Commercial Litigation Lawyer in Israel
· By Adv. Reut Eliyahu, Advocate & Notary
Protecting your business interests before Israeli courts and arbitrators - commercial claims that go to trial, urgent injunctions and attachments, shareholder and partner disputes, and commercial arbitration. Every matter is handled personally by Adv. Reut Eliyahu.
Commercial litigation in Israel at a glance
Commercial litigation in Israel is the resolution of business disputes by an Israeli court or arbitrator - between companies, shareholders, partners, suppliers and customers. A commercial litigation lawyer assesses the case, seeks urgent relief such as a temporary injunction or attachment, and runs the claim or the arbitration to judgment or award. Claims of up to NIS 2,500,000 go to the Magistrates' Court and larger ones to the District Court; a closed list of company and securities matters goes to its Economic Department in Tel Aviv or Haifa. Eliyahu & Co. acts for Israeli and international businesses from Herzliya Pituach, in the Tel Aviv District.
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How is a business dispute resolved in an Israeli court?
By a claim in the Magistrates' or District Court, with interim relief where urgent, or by arbitration if the contract requires it - Civil Procedure Regulations, 5779-2018, and Arbitration Law, 5728-1968.
- Assessment and demand: the evidence, the forum and a formal demand.
- Interim relief: an injunction or attachment when delay would cause harm.
- Claim and trial: pleadings, evidence, cross-examination and summations.
- Judgment or award: then collection, an appeal or a challenge.
Every dispute turns on its own documents and facts. Schedule a consultation →
| Which court | Magistrates' Court up to NIS 2,500,000; District Court above that, and for dissolving a partnership (Courts Law, Section 51; Partnerships Ordinance, Section 46) |
|---|---|
| Economic Department | Tel Aviv (since December 2010) and Haifa (since 2018) only, for a closed list of company and securities matters (Section 42B, Courts Law); an ordinary contract claim between companies stays in the regular civil courts |
| Court fee, example | 2.5% of the claim in two halves: on a NIS 1,000,000 claim, NIS 12,500 on filing and NIS 12,500 no later than 20 days before the first evidentiary hearing (Regulation 6, Courts Regulations (Fees), 5767-2007) |
| Undertaking and guarantee | An applicant for interim relief signs a personal undertaking and gives a guarantee set by the court (Regulation 96) |
| Temporary injunction | Reliable prima facie evidence of a cause of action; the harm to each side; proportionality; good faith, including delay (Regulation 95) |
| Temporary attachment | A reasonable concern that, without it, enforcing the judgment will become difficult (Regulation 103) |
| Without notice | Possible in urgent cases; a hearing with both sides within 14 days (Regulation 97) |
| Oppression | A shareholder may apply to court; the court may make any order to remove or prevent the oppression, including a buy-out of shares (Section 191, Companies Law, 5759-1999) |
| Derivative claim | Written demand to the company, 45 days to respond (Section 194); court approval (Section 198) |
| Arbitration clause | On a request made no later than the party's first statement on the substance of the dispute, the court stays the lawsuit unless there is a special reason not to (Section 5, Arbitration Law, 5728-1968) |
| Arbitral award | Confirmed and enforced like a judgment (Section 23); set aside only on the grounds in Section 24, on an application filed within 45 days of the award (Section 27, Arbitration Law, 5728-1968) |
| International arbitration | International Commercial Arbitration Law, 5784-2024, based on the UNCITRAL Model Law; court applications are heard by the District Courts |
When a business dispute heads to court
Most business disagreements are settled by the people involved. Some are not: a partner takes control of the company's money, a supplier walks away from a project, a distributor keeps using your customer list, or a shareholder is shut out of decisions. At that point the question is no longer who is right, but which forum will decide it, how fast, and what can be secured before it does.
This page covers business disputes that are decided by an Israeli court or arbitrator - full commercial claims, urgent applications, shareholder and partner disputes, and arbitration. When the question is whether a single contract was breached or can be cancelled, see our contract disputes page. When someone simply owes you money, see debt recovery and money claims. Looking for a commercial lawyer to draft or review an agreement rather than to run a dispute? See commercial contracts in Israel.
Commercial Claims & Trials
Filing or defending claims between businesses in the Magistrates' and District Courts, through evidence, cross-examination and judgment.
Injunctions & Attachments
Urgent applications to stop harmful conduct or freeze assets while the main claim is pending.
Shareholder & Partner Disputes
Oppression claims, derivative claims, exclusion from management, withdrawal of company funds and dissolution of partnerships.
Commercial Arbitration
Representation before arbitrators, stays of court proceedings, and applications to confirm or set aside an award.
Since 2007
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How Commercial Litigation Works in Israel
A commercial claim follows the Civil Procedure Regulations, 5779-2018, in force since January 2021. The judge manages the case actively, and in a business case the documents filed with the claim usually set the course of the trial. These are the six stages most cases pass through.
