Legal Updates

A foreign arbitration award may be enforced in Israel even against a party that refused to participate in the arbitration proceedings

November 28, 2022
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A distributor of the glasses brand VERSO got into a dispute with the singer Omer Adam over presenter services given to the brand, which were given by a company on his behalf. In accordance with the jurisdiction clause in the agreement, an arbitration award was granted in Florida against the company that represents the singer, but not against the singer who was not a signatory to the arbitration agreement, despite the fact that neither showed up to the arbitration proceeding.

The Court held that the arbitration award is enforcable in Israel, despite the fact that the case was held in Florida. In accordance with the New York Convention that Israel is a signatory to, there are five cases in which it is possible not to enforce a foreign arbitration award in Israel: lack of validation to the arbitration clause or disqualification of one of the parties, no proper notification of the hearings, lack of jurisdiction or operating outside the scope of the jurisdiction, deviation from the arbitration agreement or agreement on arrangements that disqualify the law of the arbitration, and lack of validity of the arbitration award. Refusal of a party to take part of the arbitration proceedings does not qualify as lack of notification of the proceedings. Thus, the arbitration award is enforcable in Israel.