A foreign company filed suit in Israel. The defendants asked court to require the foreign company to deposit a bond to ensure their expenses. The court ruled that, in general, the court may require under a defendant's request, to deposit guarantee fees to ensure the defendant's costs if he wins by law and may detain the procedure till the funds were deposited. For that purpose, the court to consider the financial situation of the company and the chances of the defendant to have his funds it the claim against him will be dismiss. Also the court to consider the chances of the case, so that in case were the company has higher chances to win this case, court will may not ask it to deposit the guarantee fees. In that case, and since the company was a foreign company that does not have any assets in Israel, the court ordered the company to deposit guarantee fees.
Published in Afik News 202 13.04.2016
Related articles
Extension Order to a Collective Agreement Regarding Reservists and Their Spouses, and the Accumulation of Annual Leave for Certain Employees
Labor Law
On April 29, 2026, an extension order was published applying to all employees and employers in Israel, except for employees and employers in the public sector (to whom a separate collective agreement dated March 26, 2026, applies). Among the provisions in the order: protection for reservists from dismissal and being placed on unpaid leave for […]
Cancellation of a real estate agreement after the purchaser acted as owner will be deemed a taxable repurchase
Real estate in Israel and around the world
Taxation and Government Incentives and Funding
Dispute Resolution
A landowner and a developer signed a combination agreement to build an office tower. A cautionary note was recorded in favor of the developer. The developer did not build the building, but for 18 years acted as the owner of the property: demolished an old structure, promoted a zoning plan that significantly increased the land’s […]
The internal judicial institutions have exclusive jurisdiction over sports and association affairs
Sports Law
Dispute Resolution
Prior to the start of the match between Hapoel Tel Aviv and Maccabi Tel Aviv, pyrotechnic devices (flares, fireworks, and smoke grenades) were ignited in the Hapoel fans’ section, some were thrown toward fans and police officers, causing injuries and cancellation of the match. The Disciplinary Court of the Israeli Football Association convicted Hapoel of […]
The duty of good faith requires grant of extension in a material breach of contract where the terminating party’s breach led to the counter-breach
Commercial, Banking and Financial
Real estate in Israel and around the world
Dispute Resolution
After an agreement for the sale of a residential home was signed and the late provision of Form 4 (Occupancy Permit) by the seller, the purchasers failed to timely pay the balance of the consideration. Shortly thereafter, the seller sent an immediate notice of termination based on a material breach of contract. The Supreme Court […]