Legal Updates

A non-Israeli verdict holdings are applicable even if the verdict did not pass a procedure of enforcement in Israel

March 8, 2016
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An Israeli shareholder of a company incorporated in Ireland filed a claim in Israeli against the person whom he appointed as his trustee, agent and authorized representative and director of the company for misappropriation the assets of the company he managed. The defendant argued, inter alia, that he has rights in the company despite the fact that a judgment previously given in Ireland stated that he does not.

The Court held that a foreign judgment is not enforceable in Israel unless it passed a formal process of recognition or enforcement in accordance with Israeli law. However, one can use in Israel specific holdings set in a foreign judgment and the only defense against such use is that the foreign judgment was obtained by fraud, without jurisdiction or without due process. In this case the Court held that the foreign judgment can only be attacked in a Court in Ireland and one cannot oppose the holdings in it in an Israel Court.

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