Conference on Alternative Dispute Resolution 29-30 September 2022

The Board organised a national conference on alternative dispute resolution for the first time in 2016, followed by conferences in 2017, 2018 and 2019. The sudden and unexpected onset of the pandemic in 2020 made this impossible for two years.  On 29–30 September 2022 it was once again possible to organise this traditional and increasingly popular conference. The conference was held at the new headquarters of Magyar Nemzeti Bank in the Lámfalussy Sándor Conference Centre with 220 participants attending in person over two days, and as it was also available online, an additional 435 participants were able to join and listen to the Hungarian and foreign speakers.

The opening speech of the conference was delivered by Dr Erika Kovács, Chair of the Financial Arbitration Board, who welcomed the participants, including colleagues and prospective colleagues representing the profession, Hungarian and foreign speakers, invited guests both in the conference room and those following the conference live online.   She welcomed with particular deference Dr Judit Varga, Minister of Justice, and thanked her for her presence and her welcome speech in her capacity as the head of the Ministry responsible for the professional governance of consumer protection. She also welcomed Dr Csaba Kandrács, Deputy Governor of the Magyar Nemzeti Bank, whom she thanked for making the organisation of the conference possible. She also thanked Dr György Senyei, President of the National Office for the Judiciary and Katalin Kézdi, Managing Director of Wolters Kluwer Hungary Kft., the professional partners of the Magyar Nemzeti Bank and the Financial Arbitration Board for their support and contribution to the success of the conference. She then opened the 5th Alternative Dispute Resolution Conference and wished everyone a pleasant time, useful knowledge and fruitful networking.

The conference featured three keynote speeches. First, Dr Csaba Kandrács recalled the background and shared some thoughts on alternative dispute resolution, also mentioning the results of financial conciliation, as follows:

“Ladies and gentlemen, dear guests!

For seven years now, the Magyar Nemzeti Bank and the Financial Arbitration Board have been supporting the development of the Hungarian dispute resolution culture and using its own means to promote the wider penetration of alternative dispute resolution. In the spirit of this, this year – after two years of involuntary interruption – we organised the conference for the fifth time, as this forum creates an excellent opportunity for professional dialogue, which can result in a greater awareness of alternative dispute resolution in Hungary and abroad, and help citizens, organisations, institutions and enterprises to recognise the possibilities and benefits of out-of-court settlements in as many cases as possible.

The benefits of out-of-court settlements have been recognised by the institutional actors of the Hungarian financial sector in the more than 11 years of the financial conciliation. This is evidenced by the increasing number of settlements reached in the financial consumer disputes at their initiative during and outside the proceedings every year. This is a reassuring and positive result for us, i.e. the managers of the Magyar Nemzeti Bank, the institution supervising the financial sector.

Since 1 July 2011, more than 57,000 cases have been brought before the Board and more than 30,000 hearings have been held by my colleagues. We are constantly implementing IT enhancements to make our proceedings, paperless where possible, and our records and statistics accurate. From 1 January 2021, we also introduced fully electronic communication with financial service providers in financial conciliation, and from 3 January 2022, financial consumers are also able to submit their petitions and communications to us electronically online via the Board’s website.

The majority of consumers ask us for help each year with claims relating to financial market services, most of them against credit institutions, primarily in connection with financial services such as credits and loans, but there are also many cases relating to payments. Within financial market services the number and percentage of equity petitions formulated by customers unable to pay their debts in accordance with the contract through no fault of their own is significant each year. My colleagues try to help in such cases by mediation, i.e. classical intermediation between the service provider and its customer; however, they do not and may not make a decision. The empathy shown by service providers in this area is also encouraging, as evidenced by the settlements reached in 20 percent of these cases. Although insurance-related disputes lag behind financial market claims both in terms of number and proportion, it is the second most frequently petitioned financial service, especially in relation to liability and property claims. The number of disputes concerning investment and stock exchange services and the various funds remains insignificant, at less than 10 percent of all cases.

Every year there are new cases that deserve special attention. The number of cybercrime cases, falling within the topic of cyber security from the perspective of regulators and law enforcement bodies, has increased steadily from 2018 and more dynamically from 2020. Accordingly, the Board also encountered incidents resulting from phishing that have resulted in significant losses to customers. Both the Magyar Nemzeti Bank and the Board feel it important to provide customers with education, training and assistance due to the abuses arising in finances in general and particularly in digital banking. The fostering of financial awareness, education and information are the responsibility of the entire financial services sector, not only of the Magyar Nemzeti Bank. To this end we launched a number of programmes years ago to improve the financial literacy of customers and prospective customers. Already the youngest age group, i.e. primary school upper grade pupils and secondary school students can learn about finance from the textbooks and with the support of the Money Compass Foundation, set up by the Magyar Nemzeti Bank, from their teachers, skilled in this field as well as from the staff of the Magyar Nemzeti Bank during the Money Week thematic lectures.

The Board’s takes part in financial education in the form of regular training for university students and young people graduated in law and economy in the Financial Law Academy lecture series. The training was launched in September 2019 and to date it has been attended and is attended at present by more than 500 students. Its professional programme is delivered by the Board and it aims to introduce young professionals and interested students to the practical operation of the financial sector, providing a comprehensive overview of the world of credit institutions, financial enterprises, insurance companies, funds, investment and stock exchange service providers. Here, they can learn from expert practitioners experienced in the relevant subjects, which is not only useful in their daily lives, but the knowledge of which can also stimulate their interest in establishing closer professional links with finance and in working in the financial sector, and thus providing financial institutions and the Magyar Nemzeti Bank with replacement. Since 2014 we operate a network of Financial Advisory Offices in 18 county seats across the country and cooperating with civil organisations we provide free advice to all Hungarian citizens to help them make the right decisions about their financial products. Our consultants inform them about the characteristics and risks of the products. Relying on the staff of the advisory offices financed by us, we also ensure that consumers involved in the initiation of individual disputes can easily and free of charge submit their petitions to the Financial Arbitration Board, where financial conciliation services are available also free of charge.

Accordingly, the Magyar Nemzeti Bank supports financial consumers in a number of ways in finding their way among the different products and services offered by the financial market. It regularly publishes professional articles on financial topics, aimed at providing information and presenting real cases, which serve as lessons for all of us. The Board is also committed to producing such professional articles, and thus its members regularly write articles on napi.hu, pénzcentrum.hu, origo.hu, vg.hu and index.hu portals, providing information and sharing knowledge on current financial issues. Those contain useful information on different types of savings, the benefits of credit protection insurance, important insurance issues for car owners, the online consumer dispute resolution procedures for financial services concluded online, and the unexpected financial debts that may arise in the event of inheritance. The most topical issues included articles on the negative consequences of remaining in the moratorium and the risks posed by phishing.

