Compensation Lawsuit
Professional Legal Representation in Compensation Lawsuits
Our firm has provided legal representation in numerous compensation lawsuits across a wide range of matters; therefore, you can turn to us with confidence, regardless of the event or circumstance that caused you harm.
It is crucial to appoint a lawyer experienced in compensation lawsuits: on one hand, failing to cite or misidentifying the correct rule among the many regulations governing damages can have serious consequences and may even lead to losing the case. On the other hand, the precise, quantified specification of compensation claims tailored to your specific loss is essential, as the court will not accept claims that are not presented and supported in detail, which may result in you forfeiting them.
When is a compensation lawsuit necessary?
"It is advisable to first attempt an out-of-court settlement. Accurate assessment of damages and up-to-date knowledge of the practice are also important in the out-of-court phase; however, if the case cannot be settled out of court, a compensation lawsuit remains the only solution. Before initiating a lawsuit, we inform you about the risks, the expected duration, the course and practice of the litigation process, and the potential outcomes, so that you can make an appropriate and well-founded decision in light of these factors."
Dr. Szentkláray Bence LL.M.
Master of Tort Laws
Attorney-at-Law
Types of the Most Common Compensation Lawsuits
The most common compensation lawsuits are those arising from traffic accidents and workplace accidents. In both cases, personal injury is typically a defining factor; however, different compensation rules apply to them.
In the case of a traffic accident, in almost all instances, the compensation lawsuit must be initiated against the compulsory liability insurer of the driver at fault based on the rules of the Civil Code, whereas in the case of a workplace accident, a labor compensation lawsuit must be initiated against the employer according to labor law regulations. Despite these differing rules, one fact can be stated: it is very difficult for the liable party to be exempted from liability in such cases.
Pecuniary Damages
Compensation serves to reimburse pecuniary damages—that is, damages that can be determined in monetary terms. Damage is therefore a decrease in assets, which must always be proven as a precise amount. The fundamental principle of compensation law is that the injured party must be placed in the same position as if the damage event had never occurred.
There are three typical types of damage: actual damage (e.g., material damage to a car during an accident), lost profit (e.g., being unable to work due to injury, thereby losing income), and justified expenses (e.g., the value of care provided by a relative during recovery from injuries sustained in an accident). An important rule in compensation lawsuits is that the damages must be proven by the injured party.
For the compensation of "non-pecuniary damages" (e.g., mental suffering due to the loss of a relative), another instrument, the grievance fee, is used. This can typically be enforced together with compensation in a compensation lawsuit; however, it is not compensation, and therefore different rules apply to it than to compensation.
Costs of a Compensation Lawsuit: What to Expect?
The costs of lawsuits are referred to as litigation costs. This includes all costs that arise in connection with or prior to the lawsuit. Such costs most commonly include attorney's fees, court fees (the fee for the court's work), and, if a forensic expert is required in the lawsuit, their fee.
It is important that, as a general rule, litigation costs are borne by the parties in proportion to the extent to which they lose or win the case; thus, in the event of a successful lawsuit, the court will order the other (losing) party to pay the entirety or the greater part of the costs.
As a general rule, the court fee must be paid upon the initiation of the lawsuit; however, several exemptions may apply. Typically, in compensation lawsuits, there is no need to pay court fees in advance, meaning the lawsuit can be initiated free of upfront fees, and the court decides on their subsequent payment in the final judgment.
Why choose us in the event of a compensation lawsuit?
- The attorneys at our firm are specialists in compensation law; therefore, following specialized master’s training, they possess specific expertise in compensation cases.
- Based on our decades of practice in compensation lawsuits, we have encountered numerous circumstances that helped us develop goal-oriented methods to proceed more smoothly, allowing you to receive the highest possible amount of compensation sooner.
- We follow court practice on a daily basis, as court practice is the definitive compass of compensation law and lawsuits; it is essential to know the courts' position regarding questions arising in any given compensation case.
- Throughout the compensation proceedings, we always work to achieve the highest possible amount of compensation.
Frequently Asked Questions
Can compensation be obtained out of court?
