New Tort Rules in Hungary

(This following post is provided by Szabolcs Dispiter and Péter Mitták in the Budapest office of CMS Cameron McKenna LLP. I appreciate their contribution and keeping us aware of these issues.)

Liability for civil wrongs (torts) is to be governed by new rules in the new Hungarian Civil Code.

There will no longer be the same degree of similarity between liability for tort and for breach of contract as there is in the current Code.

The new rules will clarify current provisions as well as adding new ones. The general position will be that individuals are liable for damage caused to others:

• unless they can show that their actions were to be expected in the circumstances
  
• but only for damage that could be foreseen at the time it was caused or was caused intentionally or by gross negligence
  
• a 'prejudice fee' will be payable (instead of damages on the normal basis) to compensate for any damage that does not have a monetary value, such as the loss of an arm or the violation of a personal right
  
• there will be special rules for torts such as product liability and liability for environmental damage which are currently regulated in separate legislation
  

The new Hungarian Civil Code is now in its final phase of development since work began over 10 years ago. The text is likely to be finalised early next year by the Hungarian Parliament, although a number of details have yet to be decided.