The conception of a new act on private international law had been submitted to the Hungarian Ministry of Justice for an opinion, and now is in the process of approval by the Hungarian Government.
Currently, Law-decree no. 13 of 1979 on Private International Law determines which country’s law is applicable if a foreign person, object of property or right (foreign component) is involved in a civil law, family or labour law relationship, where the laws of several countries would be applicable, it regulates furthermore the jurisdiction and procedural rules to be followed in a legal dispute containing a foreign component.
Adopting a new act seems to be rational for several reasons: first of all, since the date of the codification of the currently applicable rules (i.e. 1979), the number of legal relationships having private international element has been increased significantly. In addition, the system of external economic relations of Hungary has changed with special regard to Hungary’s of European Union membership for more than 10 years. Furthermore, Hungary is a party to many multilateral conventions containing more modern regulations, which are, however, different from the rules of Hungary’s national law. The purpose of the new act is also to incorporate the improving judicial practice, which then could be an integral part of the renewing Hungarian private law system.
By Levente Csengery, Partner, KCG Partners Law Firm