Yes, and it is very common in traffic accidents, for example. In traffic accidents, we act against the insurance company, whose primary goal is an out-of-court settlement. If an agreement cannot be reached (or not on everything), then a lawsuit remains the solution. In proceedings against an insurer, it is typical for them to pay a reduced amount of compensation while not recognizing the remainder, allowing for a lawsuit for the balance. In the case of workplace or other accidents, an out-of-court settlement is also an option and applied in many cases, though it is less frequent.
Why are medical experts common in compensation lawsuits?
Only a medical expert can determine, for example, what medical aids or medications an injured person required, or establish the health consequences of the injury (e.g., permanent disability), as the court does not possess expertise in medical matters. In such cases, the court considers the medical expert's opinion as evidence.
Why is it important to specify the correct compensation rule in compensation lawsuits?
The Civil Code and other legislation regulate compensation in different ways, depending on exactly what damage event occurred. We call these various rules "liability forms." For example, different rules apply if someone causes damage in a traffic accident, and other rules apply if someone’s dog causes damage to another. In compensation lawsuits, precise specification is important because the burden of identifying the legal basis—the exact liability form—lies with the injured party. If someone, for instance, mistakenly sues under a form applicable to a workplace accident when the event does not qualify as such, the court may dismiss the claim for this reason.
How much compensation am I entitled to?
This is perhaps the most frequent question we are asked. Unfortunately, a proper answer can only be given after we have precisely assessed the damages and estimated the expected compensation amounts. However, we can only estimate the compensation once we have all the documents in hand and know all the facts and circumstances. Compensation amounts are influenced by many factors, such as how long the injured party was bedridden, whether a permanent disability developed, etc. Regarding the grievance fee, a precise amount cannot be stated beforehand, as it is an amount shaped by court practice; therefore, we can only refer to the grievance fee awarded by the court in similar cases.
What is the amount of the court fee?
The court fee is a certain percentage of the compensation amounts asserted in the lawsuit. Previously, this was a fixed 6%, but the new rules have changed this, and a tiered system was introduced. The fee can therefore be calculated once the exact compensation amounts are known.
Do I always have to pay a court fee?
As a general rule, the fee must be paid when initiating the lawsuit; however, many exemptions are available depending on the nature of the case. In compensation lawsuits, the injured party typically enjoys the right of "fee recording," meaning that no fee has to be paid in advance, and the court will decide on its payment in the judgment. Thus, if the injured party wins, the other party pays the fee. In some workplace accident cases, the employee may be entitled to a full exemption from costs, meaning they do not have to pay any costs in advance, and if they lose, they only have to pay the other party's attorney's fees.
Will my full litigation costs be reimbursed if I win?
The fundamental principle is that the losing party pays. However, this is a proportional system, so winning and losing must be measured in ratios. For example, if I sue for 1,000,000 HUF but win only 800,000 HUF, I have won 80% and lost 20%; thus, the other party pays 80% of my costs, while I pay 20% of theirs. This is why it is important to specify compensation amounts accurately, as stating an excessively high amount can backfire.
Can I also claim the payment of attorney's fees from the liable party?
Yes, attorney's fees count as litigation costs in a lawsuit, so if you win, the other party will reimburse your attorney's fees as well. Attorney's fees paid during out-of-court negotiations can also be enforced.
Which court will hear the case?
As a general rule, the court at the defendant's place of residence (or registered office) has jurisdiction; however, in compensation lawsuits, it often happens that the court at the injured party's place of residence will preside, but this depends on the specific case.
How long is a compensation lawsuit?
A final judgment is usually reached in about 1.5 to 2.5 years. Some cases are shorter due to their simplicity, and some courts have fewer cases and thus move faster. It is also common to reach a court settlement with the liable party after the lawsuit has been initiated. Unfortunately, it also happens that the first-instance proceedings last longer than 2 years.
Contact us!
- 1054 Budapest, Bajcsy-Zsilinszky út 36-38
- Branch Office: 1126 Budapest, Brassai Sámuel utca 4.
- office@drszentklaray.hu
- +36-1-783-3578