Foreign Judgment Enforcement in Israel:

Foreign judicial rulings and decisions issued by courts outside of Israel concerning civil matters or monetary compensation may be recognized and enforced in Israel, given that they meet the requirements set out under Israeli law, including authentication, translation, and service requirements where applicable. Once declared enforceable by an Israeli court, a foreign judgment carries the same legal force as a domestic Israeli judgment and may be executed accordingly. 

In this article, Michael Decker, an Israeli attorney, will explain the legal process of recognition and enforcement of foreign Court rulings in Israel.

This framework is governed primarily by the Israeli Foreign Judgments Enforcement Law, 5718 – 1958

What Are the Conditions for Enforcement of a Foreign Judgment In Israel?

A foreign judgment has no automatic legal validity in Israel. It must first undergo a judicial process before the Israeli courts. 

Under the Foreign Judgment Enforcement Law, an Israeli court may declare a foreign judgment enforceable only if all the following conditions are met:

1. The judgment must have been issued by a court that had jurisdiction under the law of the foreign state in which it was rendered.
2. The judgment is final and no longer subject to appeal or further proceedings in the foreign state.
3. The obligation imposed by the judgment must be enforceable under Israeli law governing the enforcement of judgments, and the judgment’s content does not contradict Israeli public policy.
4. The judgment must be valid and enforceable in the state in which it was rendered.

Additional Enforcement Rules:

In addition to the core conditions that must be met to recognize a foreign judgment, Israeli law includes several important procedures and policy-based limitations. 

Israeli law may require reciprocity or similar arrangements for the enforcement of foreign judgments in Israel. However, this requirement is flexible. Even where strict reciprocity is not clearly established, an Israeli court may still enforce a foreign judgment if the Attorney General requests it and the court agrees that enforcement is appropriate.

Also, a foreign judgment generally must be enforced within 5 years of its issuance. If this time period has passed, the court will usually not hear the application unless there is a special reason justifying the delay or if Israel and the foreign country have agreed to an alternate limitation period. 

Are There Defences That Can Be Made Against The Enforcement of a Foreign Judgment?

If a party is opposed to the enforcement of a foreign judgment in Israel, there are several defences available under the law that can be raised to prevent its recognition and execution. These defences may apply even where the foreign judgment satisfies all the general conditions for enforcement set out in the Foreign Judgments Enforcement Law, 5718–1958. 

According to the law, a foreign judgment will not be declared enforceable if it is proven to the court that:

1. The judgment was obtained by fraud. 
2. The defendant was not given a reasonable opportunity to present its case and evidence before the foreign court.
3. The judgment was issued by a court that lacked jurisdiction under the principles of private international law applicable in Israel.
4. The judgment contradicts another judgment issued by the same parties on the same matter, which remains in force.
5. At the time the foreign proceedings were initiated, there were already ongoing proceedings in Israel between the same parties regarding the same matter.

Limitation on Enforcement:

A foreign judgment will not be enforced in Israel if its enforcement may harm the sovereignty or security of the State of Israel. This gives Israeli courts discretion to refuse enforcement in exceptional cases involving national interests or public safety concerns.

How is an Enforceable Foreign Judgment Executed?

When a foreign judgment has been declared enforceable by an Israeli court, it is treated, for enforcement purposes, as if it were a judgment issued by an Israeli court. This allows the judgment to be executed through the Israeli enforcement system, including standard collection and enforcement procedures. 

Where a judgment orders payment in a foreign currency, Israeli law provides that the obligation may be discharged in Israel by payment in Israeli currency at the exchange rate applicable on the date of payment. However, the debtor may discharge the obligation by paying the amount in the original foreign currency, subject to applicable foreign currency control laws at the time.

Additionally, the Minister of Justice, with the approval of the Minister of Finance and the finance committee in the Knesset, shall issue regulations for the determination of exchange rates for the purposes of enforcing such judgments.  

Recognition of Foreign Judgments in Israel:

In addition to enforcement, Israeli law also provides for the recognition of foreign judgments in certain cases. Recognition means the judgment is accepted as valid in Israel and can be relied upon in court proceedings. 

Under the Foreign Judgments Enforcement Law, recognition will be granted where the following conditions are met:

1. There is an agreement between Israel and a foreign state that provides for the recognition of judgments of that type
2. Israel undertook that agreement to recognize such foreign judgments 
3. The undertaking only applies to foreign judgments enforceable under Israeli law 
4. The conditions of the agreement have been fulfilled

Even where no agreement applies, an Israeli court may still recognize a foreign judgment during proceedings if it considers it just and proper in the circumstances.

Technical Issues of Foreign Judgment Enforcement in Israel:

In addition to the legal requirements for recognition and enforcement, important technical and procedural issues may arise during enforcement, such as translation and service requirements.

Foreign judgments and supporting documents generally must be translated into Hebrew. The translation is typically required to be certified by an Israeli notary qualified in the relevant language. In addition, translated documents may also require Apostille certification or other forms of legalization to confirm their authenticity and admissibility for use before Israeli courts.

Also, when applying to enforce a foreign judgment in Israel, the defendant must be formally served with the court documents and is entitled to respond before enforcement is granted. After the application has been filed, the court typically allows about 30 days to complete service and submit proof of delivery.

In practice, service can be more difficult in cases involving debt, where the party may refuse to accept the documents or avoid receiving them altogether. In some cases, the foreign creditor may not even know where the party is located. Service is usually easier when dealing with a large company with offices and a clear address. In contrast, individuals or companies in financial difficulties may try to hide or be harder to locate. In such situations, the process may involve delivering the documents so the party is aware of the proceedings against them, and may also require additional steps, such as locating the party.

Contact Us:

It should be noted that foreign judgments may be enforceable in Israel, but must meet the strict requirements of the law. Therefore, we recommend that you obtain useful legal advice in advance, from a lawyer who will examine the nature and substance of the judgment. Feel free to contact us, as our law firm would be happy to assist you.