CODE OF CIVIL PROCEDURE IN HUNGARY
This article will provide guidance on the Code of Civil Procedure in Hungary. The previous Code of Civil Procedure in Hungary from 1952 was replaced by the new one in 2016. It was updated because it had become outdated and no longer reflected the modern, less-is-more approach to civil litigation that its proponents had advocated since the early 2000s. Click Here for information on the Code of Civil Procedure in Hungary.
It is preferable to engage the services of a private process server like Undisputed Legal since international process service is often complicated and much more taxing than service across domestic boundaries. It is necessary to ensure that the letter of request complies with the requirements of the originating and accepting court before going to the Central Authority. A private process service agency like Undisputed Legal can prevent errors from delaying or even voiding the service of documents. Click here for How the Hague Convention Simplifies International Process Service.
BACKGROUND
There are lower courts, higher courts, a curia, and higher courts of appeal in the Hungarian judicial system, just as in any other country. Work is divided among courts having concurrent jurisdiction depending on geographic proximity. There are five Hungarian courts of appeal: [A.] the Court of Appeal in Debrecen, [B.] the Court of Appeal in Budapest, [C.] the Court of Appeal in Gyr, [D.] the Court of Appeal in Pécs, and [E.] the Court of Appeal in Szeged. They hear and rule on appeals from lower regional courts' rulings in this capacity. Click Here for Frequently Asked Questions About Process Servers!
The Curia (the old Supreme Court) created uniform jurisdiction. As such, the Curia issues rulings on specialized courts and conducts investigations into standard law procedures. The Curia also serves as the third instance court in criminal matters that have been decided by the law and hears motions for resumption and appeals against final verdicts. Click here for information on How Process Servers Protect Your Rights: Myths Debunked.
Final judgments in the Hungarian civil process may be appealed under extremely restricted circumstances. A petition for a rehearing of a final decision must, among other things, allege that a statutory provision relevant to the case was violated or that the judge's ruling on the legal issue differed from Curia's published decision. The deadline is 45 days after the final order has been published. Click here for information on How To Identify A Good Process Service Agency.
INITIATING A CIVIL SUIT IN HUNGARY
There are two tiers in a civil suit. Regional courts or, under certain circumstances set down by law, district courts first hear civil proceedings. Courts of first instance, or regional courts of appeal, also entertain requests for redress. The court of appeals judgment, if any, is binding and final on all parties involved. If a party disagrees with a binding decision based on an infringement, they may seek judicial review of the ruling before the Curia (the top court). Click here for information on How Rush Process Service Can Expedite Your Case.
To qualify as a ‘statement of claim’ under the 2016 Code, the petition for relief had to specify what kind of ‘judgment order’ was being sought. Simply put, the petition needed to be worded to allow the court to include the requested wholesale in its eventual ruling. For instance, a claimant may be immediately denied if all they asked for in their petition was for the court to compel the defendant to stop interfering with the owner's quiet enjoyment of an apartment as specified in the statement of claim. It is necessary to involve a private process service agency like Undisputed Legal since legal documents must comply with the dynamic changes in the statutory requirements to be considered valid in Hungary. For example, even when making a seemingly insignificant procedural declaration, the initial requirements of the 2016 Code mandated that the claimant identify the specific legal principles upon which it relied. In the absence of any contrary evidence, the court is authorized (and indeed required) to rely on the contents of the public registries, a power of attorney attached to the claim, and the statement of the claim itself. Click here for information on How Service of Process Ensures A Solid Foundation.
JURISDICTION IN HUNGARY
The international jurisdiction statutes must be reviewed when determining whether a state's courts have jurisdiction over a legal dispute involving a foreign party. A natural person may, in principle, be sued in the court of the Member State where their residence is located by EU-Regulation No. 1215/2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters. Click here for information on How To Overcome Language Barriers in Process Service.
However, the Parties may agree that any pending or future legal disputes resulting from a particular legal relationship should be decided by a court or courts of the member states of the EU, regardless of the location of any of the Parties. According to the applicable legal conditions, a foreign order may be executed in Hungary based on legislation, an international agreement, or reciprocity. If an order is enforced anywhere inside the EU, several EU regulations must be followed. EU regulations govern acceptance and enforcement. The mechanism for enforcement, however, is not laid forth in these rules; rather, it is governed by the legislation of the state that is carrying it out. The Hungarian legal norm shall apply concerning the decree or international agreement referenced in the submitted text. Click here for information on How Timelines Are Important in Process Serving.
