Top Legal
EXECUTIVES In Hungary 2021
The most influential legal executives in the Hungarian economy
Foreword It is with great pleasure that we present our inaugural Top Legal Executives in Hungary publication, a companion to Top Expat CEOs in Hungary (which will be produced for the third time this year). As such, it represents an expansion of our “Top” brand, and is an exciting departure for us. Before I go any further, and in the interests of full disclosure, perhaps I ought to “confess” that I am married to a lawyer who works for one of Budapest’s regional law firms. As a journalist, I have always thought it is good policy to have legal advice close to hand, though as a result I do perhaps know more about the local scene than is healthy for someone who is decidedly not an attorney at law. Recent events have brought legal matters, specifically rule of law issues, firmly into the spotlight, and in their way make the timing of this publication apposite. Whether it is the shocking storming of the Capitol building in Washington, D.C., or the historic second impeachment of U.S. President Donald J. Trump, or the military coup in Myanmar and the detention of Aung San Suu Kyi (again) after her party won a landslide election, it is impossible to untangle politics and law right now. Our own region has its own areas of concern in this arena, with the European Union trying to link cash dispersals from its budget and coronavirus recovery fund with adherence to the rule of law. This was seen as an attempt to target in particular the Fidesz-led government of Hungary and the Law and Justice (a suitably appropriate name for this publication) cabinet of Poland, the only
two countries in the history of the bloc to have been investigated by the European Commission under Article 7. That argument, which saw Hungary and Poland accusing Brussels of blackmail and threatening to veto the whole EU budget for the next seven years (it requires unanimity to pass), was resolved, at least for now, at an EU summit in December. But it is not the subject of this publication (although a couple of lawyers featured inside do reference it). It is both highly technical, and highly political, and the essence of the “Top” brand is very much more about the people behind the industry, rather than the practicalities of policy. Hence you will find in the second half of Top Legal Executives a series of biographies of some of the leading personalities from the sector. They share with us why they got into law in the first place and how they chose their specialty (or how their specialty chose them, in some cases). That said, we have tried to fame all of this within an overview of how Hungarian law operates, the role of the Constitutional Court and the Curia, or Supreme Court, the interconnection between the Hungarian and Budapest Bar Associations, and the career paths open to the country’s law graduates. We hope you will find this publication both informative and useful. Robin Marshall MBE, Editor-in-chief Budapest Business Journal
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TOP LEGAL EXECUTIVES
Top Legal
Contents Legal Profession Shows no Signs of Losing Appeal in Hungary
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Standing its Ground: The Evolution of Hungarian Law
12
Lawyering a ‘Sensitive Gauge of the Economy’
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EXECUTIVES
Budapest Bar: Building on Centuries of Advocacy
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In Hungary 2021
A Tales of Two Courts
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Market Talk: The Year That was, and the Year That Will Be
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Wolf Theiss as a Leading law Firm in the CEE/SEE Region
32
Péter Lakatos
58
Zoltán Nádasdy
60
Miklós Orbán
62
Erika Papp
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Pro Bono: The Very Essence of the Legal Profession
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Tamás Polauf
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TOP LEGAL EXECUTIVE BIOGRAPHIES
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András Posztl
68
Péter Berethalmi
40
István Réczicza
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David Dederick
42
Ulrike Rein
72
Zoltán Faludi
44
Sándor Sárközy
74
Kristóf Ferenczi
46
Iván Sefer
76
Péter Göndöcz
48
Tamás Szabó
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Zoltán Hegymegi-Barakonyi
50
Katalin Szamosi
80
Kinga Hetényi
52
András Szecskay
82
Andrea Jádi Németh
54
Ágnes Szent-Ivány
84
Pál Jalsovszky
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Law Firms With International Affiliations
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Published in 2021 • EDITOR-IN-CHIEF: Robin Marshall • CONTRIBUTORS: Annamária Bálint, Christian Keszthelyi, Csilla Lengyel, Bálint Szőnyi, Zsófia Végh • LISTS: BBJ Research (research@bbj.hu) • NEWS AND PRESS RELEASES: Should be submitted in English to news@bbj.hu • LAYOUT: Zsolt Pataki • PUBLISHER: Tamás Botka, Business Publishing Services Kft. • Address: Madách Trade Center, 1075 Budapest, Madách Imre út 13-14., Building A, 8th floor • Telephone +36 (1) 398-0344, Fax +36 (1) 398-0345, • ADVERTISING: AMS Services Kft. • CEO: Balázs Román • SALES: sales@bbj.hu • CIRCULATION AND SUBSCRIPTIONS: circulation@bbj.hu • www.budapestbusinessjournal.com • ISSN 2732-3307
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TOP LEGAL EXECUTIVES
Legal Profession Shows no Signs of Losing its Appeal in Hungary Although sometimes it might feel that there is a practicing lawyer on every corner, market trends hint that the demand for qualified legal professionals is justified. Legal studies open up the way for a number of career options, but also provide
Photo by Nicola Forenza / Shutterstock.com
a solid basis if you want to start down a totally different road.
