ISRAEL Law and Practice Contributed by: Zvi Bar-Nathan and Daphna Kapeliuk, Goldfarb Gross Seligman & Co
10.3 Recovering Interest and Legal Costs Unless otherwise agreed by the parties, the tribunal is empowered to award costs, including legal fees, in addition to the tribunal’s costs and fees. Generally, the tribunal will allocate legal costs to the prevailing party. While in public-court litigation the courts tend to award nominal costs, in arbitration tribunals, espe - cially in complex international arbitrations, real costs tend to be awarded. As for awarding interest, if parties agree on the inter - est to be awarded, the tribunal will be bound by the agreement. If the parties do not agree on the inter - est, under Israeli law the tribunal has the authority to award interest in accordance with the Ordering of Interest and Linkage Law, 1981. 11. Review of an Award 11.1 Grounds for Appeal An award may be set aside only if one of the condi - tions set in Article 43 (b) of the ICA Law applies. An application for setting aside the award shall be made within 90 days of the date on which the party making the application had received a copy of the award. 11.2 Excluding/Expanding the Scope of Appeal The parties cannot exclude the court’s power to set aside the arbitration award and they may not expand it. 11.3 Standard of Judicial Review The judicial review is limited to the conditions set out in Article 43 (b) of the ICA Law.
the ICA Law, by way of adoption of the UNCITRAL Model Law. 12.2 Enforcement Procedure To date no procedural regulations regarding the appli - cation of the ICA Law have been enacted. It is expect - ed that they will be enacted soon. 12.3 Approach of the Courts Generally, the Israeli courts are considered to take a pro-enforcement stand on arbitration awards. 13. Miscellaneous 13.1 Class Action or Group Arbitration The ICA Law does not make any reference to class- action arbitrations and these do not tend to take place in Israel. 13.2 Ethical Codes Israeli counsel are bound by the ethical rules of the Israel Bar Association. The courts have compared arbitrators to judges with regard to the ethical rules that should be applicable to them. Thus, the ethical rules applicable to judges apply also to arbitrators. 13.3 Third-Party Funding There are no rules or restrictions on third-party funders. There are a number of funders active in Israel that provide funding both to public court litigation and to arbitration. 13.4 Consolidation Consolidation requires the consent of all the parties involved. 13.5 Binding of Third Parties The courts have recognised three “extension circles” to the arbitration agreement, which may each bind third parties to the arbitration agreement. The first circle includes parties which, by interpretation of the arbitration agreement and the contractual relationship between the parties, are understood to have agreed to be part of the arbitration. The second extension circle includes successors of the parties to the arbitra - tion agreement, pursuant to Section 4 of the Arbitra - tion Law. The third extension circle relates to those
12. Enforcement of an Award 12.1 New York Convention
Israel is a signatory to the New York Convention. It ratified the Convention in 1959, and in 1974 it incor - porated the provisions of the Convention by way of an amendment to the Arbitration Law. The provisions of the Convention have further been incorporated in
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