Arbitration Proceeding in Hungary

In the business life debates are not exceptional. You make the right choice if you do not wish to commence judicial proceeding in all of your business debates as the delivery of the final judicial judgement can lasts for years and also the expenses incurred are very high. 

You can avoid the long-lasting and expensive regular judicial procedure and obtain the countervalue of your claim quick if you close the case in arbitrary way.

The court of arbitration is an independent court, which authorization derives from the agreement concluded by the business parties if the jurisdiction of the arbitration court for the cases of debates is stipulated in the agreement. The scope of the stipulation of the arbitration court is very wide, especially if the case has an international relation.

The agreement of the Parties regarding the stipulation of the arbitration court must be put down in writing. The arbitration clause is included either in the original contract or drafted in a separate agreement.

If the Parties have concluded the agreement regarding the stipulation of the arbitration court, they can not later change the scope of competence of the arbitration court to the scope of competence of the ordinary court. If they decide still so as described above, the ordinary court will dismiss the case.

The Arbitration Act describes three general conditions regarding the stipulation of the arbitration clause:

• firstly that one of the contracting parties must run an entertainment,
  
  
• secondly that the Parties must have disposal over the subject of the proceeding, and
  
  
• thirdly – as mentioned above - that the stipulation must put down in writing.

There are some sort of litigation where the stipulation of the arbitration court is invalid. This kind of lawsuits can be found first of all in the legal field of family law and administrative law.

The number of the judges must be odd. The Parties can choose together the judges, so they have the chance to choose those judges, which are expert regarding the subject of the case. It is a commonly used method that one-one Party choose one-one judge and the judges chosen by the Parties select the third judge. 

The arbitration court procedure is similar to the ordinary court procedure, as there is an action, a counter-action, hearing of the witnesses and experts etc.

The effect of the judgement of the arbitration court is also the same as the effect of the judgement of the ordinary court, as the Parties are bound by the provisions implied therein.

However it is not possible to appeal against the judgement, only the annulment of the judgement can initiate before the ordinary court in certain cases.

As the proceeding of the arbitration court is not public, the business relations and business interests of the Parties remain untouched by the public. 

DISCLAIMER:
The information contained in this article is provided for general information only. Considering the nature of online advising is inadequate for all-around complete advising Dr. Andras Toth-Kalaszi Law Firm is no responsible for the on-line advices, and it's not amenable to any action.

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