ISRAEL Law and Practice Contributed by: Nir Kehat, Sivan Wulkan Avisar and Iyar Yariv, Arnon, Tadmor-Levy
12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country The Israeli legal system strongly promotes the use of mediation and arbitration, and courts frequently encourage parties to pursue these alternatives. In most magistrates’ courts, parties are required to attend a mandatory “information, acquaintance, and co-ordination” session (“ Mahut ”), which is essentially an initial mediation session in which the mediator pre- sents to the parties the advantages of the process and attempts to facilitate resolution of the dispute through mediation. A similar mandatory procedure also applies in family courts. 12.2 ADR Within the Legal System Over the years, certain courts have established a practice of referring parties to judicial settlement con- ferences (“ Pishur ”) typically conducted after the filing of affidavits but before the commencement of the evi- dentiary stage. The purpose is to encourage compro- mise and potentially resolve the dispute without the need for a full evidentiary hearing and the submission of summations. Additionally, courts may refer cases to mediation and encourage the parties to resolve the dispute by arbitration. These proceedings are not mandatory but are subject to both parties’ consent. 12.3 ADR Institutions Israel has a number of well-established ADR institu- tions, many of which are affiliated with the Israeli Bar Association. These centres provide mediation and arbitration services and are deeply integrated into the legal community. They are frequently staffed by retired judges who serve as mediators and arbitrators. Nota- ble examples include the Mishkan for Arbitration and Dispute Resolution and the Israeli Institute for Com- mercial Arbitration.
13. Arbitration 13.1 Laws Regarding the Conduct of Arbitration Arbitration in Israel is governed by the Arbitration Law, 1968. Under said law, an arbitral award may be submitted to the court for approval, after which it becomes enforce- able in the same manner as a court judgment. In 2024, the International Commercial Arbitration Law was enacted, establishing a modern legal framework and procedural rules for the conduct of international commercial arbitration in Israel. 13.2 Subject Matters Not Referred to Arbitration Matters that cannot be referred to arbitration are those that cannot legally be the subject of an agreement between the parties. These include constitutional questions, criminal proceedings, issues of personal status, and any matter in which decision-making authority is reserved to the state. In addition, rights arising under mandatory protective labour laws are excluded from arbitration, given their social function of safeguarding employees. Disputes with a signifi- cant impact on third parties or the public at large are likewise deemed unsuitable for arbitration. 13.3 Circumstances to Challenge an Arbitral Award Courts may revoke or modify an arbitral award upon application by a party. The grounds for annulment include: • the absence of a valid arbitration agreement; • the appointment of an arbitrator lacking proper authority; • the arbitrator acting without jurisdiction or in excess thereof; • denial of a party’s fundamental right to present claims or adduce evidence; • failure to adjudicate an issue properly submitted for determination; • failure to provide adequate reasoning where statu- torily required; • failure to apply the applicable law where mandated;
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