THE ARBITRATION LAW 1968 THE ARBITRATION LAW 1968 CHAPTER I: INTERPRETATION Definitions (1974 amendment) 1. In the matter of this law – "Arbitration agreement" – a written agreement to be submitted for the arbitration of a dispute that has arisen or may arise in future between the sides to an agreement, whether the name of the arbitrator appears in the agreement or not; "Arbitrator" – a person designated to arbitrate in or in accordance with an arbitration agreement, including the decisive arbitrator and the substitute arbitrator; "Arbitration Award" – An Award determined by the arbitrator, including an interim Award; "Foreign arbitration Award" – an arbitration …
משרדנו מתמחה בייצוג לקוחות בהליכי בוררות עסקית, בינ"ל ובענף הבניה. עיון בפסקי הדין הניתנים בבתי המשפט בנוגע להליכי בוררות מלמד עד כמה הבנה מעמיקה בדיני בוררות מכריעה את הכף ולא די בהבנת התחום העסקי, תחום ליקויי הבניה, סכסוך שותפים, הפצה או סוכנות וכיו"ב. הדבר נכון גם כאשר מדובר בבוררות בינלאומית בה הבנת כללי בית הדין לבוררות כדוגמת אלה של ה – ICC אשר יצאו במהדורה חדשה בשנת 2012 או של ה – LCIA תכריע את סיכויי התיק, לעיתים במידה גדולה יותר מאשר הדיון בתחום המסחרי בו חלוקות דעות הצדדים.
THE ARBITRATION LAW 1968
CHAPTER I: INTERPRETATION
Definitions (1974 amendment)
1. In the matter of this law –
"Arbitration agreement" – a written agreement to be submitted for the arbitration of a dispute that has arisen or may arise in future between the sides to an agreement, whether the name of the arbitrator appears in the agreement or not;
"Arbitrator" – a person designated to arbitrate in or in accordance with an arbitration agreement, including the decisive arbitrator and the substitute arbitrator;
"Arbitration Award" – An Award determined by the arbitrator, including an interim Award;
"Foreign arbitration Award" – an arbitration Award given outside of the State of Israel;
"Court" – with the exception of paragraphs 5 and 6, this refers to the district court.
CHAPTER II: THE ARBITRATION AGREEMENT
2. An Arbitration Agreement is deemed to include all the instructions in the first addendum, as long as they are relevant to the issues and do not contradict the intentions of the agreement itself.
Limits of the agreement
3. An Arbitration Agreement is not applicable to issues that cannot serve as part of the agreement between the parties.
Substitute parties and arbitrators
4. The powers of an Arbitration Agreement and the authority of the Arbitrator extend also to the substitutes of the parties to this agreement and to the substitute Arbitrator, as long as this does not contradict the intentions of the agreement itself.
Procedural delays in court
5 (a) In a case where a complaint has been filed in the court about a dispute regarding which it was agreed to go to arbitration, and a litigant party to this Arbitration Agreement has requested a delay in processing that complaint, the court will delay the trial between the parties to this agreement, if and only if the appellant is knowingly prepared to do all that is required to implement the arbitration and all that follows it.
(b) A request to delay procedures should be submitted either in the defense brief or in some other written form, but must be submitted no later than the same day on which the appellant made the first relevant request.
(c) The court is entitled to refuse to delay processing, if the court sees a special reason why this dispute should not be resolved via arbitration.
Procedural delays in accordance with international treaties
6. In a case where a complaint has been filed in the court about a dispute, regarding which it was agreed to go to arbitration, and there is an international treaty that has been accepted by the State of Israel which applies, and that treaty has instructions regarding procedural delays, the Court will use its authority in accordance with paragraph 5, as per and subject to those instructions.
Relief from expiration of rights
7 (a) In a case where an agreement between parties has determined the start of an arbitration procedure or its conclusion by the end of a certain period of time as being preconditions to insure equity between them, and the sides remain conflicted, the Court is entitled, if it sees fit, to extend that pre-designated period, even belatedly, under the right conditions.
(b) If the Court has decided that a dispute shall not to go to arbitration, whether in accordance with paragraphs 5 or 6, or paragraph 12b, all stipulations in the agreement between the parties regarding the start of an arbitration procedure or its conclusion being preconditions to insure equity between them are nullified.
CHAPTER III: APPOINTMENT/REMOVAL OF AN ARBITRATOR
Court appointment of an Arbitrator
8 (a) In a case where a dispute arises on an issue in which it was agreed to go to arbitration and no Arbitrator has been appointed in accordance with the agreement, the court is entitled, as per a request by a litigant, to appoint an Arbitrator; the Court is entitled to do so whether the Arbitrator was meant to be appointed by one or all of the litigants, or whether that appointment should have been made by Arbitrators appointed by a third party.
(b). The Court will not appoint an Arbitrator, as stated in sub-paragraph (a), unless the appellant has previously given his/her litigator a written notice re. the above, which was not met within 7 days of its being submitted:
(1) When the agreement stipulates that each party will appoint an Arbitrator, the appellant will name his/her appointed Arbitrator in that notice and demand that the litigator also appoint his/her own Arbitrator;
(2) In any other case, the appellant will request an Arbitrator in that notice and demand that the litigator agree to his/her appointment.
