How Does a Lawsuit Work in Hungary?

In civil proceedings, the natural or legal person seeks to protect their rights called the plaintiff. The plaintiff files the lawsuit against the so-called defendant. In Hungary, civil proceedings have three major parts:

1. the first is a preliminary, or pre-action phase in which the plaintiff files his pleadings to the court.
2. the next stage is called the preparatory phase after the successful launch of the lawsuit. This stage is issued to finalize the legal and factual statements of the opposing parties and to present all pieces of evidence and motions.
3. The last phase is the actual trial stage which goes within the framework determined in the preparatory phase.

In the Hungarian civil proceedings, the plaintiff has the burden of proof which means that they must prove all the facts that substantiate their claim. During the trial phase, the judge or the panel of judges weigh the evidences and counter-evidences that are based on the statements and applications of the parties. The judge might ask the parties questions, also determine the matters to be evidenced, set the course of the lawsuit, and then take the actions necessary in the lawsuit. The judge might also appoint an expert, hear the witnesses, etc. Finally, after considering all the evidence, the judge delivers a judgment. This judgment must cover all pleadings, claims/counterclaims. The judgment must contain reasons for the decision, outlining the facts, shreds of evidence and the law applied to deliver the judgment. An appeal by any parties might be lodged against the judgment.

Claims for overdue payments may also be enforced by a so-called ‘order for payment’. Although, certain claims, specified by law, can be enforced by an ‘order for payment’ only. The ‘order for payment’ (in Hungarian: FMH) procedures are handled by civil law notaries.

Also, it is important to note that there is a time limit for bringing court action and the form of the time limit varies according to the case. It is therefore recommended to clarify the issue of time limits with an attorney-at-law. But not just this. It is also worth talking with an attorney about the issue of jurisdiction and competence of courts to determine which Hungarian court has competence in the given case. A good attorney is important not just for seeking legal advice but because representation by an attorney-at-law is mandatory under the Act CXXX of 2016 on the Code of Civil Procedure in court proceedings with only a very few exceptions: e.g. some district court cases at first instance and some labor court proceedings.

We underline that the language of court proceedings is Hungarian. Unless otherwise provided for by law, a legal act of the European Union, or an international convention, submissions addressed to the court must be filed in Hungarian, and submissions and decisions of the court are served in Hungarian. However, every person is entitled to use his or her mother tongue in court proceedings, as well as his or her regional or minority language, where this is provided for by international conventions. The court may assign an interpreter or translator if needed.

All in all, litigation in Hungary is not a short process, but the new Civil Procedure Code that entered into force in 2018 and the so-called divided litigation structure (as outlined above) helped a lot to shorten the duration of trials in our country. A properly prepared, thoroughly developed, well-argued plaintiff’s statement of claim or defendant’s counterclaim can in themselves be half a success in a legal proceeding since judges also value high-quality lawyer work and good legal ideas. We recommend that you contact our law firm in the event of litigation – either as a plaintiff or as a defendant – as we have nearly 15 years of experience in the legal representation of foreign citizens and companies.