Bill on the new Hungarian arbitration act

A bill on the new Hungarian arbitration act was presented to the Parliament in April. The new act will provide a more detailed regulation taking into account the UNCITRAL Model Law.  However, the most fundamental change to be introduced by the new act is a structural one. Currently there are several permanent courts of arbitration. The most important are the Court of Arbitration attached to the Hungarian Chamber of Commerce and Industry, the Energy Arbitration Court and the Money and Capital Market Permanent Court of Arbitration.

The new act will provide (with certain minor exceptions) that there will be only one permanent court of arbitration, namely the Court of Arbitration attached to the Hungarian Chamber of Commerce and Industry. All other courts of arbitration will cease to exists on 1 January 2018. The bill provides that if there are ongoing procedures on this date, they will continue at the Court of Arbitration attached to the Hungarian Chamber of Commerce and Industry. The bill further provides that clauses referring a dispute to a court of arbitration, which no longer exists, shall be interpreted as if it referred to the Court of Arbitration attached to the Hungarian Chamber of Commerce and Industry.

The bill is expected to be passed by the Parliament at the end of May. The new law will be applicable to procedures initiated after 1 January 2018.

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