The Helikon Terrace on the shores of Lake Balaton is progressing well, Kapolyi Law Firm is the legal advisor of the investor

One of Keszthely’s new high quality residential projects, Helikon Terasz, has reached the construction stage and held a ceremony with the participation of the contracted buyers in mid-May. Work is progressing according to plan, the first phase of the project is expected to be handed over in the first quarter of 2023. As legal advisors of the investor Blue Corso Zrt., we are proud that Kapolyi Law Firm, with the support of our real estate and construction law team, can be part of the 21st century smart home project envisioned for the Balaton shore!

 

Legal 500 ranked Kapolyi Law Firm among the best in four practice areas

Legal 500, the international professional publication, selected Kapolyi Law Firm in its independent ranks as one of the best domestic law firms in four legal fields at the same time. The legal service provider with more than 20 years of professional background has retained its leading position in capital markets and banking and finance law and further strengthened its position in the field of real estate and legal enforcement law, its staff members have achieved outstanding positions individually, too.

In this year’s ranking Legal 500 evaluated the service of Kapolyi Law Firm with a very high ranking in several areas. As it has been for years, this year Kapolyi Law Firm was ranked in the highest Tier 1 category in the field of banking, finance and capital markets law, thus recognizing its market-leading position among domestic economic law service providers. With more than twenty years of experience and an ever-expanding system of domestic and international contacts, Kapolyi Law Firm has further strengthened its position in the field of real estate and construction legal services too, in recognition of which the prestigious publication awarded again a Tier 2 ranking this year. Based on professional evaluations, the Law Firm is now ranked among the bests in the category of Tier 3 also for its corporate law / M&A and dispute resolution legal services.

In this year’s Legal 500 individual ranking two members of the Law Firm’s team were again highlighted among the leading legal professionals. Dr. Sándor Habóczky, head of Kapolyi Law Firm’s real estate and construction law practice group, who provides legal advice to domestic and foreign investors, developers and real estate funds, is again ranked among the best in the “Leading Individual” category. Dr. Viktor Krezinger, who has headed the Firm’s capital markets practice group for many years and provides legal advice to listed issuers, investment fund managers and investment service providers, also received a prestigious award. His professional work has been ranked among the bests in the “Next Generation” category for the second year running.

Commenting on the awards, Dr. József Kapolyi, head of Kapolyi Law Firm, said that they are particularly proud of the successes achieved in new practice areas and are pleased that the success of the Firm’s practical, accurate and prompt service style has been recognised by the prestigious international professional publication, based primarily on positive and appreciative feedback received from clients.

MOL has acquired Hungary’s leading plastics recycling company, with Kapolyi Law Firm acting as the seller’s legal representative

Kapolyi Law Firm, as legal representative of ReMat Hulladékhasznosító Zrt., was also involved in MOL’s recent transaction whereby the international oil and gas company acquired Hungary’s leading plastics recycling company. Dr. József Kapolyi, head of our office, dr. Gábor Horváth, head of our corporate team and dr. Zoltán Bánki, member of our corporate team participated in the preparation of the share sale agreement and the contract negotiations on behalf of our law firm.

You can read more about the transaction here: https://www.portfolio.hu/uzlet/20220401/a-mol-felvasarolta-magyarorszag-piacvezeto-muanyag-ujrahasznosito-vallalatat-537021

Kapolyi Law Firm has been ranked high in the category of real estate law as well as capital market law according to the rating of Chambers and Partners

Kapolyi Law Firm has been ranked also this year among the top 15 law firms in Hungary in the real estate and capital market law category by the independent international legal rating agency, Chambers and Partners. dr. József Kapolyi, founder and head of Kapolyi Law Firm, and dr. Viktor Krezinger, head of the capital market law practice group finished among the top ten Hungarian legal experts in the field of capital market law. In the real estate category dr. Sándor Habóczky, head of the real estate and construction law practice group, was also ranked among the top ten by the international rating agency.

In addition to the high ranking, we are especially pleased with the many positive feedback we receive from our clients, which continue to encourage us to provide the most comprehensive, complex and innovative legal services available to our partners.

New shares of AutoWallis have been listed on the stock exchange: Kapolyi Law Firm acted as legal advisor to the entire issue

On 24 November, shares from the public transaction of the AutoWallis Group were listed on the Budapest Stock Exchange in the BSE Premium category at a ceremony with the ringing of the Budapest Stock Exchange bell. We are very pleased that Kapolyi Law Firm was able to act as legal advisor in the preparation of the HUF 10 billion share issue and the listing of the new shares on the stock exchange, which is unique in the Hungarian securities market as shown by the double oversubscription. Our law firm has been supporting AutoWallis as legal advisors for years, in our cooperation, this issue is also an outstanding one in terms of capital market history.

Further details on the listing of AutoWallis Plc’s new shares can be found here.

