A New Era in Civil Litigation – The Arrival of the Simplified Procedure!

A New Era in Civil Litigation – The Arrival of the Simplified Procedure!

From 19 August 2025, civil litigation in Hungary has entered a new phase: the provisions introducing the simplified civil procedure have entered into force. This new form of litigation is designed for cases where the parties, through a prior contractual clause, agree that speed, predictability, and enforceability are paramount.

What is the Simplified Procedure?

The simplified civil procedure is a contractually pre-agreed litigation form aimed at achieving a swift, written-based decision instead of lengthy trials.

Main characteristics:

  • Written procedure only – no hearings or oral arguments,
  • No amendments to claims, counterclaims, interventions, or set-offs,
  • Only documentary evidence and expert opinions may be used,
  • The court takes action within 8 days and delivers a judgment within 30 days.

The new Sections 591/A–H of the Code of Civil Procedure regulate the details, including the requirement of mandatory legal representation, attaching the simplified procedure clause to the claim, and the strictly limited evidentiary framework.

Why is the Simplified Procedure Beneficial?

This form of litigation is especially useful in business contracts, where the parties value predictable, quick, and effective enforcement.

Advantages include:

  • No procedural delays (e.g., by counterclaims or unfounded postponements),
  • Short, strict deadlines – compelling both the court and the parties to proceed in a disciplined manner,
  • Automatic monetary sanction protects the parties: if the court delays, a daily penalty equal to 1.5% of the minimum wage is payable,
  • Appeals are permitted only on limited grounds (serious procedural errors or misapplication of law) and must be filed within very short deadlines.

New Rules on Appeals

One of the most significant innovations is the tightened appeal system:

  • An appeal against a judgment is only permitted if a substantial procedural rule was violated or if the law was misapplied in the substantive decision.
  • The intention to appeal must be notified within 5 working days of receiving the judgment, accompanied by proof of payment of the appeal fee or an application for legal aid.
  • This deadline is strict; no extension or justification is allowed.
  • If the notice is valid, the court prepares a reasoned judgment, which may be appealed in full within 15 days.

This narrow gateway forces the parties into focused, efficient litigation.

Who Should Use It?

The simplified procedure cannot be applied in:

  • consumer contracts (e.g., private buyers, tenants),
  • cases concerning personal status or family law.

However, it is highly recommended in business and commercial contracts, where the parties anticipate that, in the event of a dispute, a fast, document-based procedure will be the most effective.

Our Recommendation

The new regulation enables parties to agree on the simplified procedure at the time of contract conclusion. In practice, this means that if a dispute arises, it can be resolved faster, more cost-effectively, and with less risk.

Our law firm offers:

  • review of existing contracts,
  • drafting of new contract templates,
  • insertion of simplified litigation clauses tailored to your needs.

If you wish to resolve your disputes faster, more efficiently, and with reduced risk, do not hesitate to contact us! The new simplified procedure finally provides a real legal tool for swift and secure enforcement of rights.