The Hungarian parliament repealed the controversial restriction on arbitration relating to so-called national assets. Two and a half years after the introduction of the restriction, and one and a half years after its much debated approval by the Hungarian Constitutional Court, Hungarian law will again permit arbitration in relation to contracts that relate to national assets.
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…)
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.