Mediation and Arbitration in Israeli Civil Law

In the realm of civil law disputes, there are various ways to resolve conflicts between parties aside from the traditional and familiar method of litigation through a judge in a courtroom. The most common alternative methods for dispute resolution in Israel are mediation and arbitration. But what are the differences between them, and what is important to know about each? In this article, written by Attorney Michael Decker, you will find a detailed explanation on dispute resolution through mediation and arbitration.

Our law firm provides clients with advice and representation in various branches of law such as tort law, commercial law, intellectual property, bankruptcy and insolvency, corporate law, and labor law.

Why Have Mediation and Arbitration Become So Popular?

The current backlog in Israeli courts is truly unbearable. Recent data published in various media outlets indicate an average of over 500 cases on the desk of each judge in Israel. However, the distribution is not even. Some judges have no less than 4,000 cases on their desks. Often, criminal and public law cases will take precedence over civil cases due to the workload and need for prioritization.

These statistics should concern every Israeli citizen. When an individual wants to claim compensation or seek some form of relief from the court, they may have to wait in a long queue for their case to be heard. In many cases, instead of waiting, individuals can turn to alternative dispute resolution procedures, which take place privately, primarily through arbitration or mediation.

What is Arbitration?

Arbitration is a kind of “private trial” conducted before one or more individuals, based on an agreement between the parties. It should be noted that the arbitrator is not always someone who is qualified as a judge or even as a lawyer. For example, in certain commercial sectors, it is customary to conduct arbitration before an expert in the relevant field. Generally, arbitration hearings are not public, and only the parties involved are exposed to them.

The Arbitration Law includes various paths for conducting arbitration. Some paths allow, under certain conditions, appeals against the arbitrator’s decision, either before another arbitrator or the court. This largely depends on the agreement drafted by the parties, so it is advisable for the agreement to be prepared by an experienced legal professional.

The parties can reach an arbitration agreement independently and seek a lawyer’s assistance for drafting it. However, courts often recommend parties to turn to arbitration for a quicker and more efficient resolution. Nevertheless, due to the high cost often associated with arbitration, this procedure is only suitable for some cases.

What is Mediation?

Unlike arbitration, mediation does not resemble a judicial process. The mediator’s role is to bring the parties to agreements that will resolve their conflict. However, the mediator cannot impose anything on the parties, and each party is free to act as they see fit. At any stage, the mediation process can be terminated, and if a judicial proceeding is ongoing in parallel, it can continue. This contrasts with arbitration, where the parties cannot leave the process or withdraw from their decision to conduct it in this manner. Additionally, a mediator is permitted to meet with each party individually, which is not allowed in arbitration cases. The content of mediation meetings remains confidential and cannot be used in court.

Pre-Mediation Meeting – When is it Mandatory to Meet with a Mediator in a Legal Proceeding?

In certain lawsuits, the parties are sent to an internal mediation meeting on behalf of the court before their case is heard. This mediation meeting is called a “pre-mediation meeting” (abbreviated as מהו״ת or MAHUT in Hebrew, which stands for Information, Familiarization, and Coordination). Currently, pre-meiating meetings are conducted experimentally in certain magistrates’ courts in central Israel and in specific types of civil claims. They are also common in proceedings before the Family Court.

Pre-meidation meetings are conducted by a mediator and are free of charge. Their purpose is to examine the possibility of continuing the discussion through mediation between the parties. If the parties agree to mediation, it will be conducted by the same mediator, but a fee will be charged to both parties. If not, the case will continue to be handled by the court.

Contact an Attorney from Our Office

At our law firm in Jerusalem and Tel Aviv, you will find attorneys with expertise in various civil law fields, including lawyers qualified as mediators. Our attorneys will be happy to assist you with any issue. For any legal questions regarding mediation or arbitration for dispute resolution, you can contact us via the phone numbers or email address listed below.

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03-3724722

055-9781688

office@lawoffice.org.il