Territorial jurisdiction

Legal meaning

In examining territorial jurisdiction, it is first determined whether a special or exclusive jurisdiction rule exists. Where exclusive jurisdiction exists, the court examines jurisdiction of its own motion. Where jurisdiction is not exclusive, however, the jurisdictional objection must be raised in the statement of defense, and the court with jurisdiction — and, if more than one court has jurisdiction, the selected court — must be indicated. Otherwise the objection is not taken into account (Articles 19, 116 and 117 of the Code of Civil Procedure, HMK).

A jurisdiction agreement produces effects only with respect to the persons and relationships that the law permits. Merchants or public legal entities may enter into a jurisdiction agreement, in accordance with the conditions in the law, for a dispute that has arisen or may arise between them; protective provisions in consumer and employment relationships are also taken into account separately.

For a jurisdiction agreement, both parties must be among the persons covered by HMK Article 17; the agreement must be in writing, the legal relationship from which the dispute arises must be specific or determinable, and the court or courts given jurisdiction must be indicated. A jurisdiction agreement cannot be made on matters the parties cannot freely dispose of or in cases of exclusive jurisdiction (HMK Article 18).

Key elements and practical criteria

• A distinction is made between general, special and exclusive jurisdiction.
• Exclusive jurisdiction is a procedural prerequisite.
• A jurisdictional objection to non-exclusive jurisdiction must be raised in time.
• The validity of a jurisdiction agreement depends on the status of the parties and the statutory conditions.

Practical importance

Filing an action in the wrong place may lead to the file being sent to another court and to loss of time. Special jurisdiction provisions should be checked particularly in disputes concerning immovable property, inheritance, insurance and consumers.

Commonly confused concepts

• Subject-matter jurisdiction determines the type of court; territorial jurisdiction determines the court by location.
• While exclusive jurisdiction is examined by the court of its own motion, non-exclusive jurisdiction, as a rule, comes up only upon the first objection.

Practical example

For an action concerning real rights in an immovable, the exclusive jurisdiction rule in favor of the court of the place where the immovable is located cannot be set aside by the parties’ agreeing on another place.

Frequently asked questions

Can a jurisdictional objection be raised at any stage?

In cases other than exclusive jurisdiction, the jurisdictional objection must be raised within the response period and in the proper form.

Is every jurisdiction clause in a contract valid?

No. The status of the parties, whether the dispute is specific or determinable, the writing requirement and mandatory protective provisions are examined separately.