If the state executing the order recognizes the legitimacy of foreign orders, the orders may have the same effect as domestic orders under the applicable law. Because of the recognition, the order is legally binding in the same way as if it had come from a court in a member state. Suppose an EU legal standard requires acknowledgment and enforcement of the order without requiring a declaration of enforceability and without contesting the recognition. In that case, the court need not analyze the criteria for the acknowledgment. It is necessary to ensure that your documents follow the service requirements of the specific country. EU service specifications must also be fulfilled to ensure the service is valid. It is preferable to engage the services of an experienced private process server like Undisputed Legal to ensure that these papers comply with the rules of multiple jurisdictions.
PRE-ACTION PROCEDURE IN HUNGARY
In Hungary, the parties are not required to have made any pre-court attempts at alternative conflict resolution before filing a civil case. In weighing whether or not to go to court, parties often think about their odds of prevailing, the potential expense of litigation, and the financial stability of their opponent. Payment orders should initially enforce financial claims between the parties that do not exceed HUF 3 million. If the obligor contests the payment order, legal action may be taken. Any party without legal representation must use the court's specialized form to file their statement of claim. Attorneys and corporations must use court-approved electronic filing software to transmit paperwork to the court.
The parties must demonstrate their legitimacy in court by producing documents such as an extract from the relevant corporate registration. In most legal proceedings, each side is expected to be represented by an attorney. Legal requirements for what should be included in a statement of claim and what should be included as attachments are quite specific.
EVIDENCE IN HUNGARY
Evidence in civil proceedings in Hungary is evaluated on a ‘free evaluation’ basis, meaning that neither the kind nor the number of possible motions to submit evidence in suit nor the methods of evidence presentation are restricted. However, if the court lacks the competence to determine or evaluate a fact, an expert must be brought in upon motion.
Unlawful court filings might result in the offender's fine if the court rejects them. The court has the first opportunity to interrogate witnesses and experts, and it will rule on the parties' requests to present evidence. The court may close the courtroom to the general public for certain hearings. The lawsuit will finish when the court issues a ruling on the case's merits, although the court has the discretion to stay, postpone, or discontinue the action.
Since the parties have limited opportunity to add to or alter any of their early pleadings, they must include all claims, facts, and rights in the statement of claim and defense during the initial phase. Therefore, the concept of 'iura novit curia' does not entirely prevail since the parties must additionally declare the appropriate law. Both phases are handled orally after an initial written phase. The first phase of a lawsuit is when the parties submit the case's facts, the parties' legal arguments, the motion to introduce evidence, and the claim for action. When the facts are significant, they will be heard at an evidentiary hearing.
Bailiffs are tasked with enforcing legal documents such as judgments and notarized contracts. When the court's decision has become final and binding, the party seeking enforcement may ask the court of first instance to issue a writ of enforcement. The Brussels I and Brussels II Regulations provide the groundwork for recognizing and enforcing judicial judgments issued inside the European Union.
SPECIFICS OF SERVICE OF PROCESS IN HUNGARY
Legal papers must be sent to the recipient through a recognized postal service and in line with applicable laws concerning the delivery of legal documents. As a private process server, Undsputed Legal can assure speed and accountability to our clients since we have a global process service presence and are well-acquainted with the particulars of Hungarian jurisdiction.
After the recipient's identification has been confirmed, they may pick up any court papers sent to him at the court's administrative office. If service is given to someone other than the addressee entitled to receive the document and the receiver is a party with opposing interests or their agent in action, service is regarded as improperly done. Service of process upon a party other than a natural person must be made at the party's seat or, in the absence of a seat, upon the party's statutory representative. Service on a non-natural person's statutory representative must be tried if service at the non-natural person's domicile fails. Suppose the non-natural party is a corporation or other entity listed in a public register, and service at its registered office or on its statutory representative is unsuccessful. In that case, the court must inform the authority responsible for maintaining the register of the unsuccessful service and the reason for it.
The parties should be informed if a court document cannot be served on the addressee, other than in the cases of anticipated service of the document. If the recipient of judicial papers refuses to accept service on the day it is attempted, the documents will be considered served on the day of the attempted service. If service was tried via the mail and was unsuccessful because the recipient did not accept it or because it was returned to the court as ‘unclaimed,’ then the document must be declared served on the fifth business day after the second attempt to serve it.
Suppose the document to be served is a statement of claim or a judgment on the merits concluding the proceedings. In that case, the court should inform the addressee through regular mail of the start of the legal consequences of supposed service within eight working days. Suppose the document is a statement of claim. In that case, the notice must also tell the recipient when the action may be legally efficacious and the requirements for filing a complaint against the alleged delivery of papers.
Within fifteen days after learning [A.] that the legal effects of presumed service have arisen, if the document is deemed served based on presumed service, or [B.] of the service, if the document is deemed served for a reason other than presumed service, the addressee may file a complaint with the court whose proceedings involved the service of the document on the grounds specified.
