ENFORCING HUNGARIAN JUDGMENTS IN EUROPE AND BEYOND

21 July 2023

A potential plaintiff, who intends to initiate a civil law litigation against his debtor in Hungary, often aims to enforce the Hungarian judgment only in Hungary. However, a Hungarian judgment may be enforced also in other EU or EEA Member States without any intermediary procedure ('exequatur'). Moreover, a Hungarian Judgment may be also enforced in a third country which recognises the Hungarian Judgment.

Enforcing a Hungarian judgment in other EU/EEA Member States

The recognition and enforcement of judgments in civil and commercial matters within the EU are regulated by the 1215/2012 EU Regulation (“Brussels Ia Regulation” or “Regulation”), and the so-called Lugano Convention shall be applied to judgments in EEA.

Based on the Brussels Ia Regulation and the Lugano Convention, to enforce a judgment in another EU/EEA country, the creditor can go directly to the enforcement authorities in another EU/EEA country.

Regarding the procedure, the creditor has to provide the other states’ enforcement authority with

1. a copy of the Hungarian judgment; and
2. the certificate issued by the Hungarian court confirming the enforceability and giving details of the judgment, e.g.: relevant information on the recoverable costs of the proceedings and the calculation of interest.

Furthermore, we note that with a Hungarian enforceable judgment, creditor can also apply for any protective measures which exist under the law of the EE /EEA Member State addressed.

The enforcement authority of the other EU Member shall be refused the recognition of the Hungarian judgment only based on the causes stipulated in the Regulation, namely

1. recognition is manifestly contrary to public policy (ordre public) in the Member State addressed;
2. where the judgment was given in default of appearance, if the defendant was not served with the document which instituted the proceedings or with an equivalent document in sufficient time and in such a way as to enable him to arrange for his defence, unless the defendant failed to commence proceedings to challenge the judgment when it was possible for him to do so;
3. if the judgment is irreconcilable with a judgment given between the same parties in the Member State addressed;
4. if the judgment is irreconcilable with an earlier judgment given in another Member State or in a third State involving the same cause of action and between the same parties;
5. if the judgment conflicts with certain provisions of the Regulation if the policyholder, the insured, a beneficiary of the insurance contract, the injured party, the consumer or the employee was the defendant; or the judgment conflicts with the exclusive jurisdiction clause of the Regulation.

We note that the Lugano Convention lays down almost the same grounds for the refusal of the recognition.

Enforcing a Hungarian judgment in a third-country

Hungary has concluded several international treaties with other states which enables, under the conditions laid down in the treaty in question, the enforcement of the Hungarian civil law judgments in third countries.

These countries are the followings: Albania, Algeria, Belarus, Bosnia and Herzegovina, China, Cuba, Egypt, Iraq, Kosovo, Moldova, North Korea, North Macedonia, Mongolia, Montenegro, Russia, Serbia, Syria, Tunisia, Ukraine, Vietnam.