Legal Updates

A non-Israeli company is to deposit a guarantee upon filing a claim, except in exceptional cases

September 19, 2017
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Published in Afik News 241 11.10.2017

A non-Israeli company filed a claim in Israel and argued that it is a subsidiary of a well-known public company and is under the control of a wealthy businessman.

The Court held that ordinarily a claiming company is to deposit a guarantee for costs, especially in the case of a non-Israeli company, unless extraordinary circumstances in which the Court is convinced of the economic strength of the company. In this case, the non-Israeli company has no assets in Israel, did not disclose its address abroad and did not specify the assets and financial means at its disposal and therefore is not exempt from depositing a guarantee.

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