ISRAEL Law and Practice Contributed by: Charles Gottlieb and Osnat Issan, Gottlieb Gera & Co Advocates
The recognition and enforcement of foreign judgments by Israeli courts is governed by the framework set out in the Foreign Judgments Enforcement Law 1958 (the “Enforcement Law”). Under the Enforcement Law, Israeli courts may – at their discretion – declare a for - eign judgment to be enforceable if: • it was obtained before a court of competent juris - diction according to the laws of the state in which the judgment was given; • it is no longer appealable; • the obligations imposed by it are enforceable under the Israel laws applicable to enforcement of judgments and its content does not contradict the public policy, security or sovereignty of Israel; and • it is enforceable in the country in which it was given. The Enforcement Law further provides that a judg - ment will not be declared enforceable if any of the following is proven before the court: • the judgment was obtained fraudulently; • the defendant was not given a reasonable oppor - tunity to make its claims and provide its evidence before the judgment was given; • the judgment was made by a court that is not authorised to issue such judgment under the rules of international private law that apply in Israel; • the judgment conflicts with another valid judgment given in the same matter between the same par - ties; or • an action between the same parties in the same matter was not pending in any Israeli court at the time that the lawsuit was initiated in the foreign court. The law further provides for a requirement of reciproc - ity whereby Israeli courts will not declare a judgment given in a particular country as enforceable in Israel if, under the laws of such country, judgments given by Israeli courts are not enforced. This requirement may be waived at the request of the Attorney General of the State of Israel. The Enforcement Law provides for a statute of limitations of five years from the date of the judgment being enforced.
A foreign judgment that was declared by the Israeli courts to be enforceable shall be considered as a judgment awarded in Israel for execution purposes. The Enforcement Law provides for the recognition of a foreign judgment if the following conditions are satisfied: • Israel has entered into an agreement with a foreign country applicable to the judgments of a court of such country; • Israel undertook in such agreement with such for - eign country to recognise foreign judgments of the same nature, with such undertaking applying only to foreign judgments that would be enforceable under Israeli law; and • the foreign judgment meets the terms and condi - tions as set out in the agreement between Israel and such country. Israel is a party to four treaties on the enforcement of foreign judgments – with Austria, Germany, the UK, and Spain. However, only the treaty between Israel and Germany has been implemented into domestic law. 2.6.7 Judgments in Foreign Currencies Israeli law does not preclude lessors from obtaining a judgment in a foreign currency. 2.6.8 Limitations on Lessors’ Actions Following Termination Israeli law does not limit contractual provisions that would allow a lessor to charge additional rent follow - ing termination of a lease for default, particularly if the aircraft is not returned to the lessor. A lessor’s ability to recover default interest is limited under the Interest Law 1957, as well as the Insolvency Law. 2.6.9 Lessor’s Requirement to Pay Taxes/Fees A lessor enforcing its lease may be subject to the pay - ment of statutory court fees, which may range from a nominal amount up to 2.5% of the amount claimed under the lease.
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