A client whose investment account with a foreign company was blocked, served a statement of claim to the Israeli company through which the account was opened. The Israeli company contended that it is not authorized to receive service of process on behalf of the foreign company since it only provides technical support.
The Court held that the Israeli company is the representative of the foreign company for the purpose of service of process. Israeli law allows serving a statement of claim to a representative in Israel who regularly represents a foreign corporation in connection with its affairs in Israel. Service is permitted when the connection between the representative and the foreign defendant is regular and continuous, and the statement of claim deals with the same matter. Here, there were no ownership or control ties between the local Israeli company and the foreign company, nor was there an identity between the shareholders or managers. However, the Israeli company provided a comprehensive service envelope in Hebrew, assisted the Israelis investors in opening accounts and even offered guidance on the trading system. Therefore, this constitutes a regular and continuous connection in the same matter that enables lawful service.