An American claimant and a company from the Marshall Islands sued in an Israeli Court and were required to deposit a guarantee for the defendant's expenses, but after part of the guarantee was used to pay expenses, they did not complete it to the original amount.
The court found that the claim should be struck out because the amount of the guarantee was not completed. As a rule, a company filing the claim, and a foreign company in particular, must deposit a guarantee to secure the opposing party's expenses. To the extent that any use is made of the guarantee funds, the guarantee must be completed to the full amount. Here, as the amount of the bond was partially used and the claimants did not complete the amount of the guarantee, it is correct to strike-out out the claim.
For full disclosure, the Israeli party who won the proceeding was represented by attorneys Doron Afik, Yair Aloni and Shelly Wilner of Afik & Co.