Dear Guests, Dear Colleagues! I sincerely hope that the presentations at today’s conference will also contribute to raising awareness and provide an excellent forum for the exchange of experiences. I would like to thank our speakers for accepting our invitation and supporting our efforts with their high quality presentations! I wish everyone a successful participation and a pleasant time!”

The Minister of Justice, Dr Judit Varga, also delivered a welcome speech, mentioning that according to the National Avowal, “the common goal of citizens and the State is to achieve the highest possible measure of well-being, safety, order, justice and liberty”. The fundamental duty of the state is to enforce citizens’ rights, including consumer rights. The importance of consumer protection is also shown by the fact that the Fundamental Law mentions consumer rights as a fundamental right, i.e.: “Hungary shall ensure the conditions for fair economic competition. Hungary shall act against any abuse of a dominant position, and shall protect the rights of consumers” – she said.

The overall aim of the state’s consumer protection activities should be to operate programmes that increase consumer confidence, provide long-term sustainable protection against various abuses, give consumers the tools to enforce their individual rights and put citizens, as consumers, in the focus of these efforts – she noted. It achieves the foregoing through measures that serve consumers efficiently and in earnest, guarantee compliance with the consumer protection laws, ensure the safety of exchanges of products and services, provide full information and help to shape informed consumer attitudes, protect consumers’ rights and, last but not least, ensure access to sufficiently fast and efficient alternative dispute resolution opportunities free of charge or at low cost.

In her speech, she pointed out that consumer protection, and including alternative dispute resolution, is closely linked to economic and social impacts, and as the latter changes from time to time, the regulatory system, substantive and procedural rules of consumer protection should be regularly reviewed, and during such review the EU consumer protection legislation should be also taken into consideration. It is worth examining proven foreign solutions and practices, and after a proper evaluation of these, consideration should be given to transposing them, in whole or in part, into domestic legislation and applying them in practice. In addition to the foregoing, action against unfair commercial practices must be ensured and strengthened from time to time, both at regulatory and institutional level, together with the powers of public authorities to protect consumers and improve the consumer protection system – she said. 

However, effective consumer protection cannot exist without informed consumer behaviour. Consumers need to know the means of enforcing their rights and the actors in the institutional system of consumer protection that can help them in the event of a specific consumer dispute. In parallel with this, the visibility and strength of the consumer protection authority, i.e. the European Consumer Centre, should be increased. Enterprises that act against consumers’ interests should and can be made to comply with the law not only through consistent sanctioning practices, but also by encouraging them to obtain a consumer-friendly rating. The right methods of this should be identified, which help businesses develop and implement innovative ideas and solutions in their daily practice to achieve consumer trust and satisfaction – she said.

She mentioned that the priorities and objectives of consumer protection are defined in the consumer protection policy of the government in power. Pursuant to Article 119(6) of Government Decree No 182/2022 (V.24.) on the duties and powers of the members of the Government, the Minister of Justice is the member of the Government responsible for consumer protection since May 2022. She noted that the government treats it as a priority to protect the rights of consumers, represent and enforce the rights of Hungarian people, families and consumers.  She emphasised that technological development, the digital world and market changes also pose challenges to consumer protection, and therefore guarantees must be developed to ensure the enforcement of the rights of Hungarian consumers. She said that in the future, consumer policy would focus on four areas: digital consumer protection, child protection, accessibility of consumer protection, and support for the development of a uniform judicial practice. She explained that the Digital Freedom Committee had already been set up in the Ministry to ensure transparency, the right to fair proceeding and the enforcement of competition law principles also in the online space. The guiding principle for digital consumer protection will be that what is forbidden offline is also forbidden online.

The minister also mentioned that the Hungarian consumer protection system consists of three parts: the first is the administrative area, where the tasks are performed by government agencies, the second is the network of conciliation boards, and the third is the activity of consumer protection associations. She said that the ministry plays a role in the professional management of consumer protection. This includes the identification of focal points, while inspection and official measures will remain with government agencies. She mentioned as an example that the audit plan is defined in the ministry and implemented by the government agencies. She also noted that particular attention is paid to groups of consumers vulnerable based on their age, areas where the number of complaints is especially high will be inspected and dangerous products on the market will be also identified. Finally, she thanked for the invitation and wished all participants a successful meeting.

The third welcome speech was delivered by the President of the National Office for the Judiciary, Dr György Senyei, who referred back to the beginning of the in-court mediation, which started in 2012, and mentioned that this type of alternative dispute resolution still exists and operates in the court system, although there have been significant changes in the last three years. He said that during the two years of the pandemic, the courts were also forced to interrupt their activity, and the new Code of Civil Procedure, which entered into force on 1 January 2018, has resulted in a significant fall in the number of cases brought before the courts. Accordingly, the demand for in-court mediation has decreased proportionately. He mentioned that the legislative environment has not changed, that judges and secretaries previously trained in mediation are still working in the organisation, and that in the past two years additional colleagues have participated in mediation training and acquired such skills. Thanking for the invitation, he pointed out that Dr Turcsánné Katalin Molnár, judge of the Court of Justice, will give a detailed presentation on the developments in the field of court mediation.

The opening presentation of the conference, entitled New directions in consumer protection policy, was delivered by Dr Nóra Kupecki, Deputy State Secretary for Constitutional Legislation and Consumer Protection. She said that in this government cycle, Hungarian consumer protection will be transformed and made even more effective through a new approach, with the aim of guaranteeing the inviolability of Hungarian consumer rights both in Hungary and in Europe. “In addition to initiating legislative changes, we make efforts to ensure the protection of Hungarian people and families by using all the tools currently available to us in the field of consumer protection” – she emphasised in her presentation.

In her presentation, she described in detail the main points of the direction of consumer protection policy, including the developments in the legislative environment. Of the four main directions of consumer protection policy, she spoke about digital consumer protection and support for the development of a uniform judicial practice. She noted that in the former case, priority is given to the protection of consumers in the online space, which requires an increased presence of consumer protection, including rapid and effective action against abuses. The guiding principle is that what is forbidden offline should also be forbidden online. She noted that one of the priorities for the coming period will be to create the legal environment necessary for the effective implementation of the EU legislation currently being finalised. In addition, the authority will inspect the activity of online shops and compliance with the consumer protection requirements related to online spaces in the form of enhanced thematic inspections throughout the year. In relation to the uniform application of the law, she stressed that the review of the related legislative environment and the necessary legislative amendments are essential for the effective implementation of consumer protection policy, where the Consumer Protection Council has an important role to play. With a view to assisting the work of the Council in its work, a Consumer Roundtable was established, which held its statutory meeting on 18 July 2022. The Round Table, of which the Magyar Nemzeti Bank is also a member, contributes to solving the arising problems and to the development of a uniform judicial practice of the respective organisations by discussing current issues and developing specific proposals for solutions. It is the top priority of consumer protection policy to ensure that government agencies, in their capacity as consumer protection authorities, carry out their work according to nationally uniform criteria and principles, and to this end, several professional consultations have already been held asking for the submission of further proposals.

