ISRAEL Law and Practice Contributed by: Joseph Sprinzak and Rahel Rimon, J.SPRINZAK
7.3 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards Israel is a party to the 1958 New York Convention on the Enforcement and Ratification of Foreign Arbitral Awards, which provides for the stay of judicial pro - ceedings in the case of a foreign arbitration agreement unless it finds that the agreement is null and void, inoperative or incapable of being performed. Section 29 of the Israeli Arbitration Law – 1968 pro - vides that matters regarding the enforcement or can - cellation of an arbitration award governed by an inter - national convention to which Israel is a party will be dealt with according to the provisions of that conven - tion. As a result, a court considering the ratification of a foreign arbitral award would give consideration to such matters as whether the subject matter is capa - ble of arbitration according to the laws of Israel and whether recognition and enforcement of the award is consistent with Israeli public policy. 7.4 Arrest of Vessels Subject to Foreign Arbitration or Jurisdiction The Admiralty Court has jurisdiction to order the attachment of a vessel as security for foreign judicial or arbitral proceedings, upon provision of prima facie evidence that the ship-owner will not be in a posi - tion to satisfy a judgment or arbitral award. Moreover, interim relief in the form of ship arrest or temporary attachment may be obtained before the foreign arbi - tration proceedings have been initiated (CA 102/88 Sil- ver Goose Delicatessen Ltd v Cent or SARL ). 7.5 Domestic Arbitration Institutes There are a number of expert maritime lawyers and retired judges who specialise in handling maritime arbitrations. 7.6 Remedies Where Proceedings Are Commenced in Breach of Foreign Jurisdiction or Arbitration Clauses A defendant facing proceedings in breach of an exclu - sive foreign jurisdiction or arbitration clause may ask for a stay of the proceedings until judgment is ren - dered by a competent foreign tribunal.
fact, which must be proved in the usual way, generally through expert testimony. With regard to jurisdiction clauses, the Israeli courts will give effect to exclusive jurisdiction clauses, even where the action sought to be stayed is in rem. In the case of CA 8205/16 M/V Thor Horizon , the Supreme Court held that a foreign jurisdiction clause contained in a bill of lading issued by a sub-charterer could apply to a claim in rem against the vessel for damage to goods. The Supreme Court emphasised that seizure of the vessel in Israel alone, without further links to the country, would not be sufficient to determine that Israel is the convenient forum in the face of a foreign jurisdiction clause. Further, the fact that the damage to the goods was discovered upon the arrival of the vessel in Israel was not, on its own, sufficient to weigh against a stay of proceedings in Israel. Nonetheless, in that case, prescription in the foreign forum meant that, in the particular circumstances, the convenient forum for hearing the case was in fact Israel. In another case, ALA 1785/15 Cosco Container Lines Co Ltd v Alison Transport Inc , the Supreme Court upheld the District Court decision that a considera - tion against an argument that Israel was not a forum non conveniens was that suit was being brought against the carrier, shipper and other parties, and it was important for all the disputes to be heard in a single forum. 7.2 Enforcement of Law and Arbitration Clauses Incorporated Into a Bill of Lading In the event of a foreign arbitration clause, Section 6 of the Israeli Arbitration Law – 1968 provides that when an action is brought before a court in a dispute in which it had been agreed to refer to arbitration, and if an international convention to which Israel is a par - ty applies to the arbitration and that convention lays down provisions for a stay of proceedings, the court will exercise its power under Section 5 in accordance with and subject to those provisions. This is also true where the arbitration clause is in a charterparty incorporated into the relevant bill of lad - ing, subject always to the true construction of the relevant arbitration clause (ALA 1917/19 M/V Chem Antares (2019)).
292 CHAMBERS.COM
Powered by FlippingBook