Hungarian Carriers Are Also Entitled to the Minimum Wage of the EU Member State of Posting During the Posting Period

At the beginning of July 2021, the Court of Justice of the European Union delivered its judgment in a case brought by Hungarian carriers concerning the fact that, despite earlier agreements, drivers received the Hungarian minimum wage during their period of posting. The Court held that an employee of a Hungarian-based employer may validly rely […]
Covid-19: Risk of Liability for Damage Contrary to Good Morals in the Case of Trade Credit

In the current crisis caused by the Covid-19 virus, sole traders and company managing directors — despite the suspension of the obligation to file for insolvency — as well as persons responsible for the organisational liability of certain corporate bodies are not entirely out of danger, even in light of the limited measures introduced by […]
Covid-19: Obligation to File for Insolvency Suspended for UG, GmbH, GmbH & Co. KG, AG and Registered Associations

When Does It Apply and When Does It Not? The so-called Covid-19 Insolvency Suspension Act (COVInsAG) entered into force retroactively as of 1 March 2020 and, subject to certain conditions, suspends the obligation of managing directors or board members to file for insolvency. It also limits, as an accompanying measure, the liability of corporate bodies […]
Commercial Ban on Large Stores Is Unconstitutional

The Bavarian Administrative Court found the ban on commercial activity by stores larger than 800 square metres to be unconstitutional. According to the court, the rule prohibiting the opening of shops larger than 800 square metres as part of the measures against the coronavirus violates the principle of equality enshrined in the Basic Law, because […]
Online Court Hearings in Hungary

The government decree issued on 31 March contains provisions that entered into force during the state of emergency in relation to certain procedural matters. The key points concerning court proceedings are summarised below: The regulation provides that the state of emergency does not affect time limits unless otherwise specified. This means that the statutory time […]
5 Things That Should Change After the Coronavirus

The ongoing Covid-19 virus is already changing our everyday lives. Despite all the negative aspects of this pandemic, it could also bring about some long-awaited positive changes in public administration and the justice system. 1. Court Hearings by Video Conference As lawyers, we have already been in digital contact with the courts for some time. […]
What is the state of detention conditions in Hungary?

According to an order of the Higher Regional Court of Nuremberg dated 23 December 2019, future transfers of prisoners to Hungary may be made subject to specific requirements concerning detention conditions. In extradition proceedings concerning a Hungarian prisoner in Germany whose surrender to Hungary was sought, it was argued that, due to overcrowding in the […]
BREAKING: No Oral Hearings in Hungary

Pursuant to Government Decree No. 45/2020 (III.14), the government has ordered extraordinary court recesses. Measures are to be taken to prevent and respond to the mass epidemic that endangers the safety of life and property, and to protect the health and lives of Hungarian citizens. Accordingly, Hungarian courts will not hold oral hearings, preparatory hearings, […]
German Federal Court of Justice (BGH): Managing Directors of a German GmbH Do Not Owe a “Duty of Loyalty” to the GmbH’s Creditor

In its judgment delivered on 7 May 2019, the German Federal Court of Justice (Bundesgerichtshof, BGH) held that it is not possible to successfully pursue a damages claim against the managing director of a GmbH (German limited liability company) under Section 826 of the German Civil Code (BGB) for intentionally causing harm in a manner […]
Refusal to Cooperate with the Liquidator May Give Rise to the Unlimited Liability of a Hungarian Managing Director

In Hungary, holding executive officers of legal entities liable is a frequent issue in legal practice. In the past, the courts were not always consistent in this respect. Recently, however, our firm obtained a decision of fundamental importance, which established that a court may find an executive officer to have unlimited liability not by relying […]