No complaint may be brought more than three months from the day of service or the date the legal consequences of supposed service became effective. When this deadline is missed, no reason will be considered. Within fifteen days of the legal implications of the supposed service or of becoming aware of the service, a complaint may be made during the proceedings if it is related to the document that triggered the proceedings.
The complaint must include facts and circumstances that prove the irregular character of the service that support the basis raised by the addressee. Any complaints that are received after the deadline will be dismissed. In the event of a complaint, the court hearing the case in which the service was performed will make the final decision. Before deciding on the complaint, the court may interview the addressee and the parties. If feasible, the party filing the complaint should complete the action that is being treated as missing at the time the complaint is filed.
SERVICE BY A BAILIFF IN HUNGARY
During the proceedings in which an unsuccessful effort was made to serve a judicial document, the party seeking service by a bailiff must file a request with the court using the form prescribed by the legislation, setting down the precise procedural norms of service by bailiffs. The asking party should pay the bailiff's fee to the court in advance, and the court shall remit the amount to the Hungarian Chamber of Court Bailiffs, indicating the court in which the matter is pending and the case number. Once the court is made aware that the bailiff's fee has been pre-deposited, the court will immediately and without issuing a notice to correct shortcomings forward the request and the document to be served to the Hungarian Chamber of Court Bailiffs to take the appropriate action.
The deadline for responding to a court document begins ticking when the bailiff successfully serves the document, as required by law. It should be noted that the Hungarian international process service follows the requirements of the Hague Service Convention, which was enacted on November 15, 1965, in the Hague, Netherlands, by the member nations of the Hague Conference on Private International Law to regulate the service of process in civil and commercial disputes between states. We at Undisputed Legal are committed to ensuring that your papers comply with the essentials of Hungary's process service since the country has provided reservations to the Convention and requires an experienced process service agency to do so.
OUR PROCESS
Documents can be faxed at (800) 296-0115, emailed to ps@undisputedlegal.com, or uploaded to our website. We do require prepayment and accept all major credit and debit cards. Once payment is processed, your sales receipt is immediately emailed for your records.
Drop-offs must call and make an appointment first to be added to building security to permit access to our office. Documents for service must be in a sealed envelope with payment in the form of a money order or attorney check (WE DO NOT ACCEPT CASH) payable to UNDISPUTED LEGAL INC.; Our receptionist receives all documents.
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OFFICE LOCATIONS
New York: (212) 203-8001 – 590 Madison Avenue, 21st Floor, New York, New York 10022
Brooklyn: (347) 983-5436 – 300 Cadman Plaza West, 12th Floor, Brooklyn, New York 11201
Queens: (646) 357-3005 – 118-35 Queens Blvd, Suite 400, Forest Hills, New York 11375
Long Island: (516) 208-4577 – 626 RXR Plaza, 6th Floor, Uniondale, New York 11556
Westchester: (914) 414-0877 – 50 Main Street, 10th Floor, White Plains, New York 10606
Connecticut: (203) 489-2940 – 500 West Putnam Avenue, Suite 400, Greenwich, Connecticut 06830
New Jersey: (201) 630-0114 - 101 Hudson Street, 21 Floor, Jersey City, New Jersey 07302
Washington DC: (202) 655-4450 - 1101 Pennsylvania Avenue, Suite 300, Washington DC 20037
FOR ASSISTANCE SERVING LEGAL PAPERS IN HUNGARY
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Sources
1. Courts hear cases including
- District Courts
- Local Law Courts
Appeal Courts
2. To file for a resumption of proceedings, a party must show that the court should have ruled in their favor the first time but did not. He also needs to show that he had no control over the circumstances that prevented him from enforcing the facts, evidence, or orders he cited in his application for resumption of proceedings. The application date is not set in stone, but it must be no more than five years after the applicant is made aware of the final ruling (objective deadline).
3. The method of declaration of enforceability of a decision is prohibited, among other places, by EU-Decrees No. 44/2001 and No. 805/2004.
4. The court will uphold the complaint if the addressee is unable to accept the judicial document because a) it was served in violation of the laws pertaining to the service of official documents or the service was irregular for any other reason, or b) he was unable to accept the document for a reason not specified in point a) without fault on his part.
(5) A party or other interested person who is a natural person participating in the proceedings may make a complaint against the supposed service on the basis indicated.
5. Section 99 of the CCode of Civil Procedure in Hungary, Sections 27 to 32 of Government Decree no. 335/2012 (XII.4. ), and Sections 35 and 35/A of the Decree of the Minister of Justice no. 14/2002 include the provisions for serving official documents (VIII.1.).