Share issue of AutoWallis Nyrt., assisted by Kapolyi Law Firm as legal advisor, closed with double oversubscription

The public issue of shares listed in the Premium category of the Budapest Stock Exchange by AutoWallis Nyrt. closed on 9 November with a huge interest, far exceeding preliminary expectations, with Kapolyi Law Firm acting as legal advisor in the preparation and execution of the issue. The huge success is also demonstrated by the fact that the retail subscription and the institutional auction received subscription requests up to 17 billion HUF, compared to the previous plan of 6-8 billion HUF. The issue is of particular significance for the Hungarian capital market as a whole, as there has not been a retail share subscription of this size on the Budapest Stock Exchange for more than 10 years.

Kapolyi Law Firm is proud to be part of such a success story as the legal advisor to the issuer and to provide further legal support to AutoWallis Group in its growth strategy to become the leading car and mobility provider in the Central and Eastern European region.

Click here for more information about the share issue of AutoWallis Nyrt., which ended with more than double oversubscription.

 

Kapolyi Law Firm prepared the legal background of the public share issue of AutoWallis Nyrt.

Kapolyi Law Firm prepared the legal background of the public share issue of AutoWallis Nyrt.

Kapolyi Law Firm, a leading law firm in capital markets, acted as legal advisor in one of the most exciting stock market success stories of recent years. AutoWallis Nyrt., a company listed in the Premium category of the Budapest Stock Exchange, plans to raise funds in the range of HUF 6-8 billion. Kapolyi Law Firm will act as a legal expert for the company’s retail share sale from 25 October to 9 November and the institutional share sale from 2 to 9 November. The car company, listed on the Hungarian stock exchange, presented the terms and conditions of the fundraising and its strategic objectives at a press conference on 14 October. Our law firm participated in the event as a partner.

For more details about the share issue and the growth strategy of AutoWallis Nyrt. click here.

 

Two experts from Kapolyi Law Firm gave a presentation in connection with the Growth Bond Programme of the National Bank of Hungary at the ELITE workshop of Budapest Stock Exchange

Two experts from Kapolyi Law Firm gave a presentation in connection with the Growth Bond Programme of the National Bank of Hungary at the ELITE workshop of Budapest Stock Exchange

On 6 October, the Budapest Stock Exchange organised ELITE workshop, an international corporate development training with the participation of nearly twenty companies, the main topic thereof was financing. The event featured presentations by representatives of renowned companies and institutions such as Deloitte, Hiventures, the National Bank of Hungary, Széchenyi Funds and Budapest Bank. Kapolyi Law Firm was represented by dr. Viktor Krezinger, partner and head as well as dr. Ádám Imre Menyhárt, member of the capital markets practice group. They gave a presentation on the legal requirements and conditions for bond issue inside and outside of the Growth Bond Programme of the National Bank of Hungary.

Kapolyi Law Firm participated as legal advisor in the successful green bond issuance of Wing Real Estate Development and Investment Ltd.

Wing has issued green bonds worth around HUF 25.3 billion under the Hungarian National Bank’s Funding for Growth Scheme (FGS). One of Hungary’s largest real estate developers and investors committed to environmentally friendly solutions, will use the funds raised from the 10-year bonds, with a fixed annual interest rate of 3 percent, exclusively for environmentally friendly developments. Kapolyi Law Firm provided full legal support for the successful bond issuance carried out on 20 September 2021, including the preparation of the Information Memorandum, the smooth execution of the issuance process and the registration of the green bonds on the BSE Xbond market.

Further details on the Wing Green Bond issuance can be found here.

Financial compensation for long-continued civil procedures

author: dr. József ANTAL

The excessive length of civil procedures is not a Hungarian nor a new problem.  This issue arises from several causes, so the solution shall involve more elements as well.  One way of accelerating the process is the modernization of the procedural code, which the new Code of Civil Procedure has attempted to achieve – although the result is not yet completely clear.  A further way is to sanction if a court is simply slow despite the rules that allow the reasonable duration of a litigation matter.  This is the purpose of Act XCIV of 2021 adopted at the end of June on the enforcement of financial compensation in connection with long-lasting civil litigation procedures (hereinafter referred to as „ Pevtv”).

The excessive length of civil lawsuits obviously arises as a problem because, in a specific case, it may cause a harm to the interests of a party, who would therefore seek legal remedy and / or request a financial compensation.  Such cases have existed so far, for example in the practice of the European Court of Human Rights (ECHR).  However, this is not a system-wide solution for the problem.

By sanctioning the slowness of a civil lawsuit, the Pevtv can force the judicial organization to work even more efficiently.  The Pevtv can also give the party affected by a still long-continued civil litigation an opportunity for a compensation that can be enforced in a relatively simple manner.

My aim here is not to present the details of the Pevtv and the various methods of calculation and possible interpretation problems, but to describe the essential provisions of this new Act.

The point of the Pevtv is that a party is entitled to financial compensation if the total length of a civil lawsuit, or the length of a specific stage of the process, exceeds the duration determined by the legislator as the maximum limit of the reasonable duration of the lawsuit or that of the relevant stage of the process.

