A non-Israeli company filed a lawsuit in Israel against an Israeli company.
The Court held that when a company files a claim, the default is that the company will be obligated to deposit a guarantee for the defendant's expenses. The burden of proof that there is no need for a guarantee or that only a minimal guarantee is required is on the plaintiff and among the circumstances to be considered are the financial status of the company, the circumstances of the case and the chances of the proceeding. Insofar as this is a foreign company, it should be taken into account that the probability of collection of the expenses are low unless the company has assets in Israel from which the expenses may be collected. In this case the Company did not prove that its financial status is firm and that it has assets in Israel from which expenses may be repaid and therefore the company was required to deposit a guarantee as a condition for opening the proceedings.