ISRAEL Law and Practice Contributed by: Nir Kehat, Sivan Wulkan Avisar and Iyar Yariv, Arnon, Tadmor-Levy
There is no statutory cap on the quantum of damages; however, awards may be subject to limitation in par- ticular circumstances based on the extent of compen- sation assessed and considerations of public policy. While punitive damages are recognised in theory under Israeli law, they are exceedingly rare and granted only in the most exceptional circumstances. 9.3 Pre-Judgment and Post-Judgment Interest The Award of Interest and Linkage Law regulates the application of interest and linkage. Pre-judgment interest is determined either in accordance with the parties’ contractual arrangements or, in the absence of such agreement, at the discretion of the court. Post-judgment interest and linkage are prescribed by law and are almost invariably awarded, though the court retains discretion in their application. Where the parties have agreed upon a higher con- tractual interest rate, the court may enforce that rate. 9.4 Enforcement Mechanisms of a Domestic Judgment Domestic judgments are enforced through proceed- ings before the Execution Office. Where a judgment requires the performance of a specific act, enforce- ment may also be pursued through contempt of court proceedings, or by the appointment of a receiver who will be empowered to perform the defendant’s obliga- tion on behalf of the defendant. 9.5 Enforcement of a Judgment From a Foreign Country Enforcement of foreign civil judgments is regulated under the Israeli Foreign Judgments Enforcement Law, 1958. Per the law, a foreign judgment is a final civil ruling issued by a competent judicial authority in a foreign country. It may include a judgment for the payment of compensation or damages to an injured party, even when not given in a purely civil matter. The Israeli court may enforce a foreign judgment if all of the following conditions are met:
• The judgment must have been issued by a compe- tent authority according to the laws of the foreign country. • The judgment must be final and no longer subject to appeal under foreign law. • The content of the judgment must not violate Israeli legal principles or moral standards. • The judgment must be enforceable in the country where it was issued. Enforcement of a foreign judgment in Israel is car- ried out by submitting a motion for enforcement to an Israeli civil court. The appropriate court – either the magistrates’ court or the district court – is determined based on the nature of the relief sought and the court’s jurisdiction. Although the enforcement is mainly a procedural pro- ceeding, the respondent to the motion for enforce- ment has the right to object to the motion. Once a foreign judgment is declared enforceable by the Israeli court, it holds the same validity and effect as a judgment issued by an Israeli court. After the court grants the motion for enforcement, the judgment can then be executed through the Israeli Execution Office, if further enforcement actions are necessary. An interim decision may be appealed only by leave (by filing a motion for leave to appeal), whereas a final judgment may be appealed as of right. Judgments of the magistrates’ court are appealed to the district court, while judgments of the district court (while sitting as a trial court) are appealed to the Supreme Court. A judgment of a district court, rendered within the framework of an appeal against a magistrates’ court judgment, may only be appealed to the Supreme Court by leave. 10. Appeal 10.1 Levels of Appeal or Review to a Litigation
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