Kun & Partner - Trust arbitration in Hungary
In late 2020, the Hungarian parliament added a pithy fourth paragraph to s.1 of Act LX of 2017 on Arbitration (the Act): “(a)n arbitration clause may be stipulated in respect of any legal relationship associated with trust agreements”. Despite its brevity, the new rule represents a significant change as from 1 January 2021: the competence of an arbitral tribunal can be validly stipulated in relation to disputed arising from almost any internal or external legal relationship associated with trusts in Hungary. The aim of this article is to explain the significance of the new provision.
