RECOGNITION AND ENFORCEMENT OF A THIRD COUNTRY JUDGMENT IN HUNGARY

07 September 2023

If the EU Brussels Ia Regulation or a specific international treaty does not apply to the recognition and enforcement of a foreign judgment in Hungary, the provisions of the Hungarian Act XXVIII of 2017 on private international law („PIL Act”) shall be applied to third country judgment. In the following, we describe the procedural rules applicable to the recognition of third country judgments and its relation to enforcement.

1. The PIL Act’s general rule regarding recognition of a foreign judgment

The PIL Act set out that no separate procedure shall be required for the recognition of a foreign decision. Unless otherwise provided by law, the matter of recognisability shall be assessed by the court in the procedure of which it arose.

2. Separate procedure for the recognition of a foreign judgment

However, the party concerned may also request in a separate procedure the recognition of a foreign judgment in Hungary. The court shall decide on such a request in a non-contentious procedure.

The procedure shall be under the material jurisdiction and exclusive territorial jurisdiction of

1. the district court attached to the regional court, in the territory of which the domicile (seat) or, in the absence of such, the habitual residence of the opposing party is located (in Budapest the Central District Court of Buda) or, with respect to foreign arbitral awards, the regional court (in Budapest the Budapest-Capital Regional Court), or, failing that,
2. b) the district court attached to the regional court, in the territory of which the domicile (seat) or, in the absence of such, the habitual residence of the requesting party is located (in Budapest the Central District Court of Buda) or, with respect to foreign arbitral awards, the regional court (in Budapest the Budapest-Capital Regional Court), or
3. the Central District Court of Buda or, with respect to foreign arbitral awards the Budapest-Capital Regional Court, if the requesting party has no domicile (seat) or habitual residence in Hungary either.

The procedures, including the available legal remedies, shall be governed by the provisions of the act on judicial enforcement on the issue of the certificate of enforcement.

Consequently, the application must be accompanied by the decision sought to be recognised and, if necessary, a translation of the decision in Hungarian, if the court requests it. Other documents proving that the conditions for recognition under the PIL Act are met must be also attached, such as the instrument attesting the finality of the decision.

3. Procedure of the courts in case of a separate procedure for the recognition

Under the PIL Act, only the following are examined ex officio by the courts:

1. the validity of the foreign court's jurisdiction,
2. the legal force of the foreign judgment,
3. the existence of reciprocity,
4. approval of a foreign adoption by a Hungarian guardianship authority,
5. infringement of Hungarian public policy.

The court shall issue an order stating whether the decision may be recognised domestically; an appeal may be lodged against this decision and against the order rejecting the application or dismissing the application.

In all other cases, the party concerned must expressly declare its intention to invoke the ground for refusal.

Moreover, the PIL Act, as a general principle, lays down that the foreign decisions shall not be the subject of review as to their substance.

4. Enforcement of a third country judgment

It is noted that in addition to the conditions for recognition, a decision must also meet other conditions before it can be enforced. To enforce a foreign judgment, the exequatur procedure must be carried out in accordance Hungarian Enforcement Procedure Act.