Consent to exclusive jurisdiction of a Court in a certain jurisdiction will usually be upheld in Israel

June 18, 2019
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An Israeli distributor engaged in a distribution agreement with a communications equipment supplier. The agreement contained a provision under which any dispute will be heard in a Court in Singapore only.
The Court dismissed the claim filed in Israel. When parties reach a contractual agreement regarding foreign jurisdiction, the Court will uphold this agreement even where the claim includes arguments of criminal offenses, except under extraordinary circumstances that do not apply in this case. Cases in which the Court will not uphold a holding of a foreign jurisdiction are unusual and will occur when the foreign jurisdiction does not allow a just trial, e.g. due to racial discrimination, or where public interest demand managing the claim in Israel. The fact that different rules will apply in the foreign Court is not a reason to deviate from the parties’ intent under the agreement.