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TOP LEGAL EXECUTIVES
Standing its Ground: The Evolution of Hungarian Law Hungarian law is constantly evolving, not least thanks to the driving impact of European legislation and case-law, after the dark era of communism that pursued a witch hunt against private property. Although based on Roman law, it has more
Image by xtock / Shutterstock.com
in common with English or common law than you might think.
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TOP LEGAL EXECUTIVES
Lawyering a ‘Sensitive Gauge of the Economy’ János Bánáti, president of the Hungarian Bar Association (MÜK) reflects on how the pandemic has affected the profession, the organization’s priorities for this year, whether legal education is up to scratch, and addresses the question of its independence. By Zsófia Végh BBJ: How hard has the legal profession been hit by the coronavirus? János Bánáti: At the beginning of the outbreak when all economic activities stalled, including real estate deals, and trials were suspended, we feared that it might bring the entire profession to its knees. A year into the pandemic, I am glad to say that it did not turn out that badly. Lawyering is a very sensitive gauge of the economy: it immediately reflects its changes. The Hungarian economy did not collapse, limitations such as the court "holiday" were eventually lifted, real estate deals returned, new companies are still founded. There is recession, but nowhere near as severe as we envisioned a year ago. On a positive note, the number of lawyers did not decrease. Some may have left the profession or decided to retire, but the growing trend we have seen for several years did not stop. The pandemic has increased the role and share of IT and digitization and, where possible, it accelerated the transition to digital tools. However, there are fields where an in-person appearance is essential; in criminal proceedings, for example. Although the court made some allowances to reduce the risk from the epidemic, some personal contact was necessary regardless. In fact, a criminal case or trial is an area where I am quite skeptical about the use of digital tools in the future as well, as a lot can be deduced from non-verbal cues, facial expressions, tone, etc. that is lost online. BBJ: What are the priorities for the Hungarian Bar Association for this year? JB: One priority is the economic situation of lawyers. Here MÜK has a delicate role in legislation: while it
is supposed to put lawyers’ interest to the forefront, it needs to do so in a way that it does not limit or harm the interests of society. One example would be mandatory representation, which could be expanded, but at the same time it cannot be made universal, as it would put too much of a burden on people. We seem to have found the balance where, in civil cases, the ratio of mandatory representation has increased without increasing the burdens on individuals. We also represent our members – just like any other chamber – when there are changes in taxation, such as KATA, or fees, etc. The coronavirus has also heavily impacted mandatory advanced training. A new concept introduced in 2018, this training was created to ensure that lawyers keep up with the fast pace of legislative changes. It was scheduled to start last January, and a significant part of it would have been in person. With the pandemic, it had to be moved online. Also, most community-building events, including Lawyer’s Day and Ball, had to be cancelled. Hopefully, we will be able to celebrate it again this year. BBJ: Is graduate education also up to date with the law of the 21st century? JB: Twelve years ago, in a college journal of ELTE University, I criticized higher education overall. I found it too theoretical and that it put a disproportionate emphasis on lexical knowledge while disregarding the practical aspects of the profession. Teaching focused on finding one solution to a problem, which is the judge’s job, not a lawyer’s. They, instead, should be trained to be able to identify a problem, to argue from more than one angle. As a lawyer involved in different aspects of training in
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TOP LEGAL EXECUTIVES
Budapest Bar: Building on Centuries of Advocacy The Budapest Bar Association describes itself as the oldest and most significant public body in Hungarian legal history, both considering its social significance and its membership numbers. While the primary task of the organization is to register and administer lawyers active in Budapest, its significance goes well beyond that. The Budapest Business Journal discussed the association’s history and duties with vice president, Dr. Péter S. Szabó.
