According to both the new Civil Code and the old Act on Business Associations, arbitration clauses can be stipulated for corporate law disputes both in corporate statutes and in agreements of the parties involved in a dispute. It is worth examining whether these two different types of arbitration clauses are treated differently in the Hungarian and international court practice or not. (more…)
Month: February 2015
A company under liquidation cannot initiate arbitration proceedings
In one of its recent decisions, the Court of Appeal of Szeged ruled that a company under liquidation cannot initiate arbitration proceedings because this would be contrary to the purpose of the liquidation and the creditors’ interest. The Hungarian Supreme Court published this decision as guidance for other Hungarian courts. (Case no. EBH 2014.G.4., Szegedi Ítélőtábla Gf.I.30.014/2012.) (more…)
Investment Arbitration and the EU-USA Free Trade Agreement
The adoption of the Transatlantic Trade and Investment Partnership (TTIP) treaty by the EU and the US, including its Investor to State Dispute Settlement (ISDS) mechanism, should be a significant development in investment arbitration. Since the issue of “secret courts” is one of the focal points of protests against the TTIP, to form an informed opinion it is worth taking a look at the ISDS rules of the EU- Canada Comprehensive Economic and Trade Agreement (CETA), which is likely to serve as a regulatory model of the TTIP ISDS rules.
Hungarian Supreme Court confirms Res Iudicata effect of Arbitration Awards and the public policy nature of Res Iudicata effect
In a recent decision published under BH 2015.14, the Hungarian Supreme Court confirmed that arbitral awards have a res iudicata effect and that an arbitral award disrespecting the finality of an earlier award can be annulled on the basis of the public policy clause of the Hungarian Arbitration Law. The Supreme Court also clarified the scope of such effect, and its interpretation has important implication for litigants faced with incomplete arbitral awards.