Pre-Action Strategy
We review the documents and the evidence, decide on the forum (court or arbitration), check whether urgent interim relief is needed, and usually send a formal demand. Many disputes settle at this stage.
Filing the Statement of Claim
The claim is filed in the court with jurisdiction, with the documents it relies on. Half of the court fee (1.25% of a money claim) is paid on filing. The defendant has 60 days from service to file a statement of defence (Regulation 9).
Preliminary Hearing
In civil claims above NIS 40,000, with some exceptions, the parties first attend one MAHUT meeting - a free information meeting with a mediator (Regulation 37). At the preliminary hearing the court narrows the questions in dispute and sets dates for disclosure and evidence; in business cases this is often when settlement talks begin.
Discovery & Evidence
The parties disclose relevant documents and answer written questionnaires. The court decides whether witnesses give their main testimony orally or by written affidavit (Regulation 67), and expert opinions are submitted where the dispute needs them - an accountant, an engineer or a valuer.
Trial & Summations
Witnesses are cross-examined in court. The second half of the court fee is paid no later than 20 days before the first evidentiary hearing. Closing arguments (summations) are usually filed in writing.
Judgment & Enforcement
The court gives judgment and may award costs. An unpaid judgment is collected through the Execution Office, and a judgment can be appealed to the higher court within 60 days of its service (Regulation 137).
💡 Smaller claims of up to NIS 75,000 follow the shorter expedited procedure (Chapter 12 of the Regulations), and simple debts such as cheques are usually collected directly - see debt recovery and money claims.
Have a business dispute in Israel?
Speak directly with Adv. Reut Eliyahu. We look at your documents and tell you honestly where you stand.
Urgent relief: injunctions and temporary attachments
Some harm cannot wait for a judgment. A former partner is diverting customers, a counterparty is about to sell the only asset that could pay a judgment, or confidential information is being used by a competitor. Chapter 15 of the Civil Procedure Regulations, 5779-2018 lets the court act at the start of the case, before the main claim is decided.
Temporary injunction
An order to do or stop doing something until the claim is decided. The court requires reliable prima facie evidence of a cause of action and weighs the harm to each side, whether a lighter remedy would do, and the applicant's good faith, including any delay in applying (Regulation 95).
Temporary attachment
In a money claim, the court can freeze the defendant's assets, including money held by banks or customers. It does so when there is a reasonable concern that, without the attachment, enforcing the judgment will become difficult (Regulation 103).
Without notice, then a hearing
When notice to the other side would defeat the purpose, the court can grant the order without hearing it first. A hearing with both parties must then be held as soon as possible, and no later than 14 days after the order (Regulation 97).
Interim relief has conditions for the applicant. The applicant signs a personal undertaking and provides a guarantee set by the court, to compensate the other side if the order turns out to be unjustified (Regulation 96). For trade secrets, the main claim usually rests on Section 6 of the Commercial Torts Law, 5759-1999, which prohibits taking or using a trade secret without consent by improper means or in breach of a duty.
⚠️ In practice: the strength of an urgent application is decided by its affidavit and documents, and by how quickly it is filed. We prepare it so that it stands on its own at the first hearing - and we tell you honestly when the guarantee or the risk of costs outweighs what the order would protect.
The Israeli Court System for Commercial Cases
Israel has no separate system of commercial courts. Business disputes are heard by the ordinary civil courts, and the amount and subject of the claim decide where. The Economic Department hears a closed list of company and securities matters, such as many shareholder disputes and derivative claims; an ordinary claim between two companies for breach of a supply or service contract stays in the Magistrates' or District Court, however large. Choosing the right court at the start affects the fee and the timetable.
Magistrates' Court
Money claims of up to NIS 2,500,000 on the day of filing (Section 51 of the Courts Law). Many commercial, contract and debt claims are heard here.
District Court
Larger claims, partnership dissolution (Section 46, Partnerships Ordinance) and many Companies Law matters. It also hears appeals from the Magistrates' Court.
Supreme Court
Hears appeals from judgments the District Court gave as a first instance. When the District Court sat as an appeal court, a further appeal needs the Supreme Court's permission. Its rulings bind every lower court in Israel.
The Economic Department and commercial arbitration
For company disputes and for contracts with an arbitration clause, the case may go to a dedicated department of the District Court, or to an arbitrator.
The Economic Department
A specialised department of the District Court, operating in Tel Aviv since 2010 and in Haifa since 2018 (Sections 42A-42I of the Courts Law). It hears economic matters such as Companies Law and shareholder disputes, securities matters, and derivative and class actions in those fields.
The judges sit on these cases regularly, so a shareholder or director dispute is argued before a court that knows the corporate background well.
Commercial arbitration
When the contract sends disputes to arbitration and one side sues in court anyway, the other side can ask the court to stay the lawsuit. The request must be made no later than that party's first statement on the substance of the dispute (Section 5, Arbitration Law, 5728-1968).