By Christian Keszthelyi As the constitutional role of advocacy is crucial in any democratic society, lawyers fill an important role: Providing professional advice to private individuals or legal entities in litigation or contractual matters. Such advice includes public law matters, such as criminal cases or administrative issues, where clients may oppose the state. “Therefore it is highly important that the lawyer and also their organization should be independent,” Szabó tells the BBJ in an exclusive interview. He notes that, in today’s complex world, it is almost impossible to complete a business transaction, or even
The Budapest Bar Association has approximately 12,200 members. Off those, about 8,000 are lawyers, 2,000 are legal advisors, there are 1,700 trainee lawyers, 380 junior advisors, 70 legal assistants/paralegals and almost 90 foreign (EU and non-EU) lawyers. The number of active members is around 10,500. The membership fee for a lawyer (including EU lawyers) is HUF 33,000 quarterly, or HUF 132,000 for a whole year. Everybody else pays less than that.
a simple matter between individuals, without seeking the professional advice of a lawyer. “It is important to deliver the message to the wider public that it is always best to consult a lawyer before you initiate any kind of action with legal implications. Lawyers all over the world fulfil this task and their local organizations are supporting them in doing so,” the vice president says. The development and historical path of Hungarian law is inextricably linked to Hungarian society. Up until the 16th century, hardly any written sources of Hungarian law were available. Despite the lack of such records, it is certain that a separate organization providing justice to stakeholders had already emerged in the preceding centuries, sparked by the natural need for the subjects of legal proceedings to be assisted by advocates, specialists in the law. According to written evidence from the 17th and 18th centuries, lawyers mainly represented the fortunes of aristocratic families. In 1723, Károly (Charles III) issued the first law on lawyers, which was replaced by his daughter and heir, Maria Theresa in 1769, regulating the activities of some 800 lawyers operating in the country at that time. FIRST ORGANIZATION A century later, the Budapest Bar Association was the first formal organization of lawyers in Hungary in 1875, a muchneeded body as various rules for legal professionals who support the wider public in legal matters had existed in the
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TOP LEGAL EXECUTIVES
A Tale of two Courts
By Zsófia Végh
Hungary, in common with most states, has a judicial system where cases rise up through a pyramid, mostly starting in a district court and, if it gets that far, ending in an appeal to the Kúria (the Curia or Supreme Court) at the very top. The country also has a Constitutional Court, which ensures the country’s legislation is in keeping with the Fundamental Law, the formal name for the constitution. This article looks at how these two courts operate and, briefly, at areas of overlap.
The Curia Since 2011, numerous changes have transformed the structure of the Hungarian court system. Currently, there are 158 courts in a four-tier hierarchy: district courts, administrative and labor courts, regional courts, regional courts of appeal and the Curia, or Supreme Court, at the top of the pyramid. There are a total of 113 district courts. Appeals against decisions reached at these courts are heard by 20 appeal courts, which in certain cases act as the court of first
THE HISTORY OF THE CURIA As with so much else at Hungary’s rebirth as a free and democratic state, the Curia underwent major reforms from 1989 onwards, but its history long predates that point. The Curia at the time of the regime change was built upon an institution that was in place (albeit working under a very different constitution and legal system) from 1948, when the communists set up their single party state. But a line can be traced back beyond that, to Article 2 of Act LIX of 1881, which merged two departments (known as “royal tables”) into one body as from January 1, 1882: “With regard to the jurisdiction of both royal tables, the highest judicial authority is hereby vested in the Royal Hungarian Curia in Budapest.” Even that name was not new, though. Act LIV of 1868 declared that “the highest legal authority as regards the whole jurisdiction of the two royal courts of appeal
instance. The Curia is the highest judicial authority of Hungary. It guarantees the uniform application of law, as its decisions are binding for other courts. The responsibilities of the Supreme Court are varied, ranging from the examination of appeals submitted against the decisions of county courts and regional courts of appeal, to the review of final decisions if these are challenged through an extraordinary remedy. The Curia adopts so-called “uniformity decisions,” which are binding on all other courts. It hears and determines uniformity complaints, and analyses final
would rest with the highest court under the name ‘Royal Hungarian Curia’ located in Pest.” As the Curia’s fascinating (if somewhat clunky) English language history section (lb.hu/en/history-and-judicial-reform) makes clear, the antecedents go back even further yet. “Based on the development of law of earlier centuries, Act XXV regulated the position of the Royal Court of Appeal led by the Chief Judicial Representative, which had its first session on May 2, 1724. The Curia, made up of two forums, the Table of Seven and the Royal Table (or the Royal Court of Appeal), was turned into a permanent court working in Pest independently of the royal court, though it did not meet regularly until the reign of Joseph II,” it says. Continue back beyond that and the history becomes hazier as it grows older, but the website makes a brave effort at establishing a link with the country’s King-Saint founder, István (Stephen). “With his codes the king – as the prominent person of supreme jurisdiction – laid down the foundations of a thousand-year-old development of the legal system.”
