on or after 1 January 2018. Hungary is a Model Law juris- diction. The concept behind – and the majority of the provisions in – the Act follow the UNCI- TRAL Model Law, with some national peculiari- ties. Within domestic awards, no differentiation is made between awards made in Hungary in purely domestic matters and international arbi- trations.
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