Hungary spends heavily on litigation, though settlements are often possible

Hungary incurs substantial costs related to legal disputes, yet a considerable number of cases could potentially be resolved through amicable settlements outside of court. Recent data indicates that approximately 18,000 disputes were settled without formal litigation, highlighting the potential for alternative dispute resolution.

Ádám Tóth, president of the Hungarian National Chamber of Notaries, explained that notary public agreements are particularly suitable when parties share a common basis for negotiation and prioritize a legal, financial, or practical closure over a judicial decision. Ideally, such agreements can be finalized and legally binding within a single day.

These settlement options are applicable across a wide range of conflicts. They can address issues arising from construction projects, such as disputes between contractors and clients over payments, quality, or deadlines. Property disputes among co-owners and claims for damages are also suitable for this process. Furthermore, these agreements can be used to settle debts, resolve inheritance-related financial claims, and manage property division in cases of divorce or cohabitation.

The value of reaching a settlement is especially pronounced when protracted court battles would be both costly and uncertain for all involved parties. When a mutually acceptable compromise can be found, it offers a more efficient and predictable path to resolution. While notaries facilitate the formalization of these agreements, they do not act as mediators. Their role involves ensuring the agreement clearly defines the settled issues and obligations, including the method and deadline for fulfillment, to ensure enforceability.