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TOP LEGAL EXECUTIVES
Market Talk: The Year That was, and the Year That Will Be We asked a selection of Budapest’s top international lawyers to reflect a little on the year that has passed, and cast their minds forward
Photo by everything possible / Shutterstock.com
to what they expect to be the major legal developments in 2021.
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TOP LEGAL EXECUTIVES
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PRESENTED CONTENT
Wolf Theiss as a Leading law Firm in the CEE/SEE Region Founded in 1957, Wolf Theiss is one of the leading legal services providers in CEE, and was one of the first to pay attention to the business interests of the CEE and SEE regions. Thus the firm represents a region that has confirmed its ability to continue to generate growth. While M&A in Western Europe has seen a slow-down, in CEE/SEE it has been on the increase. Clients tell us that firms doing business in the region have legal needs in several jurisdictions. This distinguishes us; we are not just a top firm in one jurisdiction, but as a truly regional
firm, clients have access to a single knowhow pool and receive a consistent approach and quality. As a result, the firm now has 13 fully integrated offices in Albania, Austria, Bosnia and Herzegovina, Bulgaria, the Czech Republic, Hungary, Romania, Serbia, Slovakia, Slovenia and Ukraine, and more than 350 lawyers working for local and international
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Pro Bono: The Very Essence of the Legal Profession For more than a decade, the Financial Times has awarded annual prizes to the most innovative lawyers on three continents. The FT Innovative Leaders program covers legal innovation in more than 400 law firms. In 2019, the partner of a Hungarian law firm received the prestigious prize in the “Rule of Law and Access to Justice” category, for a pro bono project. We take a look at this field. By Kálmán Béres A quick search for pro bono activities in Hungary reveals that many lawyers and law firms actively participate in such projects. The Hungarian Bar Association (Magyar Ügyvédi Kamara, or MÜK, see page 18 for more on this organization) estimates that at least 10,000 individuals encounter problems accessing legal assistance, in most cases due to lack of financial resources. Such mass demand needs organized initiatives. On October 24, 2019, the Budapest Bar Association (Budapesti Ügyvédi Kamara or BÜK, see page 20) organized 117 lawyers for its first Pro Bono Day, offering free of charge legal assistance to clients who registered for the event. It was so successful that BÜK was awarded PILnet’s Pro Bono Lawyer Prize of 2019 for Hungary.
It is generally accepted that complicated legal issues incur heavy costs. Commercial companies might find ways to budget for these costs, for non-governmental organizations, heavily dependent on donations, they can be unbearable burdens. The PILnet Foundation in Hungary aims to ease this by bringing together NGOs with good causes and law firms with good intents. “The beginnings of PILnet in Hungary date back to 2005,” Tamás Barabás, senior legal officer in PILnet’s Budapest office told the Budapest Business Journal. At that time, many American and British law firms had established offices in Hungary. Pro Bono work has a very long tradition in the Anglo-Saxon legal world, but back in the mid-2000s there were only sporadic initiatives in Hungary.