In her presentation, she referred to the package of proposals on the amendment of certain laws concerning consumer protection, including the establishment of an efficient and effective procedural mechanism, the amendment of the law on market surveillance of products and the operation of conciliation bodies. The amendment also facilitates that the authorised organisations representing the collective interests of consumers initiate representative actions against enterprises that breach national or EU regulations. She said that active consumer protection will continue to pay special attention to prevention, since many consumer problems could be solved if people were aware of their rights before they conclude a consumer contract. It is therefore crucial to raise consumer awareness and reach the widest possible range of the population. To this end, consumer protection education will be provided in interactive form in secondary school classes adjusted to the characteristics of the age group, as part of countrywide road-show of the trade day. Special emphasis is placed on acknowledgement of the activities of schools that contribute to the penetration of consumer awareness and knowledge. She presented the activities of the European Consumer Centre (ECC) within the Ministry of Justice, which provides substantive, professional and legal assistance in resolving cross-border complaints. In addition to dispute resolution, the ECC also provides consumer advisory services and plays an important role as a contact point in online dispute resolution. The number of cross-border complaints submitted to the ECC is increasing year by year, with around 2,000 cases handled annually. In 2021, they provided effective assistance for the enforcement consumers’ financial claims in the amount of HUF 87 million.

She stressed that they treat fair enterprises that pursue their business in compliance with the law and apply consumer-friendly solutions as partners. In order to foster compliant conduct, they continuously communicate with enterprises on consumer protection rules and changes to them. With a view to ensuring voluntary compliance, they held professional consultations with business representatives on interpretation and enforcement issues and provided information on the questions raised at several events. Finally, she emphasised that they take active consumer protection seriously, and that they regard all those as partners who help to make consumer protection even more active and strong, and to act to protect Hungarian people and families. She believes that the organisation of illustrious trade events such as the 5th Alternative Dispute Resolution Conference is essential for the further development of consumer protection.

Gábor Koós, qualified civil engineer and forensic expert made a presentation entitled “Forensic experts in alternative dispute resolution”.

He began his presentation by defining forensic science as a professional activity, the objective of which is to monitor changes in science and technology and, as a result, in society over the past decades. In court and administrative proceedings, legal problems have become increasingly intertwined with issues from other professions and therefore they are increasingly difficult to assess. In parallel with this there is a growing demand for the use of the achievements of modern science in disputes and evidence. He explained who can become a forensic expert, and then presented in detail the organisation and operation of the Hungarian Chamber of Forensic Experts, and the various professional sections. The experts are classified into 14 categories, based on more than 300 professional fields. The Housing and Construction, Country Planning and Tourism professional sections cover 18 professional fields and currently have 588 members, typically civil engineers or architects.  Many of the forensic experts classified in this category are also members of the Expert Body for Performance Certification (EBPC), which is authorised to provide forensic expertise under a separate law – he said. The purpose of establishing the EBPC in 2013, was twofold: to protect the most vulnerable micro and small businesses, to facilitate payment for the work they perform, and to prevent the unlawful and fraudulent use of performance guarantees (bank guarantees, insurance).

The tasks performed by EPBC is a special sub-field of forensic services. This organisation helps parties in construction design and construction contracts to settle construction disputes. When the EBPC is contacted concerning a dispute related to the issuance of the certificate of performance, the settlement of the contractor’s fee or the calling of a bank guarantee, the EBPC three-member expert panel of forensic experts will decide, by examining the technical performance (on the basis of the documents submitted and an on-site inspection), to what extent the disputed performance has been completed and therefore to what extent the contractor is entitled to the fee, or, in the case of calling a bank guarantee, to what extent the call is justified. The primary aim of the expert opinion is to reach an agreement between the parties on the basis of the expert’s findings. If no agreement is reached, the claim may be enforced at the court on the basis of the EBPC’s expert opinion with shorter procedural deadlines and under special procedural rules. Upon request, the court may order the amount in dispute to be deposited as a temporary measure. In addition to the foregoing, the EBPC’s expert opinion may also be used in arbitration and conciliation proceedings. Since its establishment, it received 252 applications for the call of bank guarantees in the total disputed amount of HUF 15 billion, of which unjustified calls on bank guarantees were prevented in the amount of over HUF 5 billion in, effectively helping the stability and national economic efficiency of construction – he said.

Dima Alexandrova, lawyer and mediator (Founder, AdimaLaw Law Firm, Bulgaria) delivered a presentation entitled “Development of alternative dispute resolution in Bulgaria – challenges and areas of application”. She presented the historical development of alternative dispute resolution methods used in Bulgaria – mediation, conciliation and arbitration – and the practical application of those. She described in detail the types of disputes involved in alternative dispute resolution, the legal background and limitations of those, in the light of existing and future legislation. She noted that in Bulgaria the institutional system of arbitration courts and the arbitration procedure is the most widely used alternative dispute resolution method and that there are a number of arbitration institutions in the country. The legal institution has a long history: the first arbitration court was set up in 1896, under the Chamber of Commerce and Industry. At present, the Code of Civil Procedure explicitly allows the parties involved in financial disputes to agree to have the dispute settled by the court of arbitration. However, an exception is made where the dispute concerns a right in rem or the possession of real property, a maintenance obligation, or a right arising out of an employment relationship, or a dispute in which one of the parties qualifies as consumer. On the subject of conciliation, she explained the applicable organisational structure and the scope of disputes that can be settled through conciliation. In Bulgaria, there are consumer protection conciliation committees in all regions of the country, which may proceed in disputes between consumers and merchants or service providers, either in general or sectoral issues. These disputes mainly concern warranties, complaints or unfair contractual terms. In addition, the Act on Payment Services and Payment Systems provides for the establishment of the Payment Disputes Conciliation Committee, which can proceed in payment disputes up to the amount of BGN 25,000 (approximately HUF 5.3 million).