An award confirmed by the court is enforced like a judgment (Section 23). It can be set aside only on the grounds listed in Section 24 - for example an invalid arbitration agreement, an arbitrator who acted beyond authority, no fair opportunity to present the case, or a conflict with public policy. A foreign award can be enforced in Israel under the New York Convention, which Israel ratified in 1959.
An international commercial arbitration seated in Israel is governed by the International Commercial Arbitration Law, 5784-2024, based on the UNCITRAL Model Law, and its court applications are heard by the District Courts.
Arbitration is private and can be faster, and the parties can choose an arbitrator who knows the industry. A court is often the better choice when urgent relief against third parties is needed, or when one side wants a precedent. Adv. Eliyahu is herself a registered arbitrator, and we weigh both routes with you in every consultation.
| Who decides | Court: a judge assigned by the court. Arbitration: an arbitrator the parties choose, often with industry knowledge |
|---|---|
| Privacy | Court: hearings and judgments are generally public. Arbitration: private |
| Appeal | Court: appeal to the higher court. Arbitration: no appeal on the merits unless the parties agreed on one - to an appellate arbitrator (Section 21A), or with leave to the court on a fundamental error of law (Section 29B); otherwise the award can only be set aside on the Section 24 grounds |
| Urgent relief | Court: injunctions and attachments, including orders that bind banks and other third parties. Arbitration: the court can grant the same interim relief in support of the arbitration, even before an arbitrator is appointed (Section 16) |
| Cost of the forum | Court: a court fee of 2.5% on a money claim. Arbitration: the parties pay the arbitrator's fees |
| Enforcement | Both: a judgment, or an award confirmed by the court (Section 23), is enforced through the Execution Office; a foreign award under the New York Convention |
Businesses in Israel and around the world
This page covers disputes decided in Israel, by the Israeli court or arbitrator that has jurisdiction. Where the client sits changes how we work together, not the legal service.
Clients in Israel
Companies, shareholders, partners and business owners in a dispute with a supplier, a customer, a competitor or a co-owner. We meet at our Herzliya Pituach office or on Zoom, and represent clients before the courts in Tel Aviv and across Israel. We explain each step in Hebrew or English before it happens.
Clients anywhere in the world
You are abroad; the other company, its assets or the business are in Israel. We run the case here, keep you updated in English at times that suit your time zone, and tell you at the start how to sign the power of attorney from where you are.
If the other side is in a country that has joined the Hague Service Convention (Israel joined in 1972), court papers can be served through it. A court may order a plaintiff with no assets in Israel to deposit security for costs (Regulation 157), so we plan for it before filing. If you already hold a foreign judgment against an Israeli party, our debt recovery page explains how it is declared enforceable here.
For US businesses: an Israeli commercial case is decided by a judge, with no jury and no US-style oral depositions, and the losing side is generally ordered to pay part of the winner's legal costs. The full comparison is on our civil litigation lawyer in Israel page.
Adv. Reut Eliyahu
Founder · LL.B & MBA · Licensed Notary · Registered Arbitrator · Israel Bar member since 2007
Adv. Reut Eliyahu leads Eliyahu & Co. Law Office in Herzliya Pituach, a law firm whose litigation practice covers civil, commercial and real estate disputes. Since 2007 she has represented businesses, shareholders and private clients in commercial claims, urgent applications, disputes between partners and cross-border cases.
Her MBA helps her read the financial side of a business dispute - the accounts, the valuation and what a settlement is really worth - and her training as a registered arbitrator shapes how she presents a case: what the decision-maker needs to see, and in what order. Clients work with her directly, from the first meeting to the end of the case. The firm serves clients in Israel and abroad in English, Hebrew and Spanish. About the firm →
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Frequently Asked Questions
Common questions from Israeli businesses and international companies about business disputes in Israeli courts and arbitration.
A business dispute is a decision, not only a case.
An honest assessment of your position, the right forum and a fee agreed in writing in advance, under Israeli law.
Sun-Thu 08:00-19:00 · Fri 08:00-13:00 (Israel time) · By phone or videoGet in Touch - Free First Consultation
Tell us about the dispute - who is involved, what is at stake and whether anything is urgent. We respond within one business day, to Israeli and international clients alike.
4 HaOgen St.
Herzliya Pituach, Israel
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Fri: 08:00 - 13:00
A business dispute in Israel? Let's look at it together.
Commercial claims, urgent injunctions and attachments, shareholder and partner disputes and arbitration, for businesses in Israel and abroad - handled personally by Adv. Reut Eliyahu. Free first consultation, no obligation.
Israel office Sun-Thu 08:00-19:00, Fri 08:00-13:00 · Herzliya Pituach, by Zoom or fully remote · Fees agreed in writing in advance