ISRAEL Law and Practice Contributed by: Charles Gottlieb and Osnat Issan, Gottlieb Gera & Co Advocates
notice is provided and consent is obtained (unless such assignment is expressly permitted without notice and consent under the relevant agreement). 2.6 Lease Enforcement 2.6.1 Restrictions on Lessors’ Abilities Restrictions on a lessor’s ability to terminate an air - craft lease, export an aircraft and/or sell an aircraft following the lease termination may be restricted in accordance with the provisions of the Insolvency and Economic Rehabilitation Law 2018 (the “Insolvency Law”) or as a result of the requisition of the aircraft by the Minister of Defence, as noted in 2.4.6 Priority of Third Parties’ Rights. 2.6.2 Lessor Taking Possession of the Aircraft Involuntary physical repossession by the lessor would typically require a court order for the return of the asset to the lessor’s control. 2.6.3 Specific Courts for Aviation Disputes Israeli legislation does not refer aviation disputes to any specific court. Given the value of the dispute, civil disputes relating to aircraft would typically be within the jurisdiction of the district courts. Disputes con - cerning the enforcement of charges will sometimes be resolved before the registrar of the execution office. 2.6.4 Summary Judgment or Other Relief Lessors wishing to enforce an aircraft lease should note that summary judgments are rarely granted in Israeli jurisprudence, as the threshold for opposing a summary judgment is very low. Temporary remedies such as equitable or injunctive relief are factually dependent and will depend to a large extent on the “balance of convenience” between the parties as interpreted by the Israeli courts. In granting temporary injunctive relief, the courts are likely to require monetary collateral to secure the inter - ests of the lessee and third parties. The court will also consider certain additional equitable considerations, including the proper disclosure of relevant facts and the lack of delay on the part of the lessor in applying to the court. The estimated period for obtaining a court order is dependent on the facts and circumstances of the
relevant matter and generally ranges from weeks to months. 2.6.5 Domestic Courts’ Approach to Foreign Laws and Judgments Foreign Governing Law As Israeli legislation does not generally prohibit par - ties from choosing foreign law as the governing law of their contracts, Israeli courts will generally uphold a foreign choice of law that was made in good faith. However, an Israeli court may refuse to apply such foreign law if its application would lead to a result that the court deems to be incompatible with Israel’s public policy, which has been narrowly construed. In certain cases, Israeli courts may also determine that certain mandatory legislation is applicable to persons, actions or assets located in Israel, notwithstanding the Israeli courts will generally acknowledge a contrac - tual choice of a recognised foreign jurisdiction in dis - putes between contractual parties to a commercial agreement, unless there are special reasons justify - ing deviation from such choice, such as public policy, expiration of a limitation period in the foreign forum or insolvency proceedings in Israel. However, the con - tractual language should be clear about the exclusivity of such foreign jurisdiction. expressed intention of the parties. Submission to Foreign Jurisdiction Israeli courts have the power to stay an action where it is shown that there is some other forum having com - petent jurisdiction that is more appropriate for the trial of the action or in which the case can be tried more suitably, given the interests of all the parties. Waiver of Immunity Israeli courts will generally uphold a waiver of immu - nity by the parties of a lease, including a sovereign immunity. 2.6.6 Domestic Courts’ Recognition of Foreign Judgments/Awards For the recognition of foreign arbitral awards by Israeli courts, see 2.6.12 Enforcement of Foreign Arbitral Decisions .
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