The main topic of the presentation was mediation as an alternative dispute resolution method. In the historical overview, she noted that the first forms of mediation existed already in the Ottoman Empire, but the first statutory regulation was adopted in Bulgaria only in 2004. The directives and regulations of the European Parliament and the Council, the recommendations of the European Council and the legislation transposing them into national law have brought significant change. The presentation described the types of mediation used in Bulgaria, according to the method used by the mediator and the subject of the mediation, which may include – among others – civil commercial, labour, family, inheritance, administrative or consumer disputes. In her presentation, she described in detail the organisations that use these proceedings and the process and legal effects of the mediation procedure. In hers presentation, she outlined the regulatory proposals on mandatory mediation, under which in certain groups of cases pending before the courts, the parties would be obliged – either compulsorily or at the discretion of the court – to attempt to settle the dispute through mediation. She concluded her presentation by sharing with the audience her personal experience of court mediation and out-of-court dispute resolution.

Dr habil Judit Glavanits, Senior Lecturer, Deák Ferenc Faculty of Political Science and Law, Széchenyi István University delivered a lecture entitled “Alternative Dispute Resolution – Training and Research across Hungary”, which presented the responses to the increased attention to alternative dispute resolution activities in the field of training and research in Hungarian higher education in an informal way, creating a fresh and cheerful atmosphere at the conference.  In her presentation, she touched upon and sought answers to the following questions: Why is training important in the area of alternative dispute resolution in Hungary? In which cases may any of the alternative dispute resolution forms provide a solution? Which fields are covered by alternative dispute resolution? Why do people choose alternative dispute resolution? What are the main differences between conciliation and mediation? What are the training standards and requirements for arbitrators and mediators in Hungary? How can scientific research help to improve alternative dispute resolution?

In her introduction, the speaker provided statistical data to support her statement that in Hungary an increasing proportion of the 25-64 age group is enrolled in some form of university education or further education. There are several underlying factors that determine the motivation of participants in these courses: Setting out from Erik H. Erikson’s theory of intellectual curiosity lasting until adulthood and the desire for professional perfection, but she did not forget “external” compulsion either. She mentioned mandatory in-service training and “mandatory training on a voluntary basis” as examples of the latter. As a basis for training related to mediation she mentioned that people will only be able to acquire certain skills as they get older. These include, for example, certain psychological or social skills (showing empathy, cooperation, producing a positive effect in others) that are the basis of successful mediation and can be successfully developed through training. Despite the fact that for the time being there is no consensus in the definition of alternative dispute resolution, she highlighted the growing importance of activities in this field. She explained in detail why more and more people opt for alternative dispute resolution instead of going to court. Among the reasons she mentioned that litigation is expensive, complex and lengthy. In legal proceedings, conflicts can be assessed purely from a legal perspective, which means that the psychological or emotional aspects of the conflict are ignored. This can lead to a hostile atmosphere between the parties, which further deteriorates the relations burdened by conflicts from the outset. A court judgement potentially deepens the relationship between defendant and plaintiff rather than resolving the dispute between the parties. Litigation is a kind of zero-sum game: if the court “agrees with” one party, the other is necessarily wrong, while reality is often more complex or has several aspects. Dr Judit Glavanits identified conciliators and mediators as the best known active players in the field of alternative dispute resolution in Hungary. Conciliators include the members of the arbitration boards operating alongside the county and metropolitan chambers of commerce and the members of the Financial Conciliation Board. Among the mediators, she mentioned mediators in criminal cases and other court cases as well as mediators in healthcare and child protection. She also described in detail the education requirements and training expectations for persons engaged in such activities by presenting the relevant legislative background.

The increased demand for mediation and the prescribed qualification requirements have also led to an increase in the number of training institutions. This type of education is available all over Hungary, and thus those who wish to enrol in training do not have to travel long distances to take part in this type of education.  The speaker then spoke about how research can help the improvement of alternative dispute resolution: the public must be made more aware of the mediation and arbitration board procedures, it is important to have a better understanding of practical problems (supervision and the importance of discussing the cases), transposition of international best practices and compliance with requirements concerning the approximation of laws. She mentioned the best known Hungarian research workshops in the field of ADR. Finally, she identified data collection as an important factor for the future. She is convinced that the purpose of the data related to the number, success and failure of arbitration and mediation cases is to help shape the future, and the more data that is available, the more we can learn from it.

The next presentation was entitled “Financial Arbitration Board and Alternative Dispute Resolution in the Czech Republic” delivered by Lukáš Vacek, Deputy Chair of the Financial Arbitration Board of the Czech Republic and a member of the FIN-NET network steering committee since March 2013. In his presentation he gave an overview of the Czech alternative dispute resolution system, and particularly of the functioning of the Financial Arbitration Board. He explained that the alternative dispute resolution system in the Czech Republic has been developed over the past 20 years. Alternative dispute resolution may be carried out by the authorities established by law, such as the Financial Arbitration Board of the Czech Republic, the Energy Regulatory Office, the Czech Telecommunications Office, the Czech Trade Control Authority, and, with the permission of the Ministry of Industry and Trade, the Czech Bar Association, the Czech Consumer Association, the Ombudsman Office of the Czech Insurance Association; however, the rules of procedure applicable to these organisation vary.

He said that the Financial Arbitration Board was established on 1 January 2003, which initially dealt not only with consumer disputes. At present its competence covers only the out-of-court settlement of consumer disputes. Cases referred to the Financial Arbitration Board do not cover the entire financial market; e.g. disputes relating to property insurance fall outside its competence.  The Board is not a supervisory body. The Board’s office is financed by the state budget and currently has around 55 employees, 40 of whom are lawyers.  He described the disputes that fall within the competence of the Financial Arbitration Board. Consumers can choose whether they take their case to the arbitration board or to court. The consumer must sign the submission initiating the proceedings, following which the declarations may be made electronically, over the phone or by e-mail. The petition is not binding on the arbitration board, i.e. a decision differing from the petition may also be adopted. It is not mandatory to hold a hearing. The cases are usually decided on the basis of the documents. The deadline for the proceedings is 90 days, which commences from the date when all the necessary evidence is available. The evidence is collected by the arbitration board.  The financial service provider is obliged to participate in the proceedings, failing which it may be fined. The decision is independent, the Board is not a supervisory, consumer protection body.

