Hungary
Answer ... Yes, they are permitted.
There are no explicit limitations on contingency fees. However, the terms of such agreements must be found to be valid under the general contractual rules of the Civil Code. The market standard is around 10% to 20%.
Success fees are also permitted; however, success fees exceeding two-thirds of the legal fees incurred are not enforceable before the courts.
Success fee agreements are usually proposed if:
- the case is complex but, considering the claimed amount, the legal fees would be disproportionate; or
- the claimed amount is extremely high. In this case, firms typically offer discounted rates for the possible future profits.
Success fee agreements pose higher risks for law firms as the client may terminate the mandate once the outcome of the case becomes more predictable and engage another firm. It is difficult to handle this risk under the terms of the Civil Code.
Hungary
Answer ... In general, no limitation applies; however, success fees exceeding two-thirds of the legal fees incurred are not enforceable before the courts.
Hungary
Answer ... No limitation applies specifically on such terms. Otherwise, see question 3.1.
Hungary
Answer ... Success fees are the most commonly used risk-sharing tool by law firms; other options are not widely utilised.
Hungary
Answer ... There has not been sufficient practice to draw any conclusions.
Hungary
Answer ... There are no comprehensive reports on the subject.