International Commercial Arbitration at Hungary
Here’s a detailed overview of International Commercial Arbitration in Hungary:
International Commercial Arbitration in Hungary
1. Legal Framework
Hungary’s arbitration law is primarily governed by Act No. LV of 2017 on Arbitration (the “Hungarian Arbitration Act”), which closely follows the UNCITRAL Model Law on International Commercial Arbitration.
Hungary is a party to the 1958 New York Convention, ensuring recognition and enforcement of foreign arbitral awards.
The Hungarian Arbitration Act applies to both domestic and international commercial arbitration.
2. Key Features of Hungarian Arbitration Law
Arbitration agreements are enforceable and courts generally support arbitration.
Parties have autonomy to select:
The seat of arbitration,
The number and qualifications of arbitrators,
The rules and procedures of arbitration.
Courts have a limited role and only intervene in specific cases such as:
Appointment or removal of arbitrators (if parties cannot agree),
Setting aside of arbitral awards on limited grounds.
Arbitration awards are final and binding.
3. Arbitration Institutions
Hungary has reputable arbitration institutions, including:
Budapest Chamber of Commerce and Industry Arbitration Court (BCCI Arbitration Court) — the main national arbitration institution.
International arbitration institutions (ICC, LCIA, etc.) are also commonly used in cases involving Hungarian parties.
4. Enforcement of Arbitral Awards
Hungary enforces both domestic and foreign arbitral awards under the New York Convention.
The grounds for refusal of enforcement are narrowly construed, consistent with international standards.
5. Advantages of Arbitration in Hungary
Arbitration is recognized as an efficient, flexible, and neutral dispute resolution mechanism.
Hungarian law and courts support party autonomy and international standards.
Availability of experienced arbitrators and established institutional support.
Confidentiality of proceedings.
Finality and ease of enforcement of awards.
6. Context and Use
Hungary, as an EU member state and a gateway between Western and Eastern Europe, is an important jurisdiction for international commerce.
Arbitration is widely used in commercial contracts, construction, investments, and cross-border trade involving Hungarian companies.
RELATED Blog
0 comments