The arbitration board may issue a binding decision, to which both parties can object initially. The objection will be judged by the same arbitrator in the first instance, but the parties may also appeal to the courts for remedy. A specific feature of the proceedings is that it is free of charge for consumers. However, if the petition is granted at least in part, the financial service provider is obliged to pay a penalty amounting to 10 percent of the amount awarded to the petitioner, minimum CZK 15,000 (about EUR 600), to the state budget, even if the subject of the dispute is of non-financial nature. All final judgements on the merits are published in Czech in the Collection of Resolutions on the website, with anonymised consumer data, while the name of the financial service provider and the product is disclosed, which may be an incentive for the financial institution to comply. Legal representation is not mandatory for either of the parties. In connection with this, he noted that the involvement of lawyers in the proceedings usually complicates the case. In the case of judicial remedy, the proceedings continue between the consumer and the financial service provider, with the consumers’ situation changing to the extent that they must participate actively in the court proceedings. At present when the court judgement in the remedy proceedings differs from the arbitration board’s resolution, the judgement is not published, albeit there is an intention to make them public in the future. He said that the Board also deals with cross-border disputes. As regards the statistics, he said that in 2021, an agreement was reached in the vast majority, i.e. 77 percent, of the cases and the Board adopted around 100 binding decisions. He concluded by saying that the Board also provides advisory services. It receives more than 5,000 enquiries a year in various forms (online, over the phone, by e-mail, in some cases Facebook), to which they respond within a few days. 

For the presentations of the first day of the conference see the Magyar Nemzeti Bank’s YouTube channel

The second day of the conference was opened by Katalin Kézdi, Managing Director of Wolters Kluwer Hungary Kft:

“Dear Conference participants, dear Colleagues,

When we were approached by the organisers asking us to support the event as a professional partner, we were delighted to do so. The Magyar Nemzeti Bank and the Financial Arbitration Board, which operates within its organisational framework, organised the fifth Alternative Dispute Resolution Conference, and as every year, we consider it of the utmost importance to support this event (…) The monthly updated database of the Repository of Resolutions, stored in Jogtár® (a repository of the effective acts), maintained by Wolters Kluwer Hungary, contains more than 330,000 anonymised court judgements, some of which are published by the courts, and some of which are redacted, dating back to 1975. In addition to the judgements of Hungarian courts, the database also includes decisions of the European Courts, the MNB, the Hungarian Competition Authority and the Financial Arbitration Board. After opening the individual documents, a graph is drawn to survey the relationship network of the court decisions. 

The graph belonging to the resolutions shows two types of relationship between the individual materials in the Repository of Resolutions, i.e. the case history relationship and the relationship between the redacted resolutions and the underlying individual resolutions on the merits. I often wonder what percentage of those just over 330,000 decisions really had to end up in the courts. Could there have been a better place, a better way to settle the disputes? How much time and money did all this consume? And who is the winner here? Is there a real winner? How limited are judges, either in terms of time constraints or alternative solutions and options?

I am looking forward to the presentation on the latest developments in court mediation in today’s programme. It is not by chance that we regularly publish specialist articles and present studies on general dispute resolution on Jogászvilág.hu. And it is not accidental either that we have recently published a book on mediation. It is also not by chance that we are currently preparing a Mediation module on Jogtár®. As the managing director of Wolters Kluwer, I encounter disputes almost every day, whether as an involved party, mediator or “arbitrator” with clients, business partners, colleagues, international colleagues or my adult children. I am proud that until now we managed to resolve the conflict every time. I am excited to learn about the experiences of alternative dispute resolution in other countries and the history of their development in today’s programme.

Finally, let me share with you my proven personal best practice. There has not been a year since 1992 that I have not watched The Last of the Mohicans, an American adventure film several times. It is not just Daniel Day-Lewis’ memorable performance or the soundtrack that makes the story appealing to me. There is a scene that I watch before every major decision I make, even weekly, if necessary. Each time I learn and understand something different from the story. And I can identify the actors in any controversial situation. Thus I can model the outcome and consequences of my decision. But what is happening here: Magua asks the Huron chieftain, Tamenund ”Sachem”, to do justice and execute his English prisoners in revenge for the death of Magua’s family. Hawkeye, with the old peace treaty in his hand guaranteeing coming to no harm, voluntarily goes to the Huron camp and asks Sachem to release the prisoners. Tamenund decides to burn Cora alive at the stake to satisfy Magua’s desire for revenge. Magua should take the other girl, Alice, as his new wife. The British officer is free to leave as a sign of peaceful intentions. Hawkeye offers his own life in exchange for Cora, but - here comes the twist: Duncan Heyward offers himself for the life of the girl he loves. Sachem agrees to the exchange. This is when events accelerate. Magua drags Alice along ®Major Heyward is taken to the stake, ®while Hawkeye and Cora are released. Hidden outside the village, Uncas goes in search of Magua. Hawkeye, having reached a safe distance, turns back and shoots Heyward to save him from torture, then goes after Uncas and Magua with Cora and Chingachgook. Unkasz catches up and attacks Magua’s team, but Magua kills him in a duel. Alice, being desperate, throws herself into abyss. The late-arriving Hawkeye and Chingachgook destroy the Huron group, and Chingachgook also kills his son’s killer Magua in a duel.

I think even the whole time of a conference time would not be enough to assess the case from all angles. Could there have been a better place, a better way to settle the disputes? Who is the winner here? Is there a real winner? How limited are the decision-makers, either in terms of time constraints or alternative solutions and options? For these reasons as well, it is a great honour for me to open the second day’s programme. I wish you a successful conference!”

Dr Piruz Sargasyan (Financial System Mediator, Office of Financial System Mediator, Armenia) gave a presentation entitled “The development of Alternative Dispute Resolution in Armenia, the experience of Financial System Mediator “ The speaker, who holds a law degree and a Ph.D., has gained professional and management experience in various areas of the Central Bank of Armenia and has played a significant role in the implementation of the Armenian financial reform. In 2008, she was appointed to a Financial System Mediator. As a recognised international expert, she shared her experience of alternative dispute resolution in financial markets at numerous conferences.

In the introductory part of her presentation, she presented the history of the development of ADR in Armenia. She explained that the idea of developing alternative options for dispute resolution first emerged as early as in 1990 to reduce the burden on the courts. The system was developed based on proven international models and ombudsman systems, also paying special attention to the special features of Armenia. The act on ADR procedures was adopted in 2006 and it has been amended several times since then. Previously, arbitrators only dealt with consumer disputes, while from 2020 they also proceed in disputes involving sole traders and micro-enterprises. In Armenia, the Central Bank of Armenia (CBA) is the regulator of the entire financial system. The protection of the rights of financial consumers is and has always been of the utmost importance to the CBA. The Financial System Mediator institution, an organisation independent of the government, has been operating since 2009. The financial basis of its operation is provided by compulsory contribution of financial institutions. The dispute resolution procedure is free of charge for the petitioners.  The main objectives of the Institute include the development of recognition and trust, raising financial awareness, efficient cooperation with financial market actors and the adoption and sharing of international experience.

