The airlines' liability is governed by the Montreal Convention, according to which in case of flight delays, only passengers are entitled to be reimbursed for their losses. However, the problem often arises from the fact that it is not the passenger who suffers the additional expenses.

The Air Baltic case

In 2011, two employees of the Lithuanian national investigator service travelled from Riga to Baku. The Air Baltic flight arrived in Azerbaijan 14 hours later than expected.

Due to the delay, the investigator service was required to pay a daily fee and additional social benefits to its employees. The Air Baltic Airline refused to pay the reimbursement of the costs on the grounds that under the Montreal Convention only passengers (i.e. employees) are required to be paid compensation.

Since the detective service is not a passenger, it is thus not entitled to be compensated.

At the end of the three-year procedure of this past February, the Court of Justice of the European Union came to a decision. According to the decision, the employer who suffers the actual loss is entitled to be reimbursed.

As the European Court of Justice's decision is compulsory in all EU member states, similar decisions are expected to be made in Hungary and in other countries of the European Union.

Chambers Europe 2016 recommends VJT & Partners for its Corporate/M&A advice in Band 4 with János Tamás Varga ranked in Band 3 for individual lawyers. The commentary notes that the team is known for its “growing presence in the Hungarian commercial market” and for being “experienced in multi-jurisdictional mandates, frequently acting alongside major international firms on the Hungarian aspects of cross-border issues.” A client is quoted as saying that the team is “proactive in seeking the best solution for the client. A well-prepared team, which provides a high level of legal service." In addition, János Tamás Varga is singled out for his “extremely commercial" advice.

Within the Employment section, the team is ranked in Band 2. It is described as a “well-regarded local outfit with contentious and advisory employment” representing “numerous high-end corporate clients” with one client describing the team as “responsive, flexible in their thinking and very creative." Furthermore, Zoltán Csernus (ranked in Band 3) is noted as "very approachable and responsive, with broad expertise," and János Tamás Varga (also ranked in Band 3) "a fast understanding of cases and is a hands-on lawyer."

For Private Equity, the team is ranked in Band 3, with János Tamás Varga recommended in Band 2. The practice is recommended for its “expertise in exit and investment transactions, and assists clients with spin-offs and recapitalisation mandates. Experienced in cross-border matters, regularly working alongside foreign firms as part of a 'best friends' network.” The broad range of industries across which the practice works is also highlighted.

The firm’s TMT capabilities are ranked in Band 2. The practice is singled out for its “growing strength in the Hungarian technology sector, frequently advising on data protection and advertising issues, alongside high-end transactional advice. Also well versed in IT outsourcing mandates.” One client describes the team as “very careful to design terms and conditions to protect its client's interests and, at the same time, not to create unacceptable conditions.” In the TMT section, Band 2-ranked János Tamás Varga “remains a highly regarded market player” and very “experienced in financing and regulatory matters”, according to clients.

VJT & Partners Managing Partner János Tamás Varga comments: “These results are encouraging as they position the firm as a genuine alternative to the major international players’ Hungarian offerings in each of our core practices. Of course there is always more for us to do, and we continue to work closely with our clients to offer them exactly what they need.”

All of VJT & Partners’ partners are recommended in The Legal 500 Europe, Middle East & Africa editorial. In relation to the firm the guide makes the following comments:

Commercial, corporate and M&A: "VJT & Partners wins plaudits for its ‘excellent quality, focus and outstanding understanding of clients’ needs’. János Tamás Varga, who is ‘business-minded and has the ability to see the big picture’, and the ‘precise and knowledgeable’ Zoltán Csernus advised on the Hungarian aspects of TransDigm Group’s acquisition of EME. The group expanded in August 2015 with the arrival of ‘very good’ transactional lawyer András Lovretity, who was previously a freelance legal counsel."

Dispute Resolution: "VJT & Partners’ strengths lie in employment and insurance litigation. Zoltán Csernus’ ‘responsive’ team acts for clients including NN Insurance and Invescom."

TMT: "The team at VJT & Partners is ‘on top of recent developments’ and is led by managing partner János Tamás Varga, who has been active in this space since the late 1990s. The ‘highly competent’ Gábor Hacsi and ‘very responsive’ associate Endre Várady are advising NN Insurance on the Hungarian aspects of establishing cloud computing services."

Real estate and construction: "VJT & Partners, which has a ‘business-focused approach’, provides regular advice to Intersport on amending and terminating lease agreements. The team is jointly led by Gábor Hacsi, who is ‘knowledgeable and experienced’, and János Tamás Varga."

The Legal 500 series of legal directories provides an in-depth assessment of law firms based on intensive independent research of firms and their clients.

János Tamás Varga, Managing Partner of VJT & Partners, commented: "This is our best showing in this prestigious guide to date. We are very pleased – and proud – to be recognised with such rankings, which we take as an endorsement by our clients of our capabilities and practices, but recognise that there is always more we can do."

Chambers quotes a client who comments that: "I really like working with him, as he thinks with the client's head, giving advice not only as a legal adviser but trying to understand what the client wants." Chambers refers to VJT & Partners’"recent wide-ranging caseload" which includes assisting private equity investor Euroventures III LP on the sale of its majority shareholding in a Hungarian portfolio company.

In 2015 VJT & Partners was joined by Experienced M&A lawyer András Lovretity. Further details are here.

"Hungarian Watch continues to track down the most current and profitable cross-border Hungarian investment opportunities. Many of them have already materialized, which shows that it is definetly worthwhile for investors to keep a close eye on our brochure" notes, Endre Várady, chief editor of the Hungarian Watch.

"We are proud to issue the celebratory 10th edition of Hungarian Watch. Our brochure is still very well recognized by our partners in different countries all around the world. The popularity of earlier issues proved their necessity and the existence of a demand of our clients for such a brochure" commented János Tamás Varga, Managing Partner of VJT & Partners.

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