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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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Commercial litigation lawyer in Israel - Eliyahu & Co. Law Office, Herzliya Pituach

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.

  1. Assessment and demand: the evidence, the forum and a formal demand.
  2. Interim relief: an injunction or attachment when delay would cause harm.
  3. Claim and trial: pleadings, evidence, cross-examination and summations.
  4. Judgment or award: then collection, an appeal or a challenge.

Every dispute turns on its own documents and facts. Schedule a consultation →

Commercial litigation in Israel: key facts
Which courtMagistrates' 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 DepartmentTel 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, example2.5% 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 guaranteeAn applicant for interim relief signs a personal undertaking and gives a guarantee set by the court (Regulation 96)
Temporary injunctionReliable prima facie evidence of a cause of action; the harm to each side; proportionality; good faith, including delay (Regulation 95)
Temporary attachmentA reasonable concern that, without it, enforcing the judgment will become difficult (Regulation 103)
Without noticePossible in urgent cases; a hearing with both sides within 14 days (Regulation 97)
OppressionA 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 claimWritten demand to the company, 45 days to respond (Section 194); court approval (Section 198)
Arbitration clauseOn 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 awardConfirmed 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 arbitrationInternational Commercial Arbitration Law, 5784-2024, based on the UNCITRAL Model Law; court applications are heard by the District Courts
Commercial Law · Dispute Resolution

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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The Process

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.

1

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.

2

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).

3

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.

4

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.

5

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.

6

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.

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Interim Relief

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.

Shareholders & Partners

Shareholder and partner disputes in court

Disputes between the owners of a business are often the hardest: the parties still share a company, a bank account and sometimes a family. The Companies Law, 5759-1999 gives a shareholder two main routes, and the Partnerships Ordinance gives a partner a way out.

Oppression

When the company's affairs are run in a way that oppresses a shareholder - shutting the shareholder out of decisions, diluting the holding or diverting profits - the shareholder may apply to the court. The court can make any order to remove or prevent the oppression, including directions on how the company is run and an order to buy the shares (Section 191).

Derivative claim

When the harm is to the company itself, a shareholder or director can sue in the company's name. A written demand to the company comes first, and the company has 45 days to respond (Section 194). The claim goes ahead only if the court approves it, and the court does so only if, on the face of it, the claim is in the company's interest and the claimant is acting in good faith (Section 198).

Dissolving a partnership

A partner may ask the court to dissolve the partnership on grounds such as another partner's misconduct or persistent breach, a business that can only run at a loss, or any reason that makes dissolution just and equitable (Section 45, Partnerships Ordinance [New Version], 5735-1975).

A shareholder dispute, step by step

  1. Collect the documents: the articles of association, any shareholders' agreement, minutes, bank statements and the correspondence between the owners.
  2. Protect the money first: if funds or assets are leaving the company, ask the court for a temporary injunction or attachment (Regulations 95 and 103).
  3. Choose the route: an oppression application when you are harmed as a shareholder (Section 191); a derivative claim when the company itself is harmed, starting with a written demand and 45 days for the company to respond (Section 194).
  4. Value the shares: in a buy-out, the price of the holding is often the real issue - and the court itself can order a buy-out (Section 191).
From our practice

Two partners owned an Israeli company: one lived in Argentina, the other in Israel. The partner in Israel withdrew company funds without authorisation. We filed the claim, and the case ended with a share purchase agreement that separated the partners.

Every case turns on its own facts. This case does not predict the outcome of another.

Many owners' disputes are settled by a buy-out once both sides see the documents and the likely outcome. A well-drafted shareholders' agreement prevents many of them in the first place - see our ongoing legal counsel for companies and the corporate and business law practice.

Israeli Court System

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.

Economic Department · Arbitration

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.

Court or arbitration: the main differences
Who decidesCourt: a judge assigned by the court. Arbitration: an arbitrator the parties choose, often with industry knowledge
PrivacyCourt: hearings and judgments are generally public. Arbitration: private
AppealCourt: 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 reliefCourt: 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 forumCourt: a court fee of 2.5% on a money claim. Arbitration: the parties pay the arbitrator's fees
EnforcementBoth: 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
Our Clients

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.

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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.

Call our US line, +1 (310) 735-4210 →

About the Attorney
Adv. Reut Eliyahu, commercial and civil litigation lawyer in Israel, Eliyahu & Co. Law Office, Herzliya Pituach

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 →

⚖️ Israel Bar Association 🎓 LL.B & MBA 🏛️ Licensed Notary 📝 Registered Arbitrator
Client Reviews

What Our Clients Say

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Reviews from the firm's clients

Reviews are written by the firm's clients on its Google Business Profile.

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FAQ

Frequently Asked Questions

Common questions from Israeli businesses and international companies about business disputes in Israeli courts and arbitration.

