Lex Mundi Global Arbitration Institutions Guide |
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Israel |
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(Middle East)
Firm
S. Horowitz & Co.
Contributors
Noam Zamir |
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Name of Arbitral Institution; with abbreviation, if any. | There is no statutory Arbitral Institution in Israel but, rather, civil Arbitral Institutions founded by civil or public organizations, in order to encourage alternative dispute resolution procedures. |
Where is the seat of the Arbitral Institution? | The two leading civil Arbitral Institutions in Israel are the Israeli Institute of Commercial Arbitration (IICA) and The Center for Arbitration and Dispute Resolution (CADR). Both of them are seated in Tel Aviv, Israel. |
Is there an umbrella organization for the Arbitral Institution? | No. |
How is the Arbitral Institution structured? | Not applicable |
Is there a compulsory list of arbitrators that parties are required to choose from? | In general, the Arbitration Law does not refer to a compulsory list of arbitrators. However, there are certain civil Arbitral Institutions in Israel which do refer to a compulsory list of arbitrators. |
Can the place of arbitration freely be chosen by the parties? Is there a default place of arbitration? | The place of arbitration is subject to the provisions of the relevant arbitration agreement. If no such provisions exist, then the arbitrator has the authority to determine the place of arbitration. |
What is the amount of the registration fee? | The Arbitration Law does not contain provisions specifying a registration fee. However, the parties are naturally obliged to pay the arbitrator his fees and ancillary expenses. It should be noted in this context that the two said civil Arbitral Institutions do require that a registration fee is paid. In this respect, the current fee requested by the IICA is 0.8% of the damages sought (up to a maximum of NIS 2,500,000); 0.6% for any damages sought in a sum exceeding NIS 2,500,000, but not exceeding NIS 10,000,000; and 0.4% for any damages sought in a sum exceeding NIS 10,000,000. The current registration fee requested by the CADR is approximately US$350. |
What is the average cost of an arbitration in the following cases? 1 arbitrator, amount in dispute = $1 million | The cost of an arbitration in the described case depends on many factors and, therefore, no estimation can be given without knowing the circumstances surrounding the dispute. |
What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $10 million | The cost of an arbitration in the described case depends on many factors and, therefore, no estimation can be given without knowing the circumstances surrounding the dispute. |
What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $100 million | The cost of an arbitration in the described case depends on many factors and, therefore, no estimation can be given without knowing the circumstances surrounding the dispute. |
Who pays advances on costs? What happens in the event of default? | The Arbitration Law does not prescribe for advances to be paid on account of costs. However, the arbitrator has the discretion to decide on the allocation and timing of the payment of his fee and expenses, as well as to order the parties to deposit a guarantee as security for such payments. In the event of default, the arbitrator has the authority to delay the progress of the hearings and delivery of his award, until his fees and the ancillary expenses are paid. In such event, the non-defaulting party may pay the unpaid fees and expenses. |
Does the Arbitral Institution have formalistic procedures (e.g. terms of reference) that must be complied with? If so, which ones? | Unless provided otherwise in the arbitration agreement, the arbitrator will not be bound by the substantive law, the rules of evidence or the civil procedure. However, there are some matters with respect to which the arbitrator is subject to formalistic procedures (e.g., a witness who testifies will have the same duties and privileges as those conferred on a witness who testifies in court; if agreed by the parties that the award can be appealed, then the arbitration sessions must be recorded in a protocol or by some other means as agreed in the arbitration agreement and the arbitrator must detail his award). It should be mentioned that arbitration proceedings conducted before certain civil Arbitral Institutions are subject to the rules drawn up and published by those Institutions. |
Which languages can be used for communication with the Arbitral Institution? | Not applicable |
Who is the main point of contact for the parties within the Arbitral Institution? | Not applicable |
Are there restrictions on the language that the arbitration may be conducted in? | The Arbitration Law does not limit the parties to choose the language according to which the arbitration is to be conducted. |
Who appoints substitute arbitrators? | The first arbitrator is appointed by the parties or a third party who is nominated in the arbitration agreement or by the court to make such an appointment. The same holds true with regard to the appointment of any substitute arbitrator. |
Are there specific regulations for multi-party arbitrations or joinders to the proceedings? | No. |
Are oral hearings compulsory? | Unless otherwise stipulated in the arbitration agreement, the arbitrator has the authority to give his decision regarding the procedures of the arbitration. However, it should be noted that one of the reasons for setting aside an award is if a party was not given a suitable opportunity to present his arguments. |