The number of complaints and petitions received by the Institution has shown a steady dynamic increase over the period of 2009-2022. In 2009, the Institution received 378 complaints and 57 petitions, while in 2021 the number of complaints and petitions rose to 15,399 and 5,994 respectively, which may obviously be regarded as a success. The Institution has 38 working days to examine a submission; this deadline may be extended by 14 working days. According to a survey, 73 percent of customers highly appreciate the service provided by the Institution.

The speaker attributes the success to the fact that, in addition to having adopted international models, great emphasis has been placed on giving due consideration to the special features of Armenia. Dr Sargasyan described Armenians as being talkative, keen on frequent and personal communication, although younger generations are also open to using digital techniques. Successful operation is attributable to the support of the CBA, the dedicated and enthusiastic teamwork, the use of mediation techniques, and the implementation of educational programmes to increase consumer knowledge. In the future, the Institution will expand its operations and strengthen the use of online techniques, thereby ensuring easier access to services for customers – she concluded her presentation.  

Dr Turcsánné Katalin Molnár President of the Székesfehérvár Court of Justice talked about the Hungarian model and new trends of court mediation after 2019 in her presentation entitled Novelties and recent developments in court mediation 2019-2022. She stressed that mediation is available in all courts and in the larger district courts. Accredited training for judges and court secretaries performing mediation is organised within the courts, but they also attended external courses. Around 500 judges and the court secretaries participated in mediation training. In the courts their work is assisted by coordinators. From 2020, the pandemic also had an effect on the work of mediators. Similarly to lawsuits, the number of cases referred for mediation also declined. It was noticeable that the parties involved in the mediation proceedings became increasingly more reserved. During this period, the legal environment also changed, as a result of which the responsibility of the coordinator shifted to the president of the court. Court presidents developed internal regulations to support mediation work. The speaker presented statistical data on the developments in the non-litigious court procedure, the related personnel and material conditions. She said that there are currently 148 appointed court mediators, 60 of them are judges and 88 are court secretaries. In the period of 2019-2022, 59 new appointments (36 judges and 23 court secretaries) were made and 27 appointments were terminated (21 judges and 6 clerks).

Academic work related to the legal institution was presented and the audience was given an overview of the training courses held over the last four years. From 2022, training courses and the presentation and promotion of alternative dispute resolution and the work of court mediators in various forums (e.g. universities) once again took place with personal attendance. The presentation also gave the audience an opportunity to learn about the experiences gained to date and the plans for the future. Two court mediators talked about their experiences on a video recording, mentioning that during court mediation, parties share information with the mediator that they cannot say in a lawsuit. Participation in mediation also helps the parties to reach an agreement in a court action, and the mediator can acquire useful skills during the mediation work. Judges explain the option of court mediation to the parties in the course of civil proceedings, in view of the fact that participation in mediation – even if no agreement is reached – has a positive effect on the parties’ behaviour in court and makes them more cooperative. After outlining the achievements and the difficulties encountered, it can be concluded that court mediation plays an important role in dispute resolution – she concluded.

Prof. Dr Cemile Demir Gökyayla made a presentation entitled “Experiences of mediation and arbitration in Turkey”. Prof. Dr Cemile Demir Gökyayla – Head of the Department of Private International Law at Bilgi University in Istanbul, arbitrator in international arbitration, consultant, member of the ICC Turkish National Community, member of the ICC Arbitration and Alternative Dispute Resolution Committee, member of the National Judicial and Advisory Committee of the Istanbul Arbitration Centre – first spoke about the fact that in the last decade Turkey has placed special emphasis on the use of alternative dispute resolution methods, especially mediation and arbitration. According to data from the Ministry of Justice, the workload of courts in Turkey showed an increasing trend between 2012 and 2021. According to figures published on 11 September 2022, there were almost 2.5 million pending court cases; moreover, the number of pending cases exceeded the number of closed cases in the past four years. In the past 10 years the number of litigious cases rose by 55 percent. These figures well illustrate the current caseload of courts in Turkey. The Ministry of Justice therefore supports alternative dispute resolution methods, which aim to help parties resolve disputes amicably and reduce the workload of the courts.

She then described in detail the main rules and features of mediation in Turkey. She touched upon the external factors influencing Turkish legislation, mentioning that the Bulgarian, Slovakian and Hungarian regulation also had an impact on Turkish laws. Accordingly, the Turkish mediation system follows European practice. While presenting the legal environment, she mentioned that the Act on Mediation had been adopted in 2013, followed by the Directive applicable to the Act on Mediation and the Turkish Mediation Code of Ethics in 2018. Subsequently, the use of mediation was prescribed on a mandatory basis in labour law, consumer protection and finally in commercial disputes. When reviewing the detailed rules of mediation, she mentioned, among other things, that both before and during the litigation, the parties have the option to use mediation and, similarly to the Hungarian system, judges inform and encourage the parties to use this form of dispute resolution. Upon resorting to mediation, the lawsuit is suspended for three months, which can be extended for a further three months. The procedure is subject to a fee, but it may also be waived at the judge’s discretion. The mediator is independent, impartial and chosen jointly by the parties. The procedure is freely shaped by the parties within the legal framework, and in addition to the parties involved, representatives and experts may also participate in the hearing. If it becomes clear that no agreement can be reached, the mediator may initiate the termination of the procedure, and the parties have the option to end the mediation at any time. The mediator is not obliged to propose a solution, but if he does, the parties are not obliged to accept it. She also described in detail the rules on mandatory mediation. In labour, consumer and commercial disputes, the parties must try to settle the dispute prior to going to court, failing which the case will be dismissed by the judge. The mediator is either appointed jointly by the parties or the plaintiff contacts a mediator included in the list of registered mediators. If the other party does not accept the selected mediator, the Mediation Department of the Ministry of Justice will make the appointment. Mediation must be completed within 4 weeks in the case of labour disputes and within 8 weeks in the case of commercial disputes, but as either party can end the mediation at any time, wasting time or lengthy litigation is uncommon. The requirements for mediators include at least 5 years’ experience, 84 hours of specialised training, registration and a successful examination. By contrast, the use of a mediator is not mandatory in arbitration, unless the parties stipulate it.

