Civil Litigation
In many cases, a dispute can be resolved amicably through negotiation and agreement. But what happens if the other party refuses to cooperate, or if you suffer a serious legal violation that cannot be ignored? In such cases, civil litigation may be the appropriate course of action. Civil litigation is the formal resolution of legal disputes before a court.
The purpose of a civil lawsuit is for the court to decide a legal dispute between two or more parties. These disputes may involve financial claims, such as debts or damages, contractual disputes, real estate matters, inheritance issues, or even family law cases. A well-prepared lawsuit is not only a legal matter but also a strategic one, where the support of an experienced litigation lawyer can make a real difference.
Litigation under the New Code of Civil Procedure
The new Hungarian Code of Civil Procedure introduced a strict and highly structured system that requires exceptional precision, foresight, and strategic planning from the parties and their legal representatives. The procedure is strongly formalized. At a very early stage of the case, all facts and evidence must be presented in full, and any omission may result in serious legal consequences. This makes litigation more complex and riskier for those unfamiliar with the new rules. Our firm, however, specializes specifically in litigation under the new Code of Civil Procedure and handles complex, high-value cases on a daily basis within this framework.
Arbitration proceedings: fast, final, and fair decisions
Many commercial contracts contain arbitration clauses under which the parties agree to submit their disputes to arbitration instead of state courts. Arbitration awards are generally not subject to appeal, but they are directly enforceable, allowing disputes to be resolved quickly and conclusively. Arbitration proceedings are usually simpler and better tailored to business needs than court litigation under the Code of Civil Procedure. Typically, a three-member tribunal is appointed, where each party nominates one arbitrator, and the two arbitrators jointly select the presiding arbitrator. This structure strengthens trust and impartiality.
In disputes with a claim value exceeding approximately HUF 1 billion, arbitration usually does not involve significantly higher costs compared to state court proceedings. Our firm provides legal representation in arbitration proceedings in both Hungarian and English.
Initiating civil litigation
Civil litigation formally begins with the filing of a statement of claim. This document sets out what the claimant requests from the court and the legal and factual reasons for the claim. The statement of claim must comply with strict formal and substantive requirements. It must include the defendant’s details, a concise description of the case, the precise claim, and a list of supporting evidence.
If these requirements are not met, the court may reject the claim on formal grounds. For this reason, it is advisable to seek legal assistance even at the very first step. A well-drafted and legally sound statement of claim provides a significant advantage during the proceedings and demonstrates to the court from the outset that the case is being pursued seriously.
Civil litigation lawyer in Budapest: how we can assist you
Our Budapest-based law firm specializes, among other areas, in civil litigation. Our clients include private individuals, companies, and nonprofit organizations. What they have in common is that their legal disputes could no longer be resolved through negotiation.
As litigation lawyers, our goal is not unnecessary court action, but the effective protection of your rights, whether through court hearings, settlement negotiations, or alternative dispute resolution methods.
What we offer our clients
- Strategic advice: During the initial consultation, we assess the strengths and prospects of your case.
- Document preparation: We assist with drafting the statement of claim and all other submissions.
- Court representation: We represent you both in writing and orally before the court.
- Negotiation strategy: With our experience, we help achieve the best possible outcome, whether through settlement or judgment.
Our experience shows that clients value most having a reliable point of contact throughout the process and the confidence that their case is in good hands.
Costs of civil litigation: what to expect
Litigation costs may seem daunting, but they are generally foreseeable and manageable. The three main cost categories are:
1. Court fees
In civil cases, court fees may be fixed in certain matters, such as divorce, or based on the value of the claim in others, typically in monetary claims, with no statutory upper limit.
2. Legal fees
Legal fees are always subject to individual agreement. Transparency is a core principle for us, and we clearly explain expected costs during the first consultation.
3. Additional costs
Depending on the case, expert fees, translation costs, or expenses related to witness hearings may also arise.
It is important to note that if the court rules in your favor, the opposing party is generally ordered to reimburse your costs. A well-founded lawsuit may therefore also be financially worthwhile.
Can foreigners initiate civil proceedings in Hungary?
Yes, foreign individuals and companies may initiate civil litigation in Hungary, although specific rules may apply. Below is an overview of the key points.
1. Jurisdiction
The first question is whether Hungarian courts have jurisdiction. This depends on factors such as:
- where the disputed event occurred, for example the place of performance of a contract,
- the defendant’s registered seat or residence,
- whether the contract contains a jurisdiction or arbitration clause.
Within the European Union, jurisdiction is governed by the Brussels I Regulation (Regulation (EU) No 1215/2012). In cases involving non-EU countries, the Hungarian Act on Private International Law and relevant international treaties apply.
2. Mandatory Legal Representation
In certain types of proceedings, and generally where the claim value exceeds HUF 30 million, legal representation is mandatory. If a party is not a Hungarian citizen or not a legal entity registered in Hungary, appointing a lawyer is strongly recommended. This is particularly important if the foreign party is unfamiliar with Hungarian law and procedural rules.
Can foreigners initiate civil proceedings in Hungary?
3. Translation and interpretation
The language of court proceedings is Hungarian. This means:
- all submissions must be filed in Hungarian, and foreign-language documents must be submitted with certified translations,
- a professional interpreter may be required at hearings if a party does not speak Hungarian.
The costs of translation and interpretation are usually borne by the party requesting them.
4. Security for Litigation Costs
Under Hungarian law, a foreign claimant may be required by the court to provide security for the expected litigation costs, unless:
- there is an international treaty between Hungary and the claimant’s state excluding such security, for example between EU Member States, or
- the court considers it unjustified on equitable grounds.
5. Service of Documents
In cases involving foreign parties, service of documents often takes place through international legal assistance, which may prolong the duration of the proceedings.
1. When is it advisable to initiate civil litigation?
When the other party refuses to cooperate or commits a legal violation and no other means of resolution are available.
2. What is the purpose of civil litigation?
To obtain an official court decision in a legal dispute, such as a monetary claim or contractual issue.
3. How long does an average civil lawsuit last?
This depends on the case, but it may range from several months to several years.
4. Is a lawyer required for civil litigation?
While not always mandatory, it is strongly recommended due to the legal complexity of litigation.
5. Where should a civil lawsuit be filed?
Generally with the court having jurisdiction over the defendant’s place of residence or registered seat.
6. What happens if I lose the civil case?
The court will dismiss the claim, and you may be required to reimburse the opposing party’s costs.
7. Is it possible to reach a settlement during civil litigation?
Yes, even during hearings. In many cases, settlement saves both time and money.
8. What documents must be attached to a civil claim?
Contracts, correspondence, receipts, witness statements, and any other documents supporting your position.
9. What are the most common reasons for civil lawsuits?
Debt claims, damages, breach of contract, real estate disputes, inheritance conflicts, and family law matters.
10. What are the advantages of appointing a litigation lawyer?
It increases the chances of success and reduces stress throughout the proceedings.
Our experienced team is at your disposal