What are common evidence-taking practices? | The evidence-taking practice is subject to the provisions of the relevant arbitration agreement. Where no such provisions exist, the arbitrator has the discretion to determine the evidence-taking procedure. In practice, witnesses usually file written affidavits and are cross-examined during the arbitration. The same holds true with respect to expert opinions. |
What is the average duration of arbitration proceedings? | It is difficult to state the average duration of arbitration proceedings as considerations such as the complexity of the matter, the number of parties involved, the number of witnesses required, etc., will need to be taken into account for making such determination. |
What is the timeframe for rendering the award? | Unless otherwise agreed by the parties, the time frame for rendering the award is three months from the date of commencement of the arbitration or three months from the date on which the arbitrator was formally notified in writing to commence the arbitration, whichever is the earlier. |
Are extensions to time limits permissible? | Unless otherwise agreed by the parties, the arbitrator can extend the time frame for rendering his award by up to three months. In addition, the court may, from time to time, extend the period for grant of the award for a longer period it deems necessary to prescribe. |
Can the arbitral tribunal impose interim measures? Is there a competing competency of the ordinary courts with regard to interim measures? | The question of the imposition of interim measures by an arbitrator has not yet been fully determined by the Israeli Supreme Court. However, some case law provides that if the parties authorize the arbitrator to impose interim measures, then he can only do so if such measures do not affect third parties and can be enforced not through the regulatory authorities. |
Do the institutional rules provide for an emergency arbitrator? | No. |
Are there any specific regulations for expedited proceedings? If so, is there a deadline for rendering such an award? | No regulations have been enacted under the Arbitration Law allowing for expedited arbitral proceedings. However, some of the civil Arbitral Institutions do provide, under certain circumstances, the option of expedited proceedings, including curtailing the rendering of an award, such that the award will be rendered soon after the submission of the parties' summations and no later than seven days after filing same with the arbitrator. |
Are arbitral awards submitted for scrutiny? If so, to whom? | No. However, it should be mentioned that the Arbitration Law contains certain provisions that pave the way for filing an appeal on the award immediately after its receipt. |
Do costs necessarily follow the event? | The arbitrator can allocate the costs of the arbitration proceedings between the parties in his own discretion. In most cases, the costs do follow the event. |
Can an arbitral award be annulled in your jurisdiction? If yes, do the reasons for annulment in principle correspond to the reasons for denial of enforcement according to the New York Convention? | Yes, an arbitral award can be annulled. In principle, at least some of the reasons for annulment of an arbitral award, as set out in the Arbitration Law, correspond with reasons for denial of enforcement according to the New York Convention. However, the Arbitration Law sets out additional reasons for annulment of an award (e.g., a ground exists on which a court would have set aside a final, non-appealable judgment). |
Link to institutional rules | Not applicable |
Link to model clause | There is no formal model clause. However, one of the civil Arbitral Institutions has published the following proposed model clause (in free translation from Hebrew): "Any dispute between the parties regarding the contract, its execution, interpretation, applicability or validity, will be resolved in arbitration conducted before The Israeli Institute of Commercial Arbitration and in accordance with its rules." |
Lex Mundi Global Arbitration Institutions Guide
There is no statutory Arbitral Institution in Israel but, rather, civil Arbitral Institutions founded by civil or public organizations, in order to encourage alternative dispute resolution procedures.
The two leading civil Arbitral Institutions in Israel are the Israeli Institute of Commercial Arbitration (IICA) and The Center for Arbitration and Dispute Resolution (CADR). Both of them are seated in Tel Aviv, Israel.
No.
Not applicable
In general, the Arbitration Law does not refer to a compulsory list of arbitrators. However, there are certain civil Arbitral Institutions in Israel which do refer to a compulsory list of arbitrators.
The place of arbitration is subject to the provisions of the relevant arbitration agreement. If no such provisions exist, then the arbitrator has the authority to determine the place of arbitration.
The Arbitration Law does not contain provisions specifying a registration fee. However, the parties are naturally obliged to pay the arbitrator his fees and ancillary expenses. It should be noted in this context that the two said civil Arbitral Institutions do require that a registration fee is paid. In this respect, the current fee requested by the IICA is 0.8% of the damages sought (up to a maximum of NIS 2,500,000); 0.6% for any damages sought in a sum exceeding NIS 2,500,000, but not exceeding NIS 10,000,000; and 0.4% for any damages sought in a sum exceeding NIS 10,000,000. The current registration fee requested by the CADR is approximately US$350.