“It is true that in a market economy, doing free work is against all rules of competition. However, there are two professions where people have been doing free work for centuries: doctors and lawyers.”
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Top Legal Executive Biographies
2021
Photo by Gilmanshin / Shutterstock.com
TOP LEGAL EXECUTIVES
Law Firms With International Affiliations A LISTING OF THE LEADING LAW FIRMS IN HUNGARY WHO ARE EITHER PART OF AN INTERNATIONAL GROUP OR A NETWORK OF FIRMS. THE DATA IS TAKEN FROM THE LATEST ISSUE OF THE ANNUAL BBJ BOOK OF LISTS. FIRMS ARE RANKED ACCORDING TO THE NUMBER OF ATTORNEYS THEY HAD WITH A LICENSE TO PRACTICE IN HUNGARY ON SEPTEMBER 15, 2020.
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State aid, data protection, project financing, restructuring and insolvency, consumer protection & advertising law
CERHA HEMPEL Rechtsanwälte GmbH Bécs 1921
7 1998
Attila Dezső, Tamás Polauf 1011 Budapest, Fő utca 14–18. (1) 457-8040 office@ cerhahempel.hu
Infrastructure and project finance, joint ventures and private equity, capital markets, financial restructuring and insolvency, data protection
Dentons Europe LLP London 2013
180+ 2015(1)
István Réczicza 1061 Budapest, Andrássy út 11. (1) 488-5200 budapest@ dentons.com
cms.law
2 DLA Piper Hungary www.dlapiper.com
Oppenheim 3 Ügyvédi Iroda
50
41
–
OTHER
Péter Lakatos 1075 Budapest, Madách Imre út 14. (1) 429-1300 mail@ lakatoskoves.hu
LIFE SCIENCES
A 1991
PUBLIC PROCUREMENT
Clifford Chance LLP, Multilaw, Interlaw, Association of European Lawyers, Global Leaders Forum – –
INTELLECTUAL PROPERTY
Restructuring & insolvency, data protection & GDPR, aviation, investment protection, regulatory, compliance and investigations, consumer protection
DISPUTE RESOLUTION
29 1989
Ulrike Rein 1053 Budapest, Károlyi utca 12. (1) 486-2200 office@ oppenheimlegal.com
CORPORATE / M&A
–
Freshfields Bruckhaus Deringer London 1743
ENVIRONMENT PROTECTION
András Posztl 1124 Budapest, Csörsz utca 49–51. (1) 510-1100 hungary@ dlapiper.com
TMC
90+ 1988
EMPLOYMENT
DLA Piper UK LLP London 2006
EU
Capital markets, data protection and privacy, film and media law, fintech, project finance, restructuring and insolvency
COMPETITION
Erika Papp 1053 Budapest, Károlyi utca 12. (1) 483-4800 budapest@ cms-cmno.com
ENERGY
77 1989
BANKING AND FINANCE
CMS Cameron McKenna Nabarro Olswang LLP London 1779
TAX
Data protection & cybersecurity, compliance & investigations, restructuring and insolvency, tech industries, state aid
REAL ESTATE
NO. OF OFFICES WORLDWIDE YEAR HUNGARIAN OFFICE ESTABLISHED
CMS Cameron McKenna 1 Nabarro Olswang LLP Magyarországi Fióktelepe
NAME OF ASSOCIATE NON-HUNGARIAN LAW FIRM OR COOPERATION NETWORK WORLD HQ YEAR ESTABLISHED
COMMERCIAL
COMPANY WEBSITE
NO. OF ATTORNEYS WITH LICENSE TO PRACTICE IN HUNGARY ON SEPTEMBER 15, 2020
RANK
LEGAL SPECIALITY AREAS
www.oppenheimlegal.com
Lakatos, Köves és Társai 4 Ügyvédi Iroda
37
www.lakatoskoves.hu
CERHA HEMPEL Dezső 5 és Társai Ügyvédi Iroda
www.cerhahempel.com/hu/offices/ magyarorszag
6
Dentons
www.dentons.com
36
34
–
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TOP LOCAL EXECUTIVE ADRESS PHONE EMAIL
