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In July 2023 the European Court of Justice (ECJ) gave its judgment in case no. C-106-22 (Xella Judgment). The case was referred by the Fővárosi Törvényszék (Budapest High Court, Hungary) for preliminary ruling on the interpretation of Article 65(1)(b) TFEU in conjunction with recitals 4 and 6 of Regulation (EU) 2019/452 (EU FDI Regulation) and Article 4(2) TEU.

The company name is an important asset of the company and also helps the customers when choosing between products or services. Therefore, a new company can only be founded with a name that is sufficiently different from existing companies. What are the legal options for a company if, despite the above, a new company with a very similar name has been registered?

On 5 October 2023, the Government adopted a new decision according to which it will review the current regulation on the entry, residence and employment of third-country nationals in Hungary with the aim of tightening the statutory provisions in this respect.

The Hungarian Labour Code specifies that the dismissal by the employer may be in relation to the behaviour of the employee, but it does not specify exactly what kind of behaviours can be considered. The question arises as to whether the employer can define the possible reasons for termination in its own regulations, if so, can the termination be based solely on the violation of the internal regulations? In our article, we analyse this question based on the recent decision of the Supreme Court.

CMS has advised the Hungarian branch of Panattoni on a dual built-to-suit contract to develop two manufacturing facilities in Debrecen and Kecskemet, covering 30,000 square meters, for a German automotive supplier. Noerr reportedly advised the counterparty.

There is no doubt that the coronavirus pandemic was a fundamental shock to the Hungarian economy. Many business operators have tried to reduce their losses by terminating contracts, referring to the coronavirus as force majeure cause and there have now been more court decisions in such cases. A recent one deals with the question whether a long-term framework contract may be terminated because of the impossibility of the performance, invoking the coronavirus as a force majeure.

Szabo Kelemen & Partners Andersen Attorneys Managing Partner Tamas Szabo has stepped down from his Managing Partner position after almost 30 years. Taking Szabo’s place in the firm’s four-person leadership team is Partner Balazs Dominek, who became a Managing Partner at Andersen Legal earlier this year.

Anyone who has seen venture capital investments has probably encountered the expressions “vesting” or “reverse vesting”.

In June 2023 Hungary introduced a new ground for annulling construction arbitration awards, which applies where arbitrators fail to deliberate the opinion of the Performance Certification Expert Body. Will this amendment affect so negatively Hungarian construction arbitrations as believed by many commentators? This article argues that paradoxically, the new law can even strengthen the position of arbitration as alternative dispute resolution method in construction matters.

Lakatos Koves & Partners, working with Clifford Chance’s London office, has advised John Swire & Sons Ltd. on the acquisition of the Swire Coca-Cola USA unit of Hong Kong-based conglomerate Swire Pacific Ltd. for USD 3.9 billion. Slaughter and May advised the sellers.

In the past, banks have predominantly relied on financial metrics to guide their funding strategies. However, with the prominence and importance of ESG (Environmental, Social and Governance) principles, a paradigm shift is underway. Sustainability metrics are gaining prominence in the decision-making process for financing companies or projects.

At the end of September, the long-awaited Regulation (EU) 2023/1804) on the deployment of alternative fuel infrastructure, and repealing Directive 2014/94/EU (“AFIR”) was published in the Official Journal of the European Union. Though the entry into force of AFIR is 13 April 2024, it is worth reviewing the key takeaways that the AFIR introduces as part of the EU’s Fit for 55 package.

ESG legislation changes in Hungary are reshaping corporate practices and legal counsel roles, according to Taylor Wessing Partner Zoltan Novak. "Green claims" and expanded reporting obligations, even beyond finance, demand precise compliance, and lawyers in Hungary now play a pivotal role in navigating this evolving ESG landscape, ushering in a new era of corporate responsibility.

Under Hungarian law the judge can reduce the amount of the contractual penalty if it is excessive. The penalty reduction shall be expressly requested by the defendant during the litigation. Can the defendant submit such request at any time during the litigation, or is there any deadline for that? In a recent decision, the Hungarian Supreme Court addressed this issue.

Hungary Knowledge Partner

DLA Piper is a global law firm with lawyers located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa, and Asia Pacific. This positions us to help clients with their legal needs around the world.

With more than 60 lawyers, including 14 partners, and a staff of over 140, DLA Piper Hungary is one of the largest international law firms operating in Hungary. What makes us stand out is that we offer not only legal services but also tax and business advisory support in a fully integrated manner. We maximize synergies between legal, tax, and business advisory services to offer a unique service for our clients, particularly in regulated industries such as energy, infrastructure, life sciences, banking, and telecommunications.

We are a true full-service firm, providing our private and public sector clients with advice on all aspects of their business. This includes transaction-related advice, people and employment, commercial dealings, litigation, information technology, media and communications, intellectual property, insurance, tax, real estate, and restructuring plans.

DLA Piper Hungary has received numerous professional awards and is consistently ranked among the top law firms in Hungary by international rankings. We are ranked #1 by Mergermarket among the law firms active in Hungary based on the volume of M&A deals handled between 2005 and 2024.

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