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
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