The Hungarian Parliament adopted Act XLIX of 2025 on the amendment of certain acts relating to the judiciary (“Amendment“), which, among other things, creates the possibility of expediting civil proceedings and imposes sanctions on courts for exceeding deadlines. The amendment also provides for the possibility of following the proceedings online in the future. In this article, we summarize certain provisions of the Amendment relating to Act CXXX of 2016 on civil procedure (“Pp.“).
The new litigation model, the rules for simplified civil lawsuit, new forms of decisions containing abbreviated reasoning, and the applicability of legal consequences due to prolonged proceedings will enter into force on August 19, 2025. From January 1, 2026, it will also be possible to participate online in court hearings.
Simplified civil lawsuit
The Amendment introduces simplified civil lawsuits as a new type of lawsuit, which can only be used in civil litigation arising from contractual relationships. The parties may stipulate in their written contract that any disputes shall be settled through simplified civil lawsuit, however, such a stipulation is excluded in disputes concerning personal status, labour law, and consumer rights.
Legal representation is mandatory in simplified civil lawsuits. The expeditiousness and efficiency of the procedure is ensured by its written nature and by the fact that the plaintiff must prepare the procedure in its entirety. The latter requirement means that the plaintiff initiating the lawsuit must attach all documentary evidence and expert opinions to the statement of claim, and no change of actions is permitted.
In simplified civil lawsuit, there is no separate case initiation or hearing as to merits stage; the proceedings are conducted exclusively with regard to the claim concerned by the action.
The courts shall act without delay and shall take their measures within a maximum of 8 days. The deadline to submit the defence statement is 15 days, which shall not be extended at any circumstances.
Furthermore, after the counterclaim has been filed, the court shall – within a short period of time – call upon the parties to state whether they wish to proceed according to the general rules or whether they intend to reach an agreement. If the parties jointly declare that they wish to conduct the proceedings in accordance with the general rules, the court shall schedule a case initiation hearing and then must continue the proceeding in accordance with the general rules. In case the parties submit their settlement agreement to the court, the court shall approve it by its order, if the conditions for approval are fulfilled.
If the parties concerned do not request to conduct the proceeding in accordance with the general rules and do not reach an agreement, the court shall deliver its judgment within 30 days of the date on which on which the parties were called upon.
There are also short deadlines for legal remedies: the parties will have 8 days to submit an appeal, which may only be based on a substantial violation of the rules of the first instance proceedings or the incorrect application of the law on which the decision was based. Appeals against orders shall be decided by the court of second instance within 15 days and appeals against judgments within 30 days.
The Amendment introduces a reduced fee for this type of lawsuit, as the amount of the fee payable is 70% of the fee for proceedings conducted under the general rules.
Judgments with automatic abbreviated reasoning
In order to further reduce the administrative burden on courts and increase the time available for substantive work, the Amendment restructures the existing rules on abbreviated reasoning in the Pp. As a result, the parties will no longer be able to request a shortened reasoning of the judgment.
At the same time, the Amendment introduces two new cases in which a judgment may automatically contain abbreviated reasoning. The court that issued the judgment subject to appeal is only required to provide detailed reasoning for its judgment if the parties expressly request this. Therefore, if neither party appears at the pronouncement of the judgment, or if, despite the court’s request, none of the parties present requests a detailed statement of reasons, the court will automatically deliver a judgment containing a abbreviated reasoning.
Legal consequences of protracted hearings
If they fail to meet the statutory deadline for taking action, the courts shall, ex officio, grant the parties financial compensation equal to 1.5% of the minimum wage per day from the day following the deadline. With this step, the legislator’s declared aim is to persuade the courts to comply strictly with the time limits laid down in the Pp. in all cases. The Amendment also provides for legal remedies for the parties in the event that the defaulting court fails to order payment of compensation. In such cases, the party concerned may raise an objection.
Live-streamed hearings
The Amendment makes it possible for the audience to participate in civil proceedings via an online platform. However, this also requires that the necessary technological conditions be in place in the courts. According to the reasoning of the Amendment, this will allow for even broader social control over the courts. On the other hand, it also ensures that students studying law or state administration, as well as teachers and researchers, can directly participate in the hearings.
A maximum of the first 100 adult natural persons who successfully register may participate in the hearing as an online audience. Registration will be possible on a newly created interface, provided that the person wishing to register identifies themselves using the eAzonosítás service of the DÁP application.
Summary
With this Amendment, the legislator is attempting to ease the burden on the courts by making abbreviated reasoning the default option, a goal that is also served by the simplified civil lawsuit. In view of the introduction of simplified civil lawsuit, it is advisable to review existing and future contracts, as the provisions governing simplified proceedings allow for relatively rapid enforcement of claims.
The prompt handling of proceedings is to be facilitated by the introduction of a system of “penalty payments” for courts. Of course, the question arises as to whether the administration of financial compensation payments will require additional capacity from the courts.
As a result of the digital revolution of recent years, there has been an increased demand for court proceedings to be followed online using telecommunications tools. However, in practice, prior verification of persons registering as online spectators will place an additional burden on the courts and also increase the risk of misuse.
In connection with the Amendment, it is worth mentioning that on June 26, 2025, the National Judicial Council (“OBT“) filed a constitutional complaint (“Complaint“) to the Constitutional Court (“AB“). In its Complaint, the OBT requested, among other things, that the provision of the Amendment relating to financial compensation and simplified civil lawsuit be declared unconstitutional and be annulled with retroactive effect. The AB must decide on the complaint by September at the latest. If the AB annuls the provisions in question, we will provide information about the decision in a separate article.
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