A commercial litigation lawyer represents a business, a shareholder or a partner when a business dispute has to be decided by an Israeli court or an arbitrator. The work includes assessing the case, seeking urgent interim relief, filing or defending the claim, leading the evidence and cross-examination, and handling the judgment or award that follows. Complex cases often combine several of these at once, such as an injunction, a shareholder claim and a contract claim against the same party.
Two first-instance courts share commercial cases by amount: the Magistrates' Court hears money claims of up to NIS 2,500,000 on the day of filing, and the District Court hears larger ones (Section 51 of the Courts Law [Consolidated Version], 5744-1984). Company and securities matters listed in the Courts Law, such as many shareholder disputes and derivative claims, go to the Economic Department of the District Court in Tel Aviv or Haifa; an ordinary contract claim between companies does not. An arbitration clause in the contract can take the case out of court altogether.
Urgent applications move in days: an order given without notice must be followed by a hearing with both sides within 14 days (Regulation 97). A defence is due 60 days after service (Regulation 9), and a derivative claim starts with a 45-day demand period (Section 194 of the Companies Law). A full trial takes longer: Courts Administration data puts an ordinary civil case at about 20 months on average in the District Court and about 11 months in the Magistrates' Court, and cases with experts and many witnesses tend to take longer. Many settle after the MAHUT meeting or the preliminary hearing. At the first meeting we set out the likely timetable for your case.
The cost of a commercial case comes in three parts. The court fee is 2.5% of the amount claimed, paid half on filing and half no later than 20 days before the first evidentiary hearing: on a NIS 1,000,000 claim, NIS 12,500 at each stage, so a case that settles early usually saves the second half (Regulation 6, Courts Regulations (Fees), 5767-2007). An application for an injunction or attachment also needs a guarantee set by the court (Regulation 96), and business cases often need an accountant's or a valuer's opinion. Our own fee depends on what the case needs - an urgent application, a full trial or an arbitration - and is agreed in writing before work begins.
Yes. Under Regulation 95 of the Civil Procedure Regulations, 5779-2018, the court may grant a temporary injunction if there is reliable prima facie evidence of a cause of action, weighing the harm to each side, proportionality and the applicant's good faith, including any delay. The applicant gives a personal undertaking and a guarantee to cover the other side's damage if the injunction proves unjustified (Regulation 96).
A temporary attachment freezes the defendant's assets, including money held by banks or customers, until the claim is decided. Under Regulation 103 of the Civil Procedure Regulations, 5779-2018, it is available in a money claim when there is a reasonable concern that, without it, enforcing the judgment will become difficult. In urgent cases it can be granted without notice to the other side, with a hearing in the presence of both parties within 14 days (Regulation 97).
Under Section 191 of the Companies Law, 5759-1999, a shareholder may apply to the court when the company's affairs are conducted in a way that oppresses that shareholder. The court can make any order to remove or prevent the oppression, including directions on how the company is run in the future and an order that the shareholder's shares be bought.
A derivative claim is a claim a shareholder or director brings in the company's name, for example against a director who caused the company a loss. The claimant first makes a written demand to the company, which has 45 days to respond, unless the demand can be skipped (Section 194 of the Companies Law, 5759-1999). The claim goes ahead only if the court approves it, and the court does so only if, on the face of it, the claim is in the company's interest and the claimant is acting in good faith (Section 198).
A partner may apply to the court to dissolve the partnership on the grounds listed in Section 45 of the Partnerships Ordinance [New Version], 5735-1975, among them another partner's misconduct or persistent breach of the partnership agreement, a business that can only be carried on at a loss, or any reason that makes dissolution just and equitable. The application is heard by the District Court (Section 46), which may also wind up the partnership's affairs and appoint a liquidator (Section 47).
It is a specialised department of the District Court for economic matters, operating in Tel Aviv since 2010 and in Haifa since 2018, under Sections 42A-42I of the Courts Law. It hears matters such as Companies Law and shareholder disputes, securities matters, and derivative and class actions in those fields, before judges who sit on these cases regularly.
As a rule, yes, if the contract contains an arbitration clause. Under Section 5 of the Arbitration Law, 5728-1968, the court will stay a lawsuit on the request of a party who is ready to arbitrate, provided the request is made no later than the party's first statement on the substance of the dispute. The court may refuse for a special reason.
Yes, but only on the grounds listed in Section 24 of the Arbitration Law, 5728-1968, such as an invalid arbitration agreement, an arbitrator who acted without or beyond authority, a party who was not given a fair opportunity to present its case, or an award contrary to public policy. The application must be filed within 45 days of the award (Section 27). A court is not a second instance on the merits, unless the parties agreed on an appeal. An award confirmed by the court is enforced like a judgment (Section 23).
No. A claim can be filed directly. After the defence is filed, the parties in civil claims above NIS 40,000, with some exceptions, must attend one free MAHUT meeting (an initial information and coordination meeting) with a mediator, under Regulation 37 of the Civil Procedure Regulations, 5779-2018. Attendance is compulsory, but going on to mediation is voluntary.
Yes. If the dispute belongs in an Israeli court or arbitration, you do not need to move here for it: we run the case in Israel, including any urgent application, while you remain abroad. 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, and the court may order a plaintiff with no assets in Israel to deposit security for the defendant's costs. We tell you at the start how to sign the power of attorney from where you are.

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.

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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.

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Herzliya Pituach, Israel

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