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In Hungary, as is the case in other EU countries, recent economic growth has been accompanied by a labour shortage. This is largely due to Hungarian workers emigrating to other EU countries in search of higher wages and better living standards. According to statistics, approximately 5% of the country's working-age population has emigrated to other EU countries in recent years.

The new Hungarian Code of Civil Procedure (the “Code”) came with a number of ambitious promises, many of which have already been addressed in CEE Legal Matters. However, a prominent promise, namely increasing the transparency and predictability of litigation, has not yet been discussed in these pages.

In early 2017 the Hungarian Parliament passed the Code of Administrative Litigation as a beginning of the reform of the central administration. As the final step, the Hungarian Parliament adopted a law on the Administrative Courts on 12 December 2018. The goal of the new legislation was to ’restore the prestige of the administrative courts’ which was abolished in 1949. Since then no separate administrative court system existed, it was integrated into the civil courts.

The amendments of the Act on the Transactions in Agricultural and Forestry Land (Land Act) entered into force on 11 January 2019. Based on the new rules, in the approval procedure of the sale and purchase agreement for agricultural lands, the regional entity of the Hungarian Chamber of Agriculture as local land committee will prepare an opinion whether the sale and purchase agreement is in compliance with the aspects included in the Land Act (e.g. transparency of the relationship of tenures, preventing speculative land acquisition). The amendment determines the conditions that shall be considered in the course of the assessment of the compliance with these aspects, such as the purchase price of the land, the lands already owned by the purchaser, or how the sale and purchase of the land serves the acquisition of ownership of young farmers or new agricultural producers.

The Hungarian Competition Authority (HCA) cleared the acquisition of sole control over Invitel Távközlési Zrt ("Invitel") by Digi Távközlési és Szolgáltató Kft ("DIGI") conditionally - with commitments - in May 2018. A few months later, it established that DIGI had intentionally misled HCA officials and therefore revoked the decision and imposed a fine on DIGI of HUF 90 million (approx. EUR 280,000). It then reopened the proceeding to assess the relevant markets affected by the misleading information. Revoking a merger clearance decision is not without precedent in the HCA's recent practice, as the HCA has invoked three clearance decisions in the last two years. What is new, however, is that the HCA granted a derogation from the suspension clause to prevent negative market consequences from interfering with the already closed transaction. The HCA also resorted to a dawn raid during the original proceeding, which is a new instrument in merger control cases.

Noerr has advised K&H Bank on the financing of the Wing Groups’ acquisition of the "Siemens Offices" real estate complex in Budapest from Siemens. CMS advised Siemens on the acquisition itself, while DLA Piper reportedly advised Wing.

On September 11, 2018, CEE Legal Matters reported that Akos Eros, the Managing Partner of Squire Patton Boggs in Hungary, had taken a team from that international firm to join Wolf Theiss, led in Budapest by his old friend Zoltan Faludi. The reunion of these two actual comrades-in-arms is a source of real excitement at Wolf Theiss Hungary, which is embracing the changing legal market of the moment with confidence and style.

On 20 November 2018, the European Parliament’s Committee on Employment and Social Affairs (“EMPL”) adopted modernised rules for coordinating social security systems. The EMPL focused on facilitating labour mobility while safeguarding the workers’ social security rights in cross-border situations, by determining under which Member State’ s system a person is insured. The purpose of the new rules is to make it easier for EU citizens to work in another EU Member State and to have a fair access to social security benefits.

Taylor Wessing Budapest, working with lawyers from America's Nixon Peabody law firm, has helped persuade the United States Supreme Court to uphold a lower court's ruling that US courts lack jurisdiction over the Hungarian State in a lawsuit involving the attempted restitution of artworks that once belonged to the Herzog Collection. The Court published its decision on January 7, 2019.

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Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

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The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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