The cost of an arbitration in the described case depends on many factors and, therefore, no estimation can be given without knowing the circumstances surrounding the dispute.
The cost of an arbitration in the described case depends on many factors and, therefore, no estimation can be given without knowing the circumstances surrounding the dispute.
The cost of an arbitration in the described case depends on many factors and, therefore, no estimation can be given without knowing the circumstances surrounding the dispute.
The Arbitration Law does not prescribe for advances to be paid on account of costs. However, the arbitrator has the discretion to decide on the allocation and timing of the payment of his fee and expenses, as well as to order the parties to deposit a guarantee as security for such payments. In the event of default, the arbitrator has the authority to delay the progress of the hearings and delivery of his award, until his fees and the ancillary expenses are paid. In such event, the non-defaulting party may pay the unpaid fees and expenses.
Unless provided otherwise in the arbitration agreement, the arbitrator will not be bound by the substantive law, the rules of evidence or the civil procedure. However, there are some matters with respect to which the arbitrator is subject to formalistic procedures (e.g., a witness who testifies will have the same duties and privileges as those conferred on a witness who testifies in court; if agreed by the parties that the award can be appealed, then the arbitration sessions must be recorded in a protocol or by some other means as agreed in the arbitration agreement and the arbitrator must detail his award). It should be mentioned that arbitration proceedings conducted before certain civil Arbitral Institutions are subject to the rules drawn up and published by those Institutions.
Not applicable
Not applicable
The Arbitration Law does not limit the parties to choose the language according to which the arbitration is to be conducted.
The first arbitrator is appointed by the parties or a third party who is nominated in the arbitration agreement or by the court to make such an appointment. The same holds true with regard to the appointment of any substitute arbitrator.
No.
Unless otherwise stipulated in the arbitration agreement, the arbitrator has the authority to give his decision regarding the procedures of the arbitration. However, it should be noted that one of the reasons for setting aside an award is if a party was not given a suitable opportunity to present his arguments.
The evidence-taking practice is subject to the provisions of the relevant arbitration agreement. Where no such provisions exist, the arbitrator has the discretion to determine the evidence-taking procedure. In practice, witnesses usually file written affidavits and are cross-examined during the arbitration. The same holds true with respect to expert opinions.
It is difficult to state the average duration of arbitration proceedings as considerations such as the complexity of the matter, the number of parties involved, the number of witnesses required, etc., will need to be taken into account for making such determination.
Unless otherwise agreed by the parties, the time frame for rendering the award is three months from the date of commencement of the arbitration or three months from the date on which the arbitrator was formally notified in writing to commence the arbitration, whichever is the earlier.
Unless otherwise agreed by the parties, the arbitrator can extend the time frame for rendering his award by up to three months. In addition, the court may, from time to time, extend the period for grant of the award for a longer period it deems necessary to prescribe.
The question of the imposition of interim measures by an arbitrator has not yet been fully determined by the Israeli Supreme Court. However, some case law provides that if the parties authorize the arbitrator to impose interim measures, then he can only do so if such measures do not affect third parties and can be enforced not through the regulatory authorities.
No.
No regulations have been enacted under the Arbitration Law allowing for expedited arbitral proceedings. However, some of the civil Arbitral Institutions do provide, under certain circumstances, the option of expedited proceedings, including curtailing the rendering of an award, such that the award will be rendered soon after the submission of the parties' summations and no later than seven days after filing same with the arbitrator.
No. However, it should be mentioned that the Arbitration Law contains certain provisions that pave the way for filing an appeal on the award immediately after its receipt.
The arbitrator can allocate the costs of the arbitration proceedings between the parties in his own discretion. In most cases, the costs do follow the event.
Yes, an arbitral award can be annulled. In principle, at least some of the reasons for annulment of an arbitral award, as set out in the Arbitration Law, correspond with reasons for denial of enforcement according to the New York Convention. However, the Arbitration Law sets out additional reasons for annulment of an award (e.g., a ground exists on which a court would have set aside a final, non-appealable judgment).
Not applicable
There is no formal model clause. However, one of the civil Arbitral Institutions has published the following proposed model clause (in free translation from Hebrew): "Any dispute between the parties regarding the contract, its execution, interpretation, applicability or validity, will be resolved in arbitration conducted before The Israeli Institute of Commercial Arbitration and in accordance with its rules."