The scope of the Pevtv extends exclusively to civil litigation matters (including payment order procedures turning into litigation).  The Pevtv excludes criminal procedures.

The court procedure lasts until the day of the communication of the final and binding decision closing the procedure – including here the judgement rendered in extraordinary judicial review procedures.  (This means that, if such review procedure is decided on the merits by a judgment, the duration of the extraordinary review phase shall also be taken into account when calculating the duration of the litigation.)

The total length of the procedure also includes the duration of any repeated procedure as well as that of an allowed retrial procedure.  It can be expected mostly in the case of repeated procedures and retrials that the – otherwise sufficiently generously set – maximum acceptable time would be exceeded.

The Pevtv specifies the reasonable duration of a civil lawsuit, beyond which “the cash register may ring”.  The main rule for the entire duration of a civil lawsuit is sixty months (five years), and for each stage of the procedure it is the following: first instance – thirty months; first instance beginning with an order for payment – thirty-six months; second instance – eighteen months; and extraordinary judicial review – twelve months.

The maximum limit of the entire reasonable duration is shorter – thirty-six months (3 years) – in lawsuits regarding personal status, in lawsuits for the maintenance of a minor child, in press rectification lawsuits and, in labour lawsuits; furthermore, the maximum boundary of the reasonable duration for each stage of such procedures is shorter, as well. However, this list could be supplemented by other cases to be dealt with quickly.  Additionally, thirty-six months still seems too much in cases that do require a quick adjudication.

The court adjudging the claim for financial compensation may deviate in both directions from the above limits based on a well-reasoned decision (subject to certain limitations).  This may be necessary for the appropriate individualisation of the cases.

We already know when the financial compensation may be due; yet we do not know how much that is exactly.  The answer to this basic question is given by a government decree also adopted at the end of June (372/2021): “at the start”, the daily amount of financial compensation will be fixed at four hundred forints per day. Therefore, after a full year of delay, a maximum of HUF 146,000 can be paid.

An extremely important question is how well this government decree has “shot” the appropriate level of the financial compensation. If it is too low, there will be no real compensation nor will it push the courts towards greater efficiency.  If it is too high, it can lead to an undue burdening of the judicial budget and even to malignant, profitable cases. In my opinion, the daily HUF 400 compensation is too low, to say at least, so the new legal institution will not have any significant effect at all. As in the case of legal assistance (which many would need), there is a good chance that the lawyer’s fee will take away the full financial compensation granted, even when somebody has a very fair fee agreement. Because no one should expect at this moment that the courts are about to start awarding realistic lawyers’ fees to the winner, especially in non-litigious procedures – which has not really been seen before so far, not even in cases between private parties (and in this case we are talking about cases against national courts and ultimately the state budget).

Of course, the success of the Pevtv would – in theory – depend on other factors.  For example, it is a question whether a judge who is recurrently slow should expect consequences.  In case the answer is no, and particularly if the amount of the compensation is also set too low in the government decree, the whole new compensation system will not make much sense in practice.

In fact, despite the noble intention of the legislator, it is possible that the Pevtv will introduce or institutionalize a semi-new legal institution that will have little or no practical effect relevant to the legislature’s real aim; while courts will attempt to avoid potential delays to the detriment of the parties and their legal representatives.

The essence of the Pevtv can be seen from the above, I would like to highlight some further important details.

It will still be possible to go to the ECHR with a claim based on the excessive slowness of a civil lawsuit, but the Pevtv seeks to manage that it will not be possible to make money in both ways (in Hungary based on the new act and before the ECHR) for the same excess.

The claim for financial compensation will be enforceable against the court of first instance (in case of a district court, against the competent tribunal), so not directly against the state.

According to the Pevtv the enforcement will take place in non-litigious civil proceedings solely on the basis of documents, even in connection with ongoing litigation procedures, and in rapid proceedings with very strict deadlines (in some cases a few months, up to half a year).

According to the Pevtv, it will be ensured that the court(s) affected by the delay will not take part in the compensation procedure, so there will be no need for a separate (time-consuming) exclusion procedure.

In non-litigious proceedings, the duties will only have to be paid by the applicant in arrears if the application fails.

The new Act and the related government decree, will enter into force on 1 January 2022 and shall be applied to the ongoing cases as well.

Otherwise, in addition to, or instead of, the compensation under the Pevtv, there will still be no obstacle of making a pecuniary claim on other possible grounds (grievance fee, damages caused by a court) if their relevant statutory preconditions are met in the given case.

The success of Pevtv – namely, whether if it is be able to speed up civil litigation procedures and compensate those harmed by delays – is very doubtful from the outset, with the daily amount of the compensation being too low. But success will also depend to a large extent on the attitude of the civil courts that decide on the compensation. What will be considered as the protection of the “honour of the uniform”: granting the financial compensation, whenever possible, or the denial of the slowness, and therefore the refusal of the compensation as well, whenever possible? It will be revealed soon.