Given the "shrinkage" of the village called Earth, arbitrations are sometimes held that are relevant to be conducted in Israel, but for various reasons are held abroad.
Sometimes these arbitrations involve international companies with branches in Israel and/or employees in Israel, where the outcome of the arbitration has a direct impact on parties in Israel, and enforcement of the arbitration in Israel is required. It is also possible that arbitrations that, according to Torah law, will be held abroad, but their outcome has an impact on assets or various individuals/legal entities in Israel. In this case, too, enforcement of the award in Israel is required.
Various countries around the globe are aware of this situation, and since the arbitration tool is common in various countries and between business entities, they have given their opinion on the need to create rules and conventions to regulate the issue.
The best-known and one of the most comprehensive, if not the most comprehensive, convention is known as the “New York Convention.” The New York Convention was adopted in Israel - as it has been adopted in many countries.
Arbitration in Israel vs. Foreign Arbitration
Similar to an arbitration award given in Israel, an arbitration award given abroad - called a "foreign arbitration award" - is not automatically enforceable in Israel and must be first approved by the competent court, in order to "elevate" it to the level of an enforceable judgment through the various enforcement and execution authorities.
The deadline for submitting a request for confirmation of a foreign arbitration award is different from that for an arbitration award rendered in Israel.
According to Section 27 of the Arbitration Law in conjunction with Section 10 of the Arbitration Procedure Regulations, with respect to an arbitration award rendered in Israel, a court will not need to consider a request to annul an arbitration award that was filed after 45 days from the date on which the award was delivered to the party requesting its annulment. An additional restriction - 15 days from the date on which the request for confirmation of the arbitration award was delivered to the party wishing to request the annulment - but no more than 45 days from the date on which the award was delivered to him.
However, when it comes to a foreign arbitration award, Section 29A of the Arbitration Law states that a request for confirmation or annulment of a foreign arbitration award to which a treaty to which Israel is a party and which establishes provisions for this matter, shall be submitted and considered in accordance with those provisions. We were, It is necessary to examine where the ruling was given, whether there is a treaty to which Israel is a party, what is the procedure stipulated in the treaty, and accordingly, the deadline for submitting a request for confirmation or cancellation will be determined.
Why is this important?
This can be acute for both parties - the winner and the loser, the applicant for confirmation or the applicant for annulment - while the applicant for confirmation of a judgment rendered in Israel can submit it at any time, and it would be good if they submitted it within 45 days of its delivery to the party who can and wants to annul it, whereas when it comes to a foreign judgment, the law and procedure, the name and the applicable treaty must be carefully examined, since the applicant for confirmation can and will miss the deadline for confirmation, since In a different way From the law In the country, Exists Limit Date For submission The request For approval.
Similarly, the request for annulment - can be made and the deadline differs from that in the law regarding an arbitration award given in Israel - either in the affirmative - meaning a period longer than the 45-day limit, or 15 days from the date of submission of the request for approval within the 45-day limit - or in the negative - meaning a shorter period.
Immediately upon the issuance of a foreign arbitration award, the ways to enforce a foreign award in Israel should be carefully examined with professionals.
What about interim measures?
Sometimes temporary relief is granted within the framework of arbitration.[1] When it comes to arbitration abroad, a party can also obtain interim relief there.
What will a party who is granted a temporary relief - for example, an injunction - do?
Our firm recently handled a similar case in which the firm's client, in the context of an arbitration conducted abroad, requested that an injunction issued in his favor be immediately enforced in Israel, even before the final arbitration award was issued abroad.
On the one hand, that party can confirm the injunction in Israel as an interim ruling in the context of confirming a foreign ruling. However, the bottom line is that until the ruling is confirmed and the opposing party does not comply with it, time will pass that will likely render the injunction - which is essentially an immediate remedy - irrelevant.
In this case, that party can submit a request for confirmation of a foreign judgment, which is the interim judgment concerning an injunction, and request, as part of the request, an interim relief in Israel, which is an injunction in Israel, until the main proceeding, which is the confirmation of the interim judgment, which is the injunction, is decided.
In conclusion, it should be said that the above are only a few of the many different issues and different solutions that the need to resort to procedures in Israel to enforce a foreign judgment requires.[2]
It should be noted that since this is not a frequent procedure - although recently, given the circumstances of the global village, it has become more and more common - complex and creative solutions are sometimes required for various issues that arise in cases such as this, and it is advisable to consult with experts in each case regarding the circumstances.
The lawyer Tsiki (Zvi) Wolfson – is the founder and managing partner ofWolfson Weinstein & Co.', and it frequently appears in courts and arbitrations related to issues Commercial businesses.
[1] This column will not go into the matter of all the temporary remedies that can be obtained within the framework of arbitration in Israel; it is sufficient for us to say that these are possible.
[2] There may be additional solutions to those issues that this is not the place to address.
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