Legal Updates

A foreign verdict will be enforced even if service of process of the original statement of claim was not pursuant to the law of the jurisdiction granting it

March 6, 2017
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A Russian resident who relocated to Israel guaranteed to the bank debts of a company owned by him and the Russian Court granted a verdict against him in default of defense in the amount of ILS 52 million. The Bank sought to enforce the judgment in Israel but the defendant argued that the statement of claim in the Russian proceedings were not duly served on him as required by Russian law.

The Supreme Court ordered the enforcement of the Russian judgment in Israel and held that the Israeli Court does not examine the content of the foreign judgment but only the fulfillment of the conditions for enforceability and will enforce even a holding that has material and overt mistakes. The Court examines whether, objectively, the principals of natural justice were jeopardized by not granting the defendant reasonable opportunity to state his case and bring evidence before the foreign Court before granting the verdict. An argument that service of process was not duly made under the laws of the jurisdiction of the verdict are arguments fitting an appeal and may not be raised as part of a motion for enforcement of a foreign judgment in Israel.