Litigation 2025

HUNGARY Trends and Developments Contributed by: István Varga and Viktor Előd Cserép, PROVARIS Varga & Partners

it is sufficient if the participant can use a device at their disposal. Direct presence is secured by the device transmitting the audiovisual content (eg, a laptop or mobile phone). Such “digital” presence is subject to the consent of the par- ticipant who is to be heard virtually. It should be noted that this does not mean virtual hear - ings, but merely the virtual presence of certain persons at the hearing that is held in court – ie, physically. This simplified way of hearing partici- pants to the proceedings has already been pro- vided for in criminal proceedings. With effect as of July 2024, this possibility has been extended A new ground for the termination of the man- date of court-appointed experts has also been introduced, also from July 2024. Accordingly, the mandate of an expert may be terminated if they do not submit their expert opinion within the specified (or extended) time limit and they can- not be expected to do so in view of the circum- stances. Such a termination of mandate shall be accompanied by a monetary fine pursuant to the new provision. The new provision is intended to prevent delays and has been put in place in response to the experience of such delays. Composition of adjudicating senates of the Kúria to civil proceedings as well. Court-appointed experts As of July 2024, the adjudicating senates of the Kúria shall proceed in five-member senates. So far, the default rule has provided for three-mem- ber senates, with the possibility of having five judges subject to the circumstances of the case. Since this has become standard practice, the statutory rules have been adjusted accordingly. Re-regulation of recoverable attorneys’ fees One of the most recent developments, as of 30 August 2024, is the publication of a new Draft

Decree by the Ministry of Justice on the fees of attorneys and legal advisors in court and admin- istrative proceedings. The legal provisions cur- rently in force are to be found in Decree 32/2003. (VIII. 22.) IM of the Minister of Justice on attor- neys’ fees recoverable in court proceedings. It concerns only those attorneys’ fees in court proceedings that can be established either in accordance with the retainer agreement of the respective attorney or law firm, or pursuant to the schedule provided for in the Decree: • 5% of the value of the dispute up to approxi- mately EUR25,000; • 3% of the value above approximately EUR25,000 and up to approximately EUR250,000; and • 1% of the value exceeding approximately EUR250,000. While nominally keeping the aforementioned default schedule, the Draft Decree clarifies the criteria for the reduction of attorneys’ fees, the considerations for which need to be clearly reflected in the decision. The Decree also intro- duces safeguards limiting the possibility to reduce attorneys’ fees. These ensure the parties’ rights to the full recovery of procedural costs and at the same time reasonably prevents the award of excessive attorneys’ fees. The reasons for the decision on attorneys’ fees must be detailed, supported by an analysis of the content of the case, the costs included in the fees, as well as the scope and the specificity of the work car- ried out. The new regulation reflects the develop- ments in neighbouring countries as well as the practice of the Kúria – ie, the Supreme Court of Hungary (notably decision Pfv.II.20.887/2023/6.).

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