The presentation also summarised the sanctions and incentives related to mediation. For example, if a party fails to participate in the mandatory mediation without a plausible justification, it will not be entitled to the reimbursement of the legal costs and attorney’s fees even if it otherwise wins in the litigation. And if neither party cooperates, they may have no claims for costs against each other in the litigation.  Incentives may include, for example, that the fees for the first two hours are reimbursed by the Ministry of Justice, the costs of the mediation procedure – unless agreed otherwise – are paid by the party losing the case, and thus the plaintiff does not have to pay a fee at the beginning of the procedure, lawyers charge a lower VAT rate (8 percent instead of 18 percent) and the term of limitation is suspended for the duration of the procedure. The speaker emphasised that the most important feature of the mediation procedure is that the agreement is enforceable, for example by seizing the debtor’s assets.

The second larger part of the presentation described the characteristics of arbitration, the governing legal environment and the institutional system. She pointed out that since the establishment of ISTAC (Istanbul Arbitration Centre) in 2015, arbitration has become increasingly known in Turkey, and it is one of the main pillars of the Turkish alternative dispute resolution strategy. And given Turkey’s geographical location, this organisation may become the centre for the settlement of international trade disputes. The organisation is impartial and independent, and proceeds both in international and domestic cases, with the international and domestic cases accounting for 30 percent and 70 percent of all disputes, respectively. 3 of the 5 judges acting in international cases are arbitrators with international experience. Cases where the amount in dispute is small are handled by one arbitrator. In her presentation, she also presented a breakdown of the type of cases received by ISTAC.

In the final part of her presentation, she talked about the “ISTAC Med-Arb” project. This is a framework for cooperation with mediation centres, and agreements have been already signed with more than 130 mediation centres. The objective of the programme is to increase the number of cases settled through mediation or arbitration in the future. The main point is that in their commercial disputes, the parties first try to reach an agreement through the mandatory mediation procedure, but if this fails, they initiate arbitration and refer the case to ISTAC. The mediator who acted in the case may, subject to the parties’ express written consent, also act later as an arbitrator in the case. The advantage of the project is that disputes can be resolved within 3-8 months, depending on the subject matter and complexity of the case. The Med-Arb project is part of Turkey’s alternative dispute resolution policy.

Dr Kinga Gáspár (Judge, Kaposvár District Court) delivered a presentation entitled “Survival of ancient North American Indian cultures - dispute resolution at the Navajo Indians”. The judge, who also holds a second degree in European law, completed the accredited training course for court mediators organised by the Hungarian Academy of Justice in 2019. In 1992, she went to the North Dakota Indian Reservation in the United States as part of a grammar school exchange programme. The 11 months she spent there had a profound impact on her life later on. Later she returned as a judge to study tribal jurisdiction of the court of the Turtle Mountain Indian Reservation. After completing the mediator course, her career and professional interest in the Indians’ land turned towards learning about the circle models and the conciliation court.

In the first part of her presentation, she gave an overview of the history, social situation, special practices, jurisdiction and reconciliation systems of the Native American population in the United States. Although exact figures are not available, it is certain that the pre-Columbian Indian population of many millions declined dramatically over the centuries due to the violence and “civilising” efforts of the non-native population. This trend halted only in the 20th century, mostly due to the development of the law. Under the Citizenship Act of 1924, all Indians were granted citizenship. Since 1978, it is a statutory right of Indians to choose the form of education. Currently, 6,790,000 people, i.e. 2 percent of the US population, profess themselves to be Native American, 390,000 of which are Navajo. The number of registered tribes is 574. Indians mostly live in the 326 reservations, i.e. quasi “small states”, which also are a special legal autonomy. Indians are one of the poorest layers of the society, with below-average levels of education and many suffering from mental and social problems. The speaker presented a spectacular short film of documentary value, showing the powwow ceremony (a dancing event aimed at the transmittal of identity) and the “sweat lodge” (a place of prayer and absorption). We learnt that the pursuit of harmony, respect for the elderly and the transmission of ancient wisdom are central to Indian culture.   

In the second part of the presentation, she described the Navajo conciliation process. The institutional framework for this is ensured by law since 1982. The conciliation programme operates alongside 12 courts of first instance. The procedure can be initiated in writing, on a form, for a fee of USD 80, with the aim of restoring harmony and facilitating the conclusion of an agreement or “compromise”. The conciliator must be able to speak and write in the Navajo language. The involvement of a lawyer is not permitted. The process of conciliation follows the ancient tradition. The rapporteur introduces the parties and summarises the case. This is followed by prayer while burning sage or tobacco. All people sitting in the circle can state their case, but only one person can speak at a time – or exercise the right to silence – and that is the person holding the “speaking object” (e.g. a stick, a pen). The conciliator ascertains that everyone understands the problem. Speaking is not compulsory, as long silence helps absorption. The agreement resulting from the consensus is put in writing and the conciliator follows up the developments. The agreement can be amended subsequently as well. The aim of the procedure, known as the circle model, is not punishment but restorative justice, i.e. an approach to justice that seeks to repair harm by providing an opportunity for those harmed. Attempts have been made to use circular models in Europe, including Hungary as well. Further examination is needed to determine to what extent and in what way the procedure can be integrated in the European culture of debate.

Finally, the speaker briefly presented two cases where the procedure was successful. In one case, a solution was found for the case of an alcoholic son abusing his mother using an approach of affection. In the other family law case, the issues of paternity and child maintenance were clarified and settled.

Ms. Lucija Lučka Skok, mediator, came from Slovenia representing the Mediation Centre of Slovenian Insurance Association. She gave a presentation entitled “Alternative Dispute Resolution in Slovenia and the Slovenian Insurance Association” on alternative dispute resolution in Slovenia, and more specifically on alternative dispute resolution in the insurance sector. On the one hand, the speaker gave an overview of the different dispute resolution methods and solutions used in Slovenia, including their legal background, a historical overview and a description of the known actors in the field of ADR today, and on the other hand, she introduced the Slovenian Insurance Association, which is the forum for alternative dispute resolution in the insurance sector in Slovenia.

While explaining the history of the Slovenian ADR solutions, she said that 1928 was the first date when the Slovenian Chamber of Commerce established the first arbitration court based on the UNCITRAL rules. Later on, 20 years ago, mediation was launched in the Slovenia in various forms of solutions and organisations. This is how mediation in court commenced, which primarily sought to reduce the length of court proceedings by negotiation agreements between the parties. This was initiated by the court system, with judges participating in mediation on a pro bono basis in the early days. The legal background started to develop later. In 2009, an act on mediation in courts was adopted. A year earlier, in 2008, an act on mediation in trade and civil matters was adopted, which was the first act of this kind. This was followed by the one in 2009 and then by several others: In 2015, an act regulating the rules of mediation between parties outside the courts, the same year the act on insurers and insurance activities, in 2018 the family law act and 2021 the act on banks. As regards the current ADR solutions, she said that there are four types of alternative dispute resolution solutions in Slovenia. One of them is mediation, which is carried out both inside and outside the courts, while other mediation services are provided by the Association of Slovenian Banks, the Slovenian Insurance Association, the Slovenian Chamber of Commerce, the Mediation Centre of the Bar Association, and the centres for social workers and private mediators. The second form of ADR is arbitration, which is pursued by two organisations, the Arbitration Court of the Slovenian Chamber of Commerce, based on UNCITRAL and operating since 1928, and the Arbitration Court of the Triglav Insurance Company. The third ADR solution in Slovenia is conciliation, which is also commonly referred to as “MED-ARB” or “ARB-MED”, because of the combination of the characteristics of mediation and arbitration. Conciliation is carried out by the Slovenian Chamber of Commerce and private organisations. The fourth form of ADR is a special Slovenian solution, referred to as “early neutral dispute rating”, and is carried out by private organisations in the early stages of disputes, which resembles mediation the most, but it is somewhat different.

Moving on to the Slovenian Insurance Association, she said that this organisation has two roles: on the one hand, it mediates and on the other hand, it also acts as an insurance ombudsman. Its activities are governed by a number of legislative acts, including the Insurance Act, the Act on Out-of-Court Mediation, the Act on the Organisation and Establishment of the ADR Centre of the Slovenian Insurance Association, the Act on the Procedural Regulation of Domestic and Cross-Border Mediation and the Code of Conduct for Mediators. The two roles imply different activities and different procedures. Mediation may involve a dispute between domestic customers, cross-border service disputes, or claims between different insurers. In cross-border disputes between insurers and their customers, the Association proceeds in accordance with the rules of FIN-NET, as it is a member of this European forum. In domestic cases, disputes between insurers and their customers concern insurance contracts concluded or the payment of insurance claims or indemnity.

The procedure is not free, albeit only a low fee in the amount of EUR 20 is charged per proceedings. The procedure is initiated at the customer’s petition and it is continued with the appointment of a mediator and a choice between the Slovenian or English language. It can be conducted in writing, i.e. online or in person, but in all cases the statutory rules applicable to mediation must be followed. Participation in the procedure is compulsory for insurers, they have to cooperate, attend the hearing, respond to the petition, etc. The outcome of the proceedings, if it is a settlement, must always be recorded in writing. When the Association acts as an Insurance ombudsman, it never deals with matters relating to transactions that fall within the competence of the courts. In such cases it deals with disputes between the insurer and its customer falling within the Insurance Act and represent non-compliance with the provisions of the Insurance Act on the part of the insurer or do not meet the basic requirements of good business reputation or the insurance profession. If the ombudsman finds that there has been an infringement or non-compliance with, no appeal lies against its decision. In 2021, 45 such cases were referred to the insurance ombudsman.

She said that in 2021, 176 new cases were initiated by customers against insurance companies, in which the Association’s mediators mediated; 17 cases were withdrawn by the petitioners. The Association rejected two petitions, the agreement was cancelled in four cases, 41 agreements were reached, and 135 cases ended with no result, i.e. no settlement was reached. In terms of the nature of the cases, 34 cases related to motor third-party liability insurance, 26 to other liability insurance, 20 to accident insurance, 34 to property insurance, 40 to motor insurance, 13 to health and 5 to life insurance. Finally, she said that the work of mediators, including her own work, is to try to reach a settlement and, if that fails, to try to help the parties avoid that their case is taken to court. They need to be unbiased and impartial in the cases, and also understand if the parties are unable to reach an agreement. It is useful for them to find out and know the reason for failing to reach a compromise. The coronavirus pandemic slightly changed their previous practice, as many cases are now processed online. However, irrespective of the manner of mediation, they must always be neutral and empathetic, even in a regulated market environment such as the world of insurances.

The closing presentation of the conference was delivered by Dr Sziliné Tamara Turcsán, presenting a research and the results thereof entitled “Traditional and alternative options for international freight and cargo dispute resolution”. Tamara is a PhD student at the Deák Ferenc Faculty of Law and Political Sciences of the Széchenyi István University since 2020. Her research topic is the place of alternative dispute resolution in the legislative system. She graduated as an alternative dispute resolution and mediation lawyer in 2019 from the Deák Ferenc Faculty of Law and Political Sciences of Széchenyi István University.

She presented the results of a research project, where she examined how the disputes of economic actors emerge and develop in court practice. Within the framework of this, she analysed the outcome of the litigations, the enforcement of international rules and the extent to which economic operators in international freight and transport litigation are willing to settle disputes amicably. As regards the international carriage of goods and freight forwarding, she highlighted the CMR, i.e. the Convention Relative au Contrat du Transport International de Marchandise par Route, concluded in Geneva in 1956, also joined by Hungary, which promulgated by Law-Decree No 3 of 1971. The specific transportation sectors are regulated by additional international conventions. The CMR also regulates the shipping conditions and the liability of the parties involved. The Convention covers all contracts for the transportation of goods by road vehicle against a fee, if the place of loading and unloading – as specified in the shipping contract – are situated in the territory of two different states, at least one of which is a party to the convention. This provision applies regardless of the parties’ registered office or nationality.

International shipping and transportation lawsuits fall within the competence of the courts, regardless of the amount in dispute. Her research covered the practice of the Court of Justice of Székesfehérvár from 1 January 2001 to 31 December 2021. During this period, 104 cases were brought before the Székesfehérvár Court, 102 of which were concluded; 47 of those were concluded on the merits (40 judgments, 5 settlements and 2 court orders), while the number of other cases ended without a judgement on the merits was 55. When the dispute is taken to court, at the request of the parties the court commits the settlement to writing in the minutes and approves it. The settlement reached in the action has the same effect as a judgment and is enforceable by the state. A long-term, lucrative business relationship may also motivate economic operators to settle a dispute amicably. The personal relationships of the parties’ senior executives largely influence the business relationships. 23 of the 55 cases that ended without a judgement on the merits were terminated, which may have been the result of alternative dispute resolution. 10 of the 23 cases were settled out of court. The parties can be assisted in reaching a settlement by legal representatives, court mediators or mediators. Companies pursue a conscious business policy, as they apply the alternative dispute resolution clauses as early as at the time of concluding the contract and they only resort to court ruling in the cases where they fail to agree amicably. Only a small proportion of company disputes end up in court. A proposal was put forward with regard to the extension of alternative dispute resolution, as it would help to settle most disputes at an early stage – she concluded her presentation by summarising the results.

The lectures of the second day of the conference are available on the Magyar Nemzeti Bank’s YouTube channel