(c) In a case the Arbitration Agreement states that each party will appoint an Arbitrator, the Court is entitled to appoint either the same or another Arbitrator as the sole Arbitrator, as per the request of the party that has appointed an Arbitrator.
Appointment of a sole Arbitrator by the Court
9. In a case an additional Arbitrator or a decisive Arbitrator has been appointed, whether in accordance with the Arbitration Agreement or by the Court, after receiving a request from a litigant and despite the contents of the Arbitration Agreement, the Court might appoint him/her as the sole Arbitrator, if the Court sees fit to do so in order to implement or to terminate the arbitration process.
Status of a court-appointed Arbitrator
10. The same laws apply to an Arbitrator or a sole Arbitrator who has been appointed by the Court as to an Arbitrator appointed by the parties to an Arbitration Agreement.
Removal of an Arbitrator from his/her position
11. The Court is entitled to remove an Arbitrator from his/her position in the following cases:
(1) The Arbitrator is found to be unworthy of the parties' trust;
(2) The behavior of the Arbitrator during the arbitration process causes delay of justice;
(3) The Arbitrator is unable to fulfill his/her duties.
Appointment of a substitute Arbitrator
12 (a) In a case where an Arbitrator's position is vacant, either due to his/her resignation or death, or removal from the position, the instructions from paragraphs 8 to 10 apply until the appointment of the replacement, as long as this does not contradict the intentions of the agreement itself.
(b) In a case an Arbitrator is removed from his/her position, the Court is entitled to decide, if it sees fit, not to appoint a substitute Arbitrator, because the dispute should not be settled via arbitration.
CHAPTER IV: THE ARBITRATION PROCEDURE Calling witnesses
13 (a) During the arbitration process, the Arbitrator has the authority to summon witnesses to testify or to submit documents, just as in court during a lawsuit, and he/she can rule regarding their pay and expenses.
(b) A witness in an arbitration process has the same rights and immunities as those of a witness in court.
(c) Until called by the Arbitrator, the Court, as per the witness's request, is entitled to cancel that invitation, if the Court feels that this is in abuse of the arbitration process.
Means of taking testimony
14. The testimony of a witnesses, including the testimony of the litigants, must be taken under oath or by word-of-honor, unless the Arbitrator and litigants have agreed to accept testimony given not under oath or by word-of-honor, as long as the witness is not required to testify under oath in instances during which the court would not require him/her to do so.
Sessions in which a litigant is absent
15 (a) In a case where a litigant who has been invited to a certain session did not appear, the Arbitrator is entitled to discuss the dispute at that session in his/her absence; a litigant is required to present his/her case at the appointed time, and if he/she does not do so, the Arbitrator may rule on the dispute in his/her absence.
(b) An Arbitration Award, given after a session in which a litigant was absent and his/her claims were not presented, may be revoked or renewed by the Arbitrator, if that litigant files such a request before the arbitrator within the 30-day period following receipt of that Arbitration Award, providing that the Arbitrator is convinced that the litigant's absence or non-presentation of his/her party's claims was justified.
Ancillary authority of the Court
16 (a) In the following matters, the Court has been given ancillary authority regarding arbitration to relieve the complaint brought before it:
(1) Calling witnesses, Award on their pay and expenses;
(2) Implementing enforcement and punishing witnesses who refuse to answer the Arbitrator's or Court's summons to appear, or refuse to testify;
(3) Taking testimony immediately or from outside the jurisdiction;
(4) Replacing discovery of the notices or documents of the litigants;
(5) Foreclosure on property, restraining a person from leaving the country, requiring guarantees for discovery of property, appointing an official receiver, issuing do and don't do orders.
(b) Requests for relief based on this paragraph may be submitted by litigants or by the Arbitrator; in cases an Arbitrator has not yet been appointed, a litigant is entitled to submit a request after giving the other litigant notice, as stated in paragraph 8(b).
(c) In the matter of sub-paragraph (a), Arbitrator appointment or the submission of a notice abide by the same laws as when filing a lawsuit in court.
(d) The instructions in this paragraph are not intended to lessen the authority of the Arbitrator either within the Arbitration Agreement or in accordance with this law.
Extension of temporary relief
17 (a) Relief provided according to paragraph 16a(5) remains valid, as long as the Court does not revoke it and until the rendering of an Arbitration Award, and the Arbitrator might offer all or part of it in his/her Arbitration Award as ultimate relief.
(b) Decisions made by an Arbitrator, by sub-paragraph (a), baring an appeal, are legally valid, on par with decisions made by the Court.
Turning to the Court does not delay the session
18. When a request regarding arbitration is submitted to the Court, whether by a litigant or an Arbitrator, this, per se, does not justify delaying the arbitration process, unless the Court or the Arbitrator have so instructed.
Extending the allotted periods for the arbitrator's activities
19 (a) In cases where the period allotted to reach an Arbitration Award or for the Arbitrator's activities has been predetermined either in the Arbitration Agreement or in this law, the Court is entitled to occasionally extend and re-determine that period, as requested either by a litigant or by an Arbitrator, even if the initial period has lapsed.
(b) When calculating the time-period, mentioned in sub-paragraph (a), the amount of time the arbitration process was delayed, according to paragraphs 18 or 33, will not be taken into account.
CHAPTER V: THE ARBITRATION AWARD
Arbitration Award Form
20. An Arbitration Award must be written and signed with the date of signature; in an arbitration including some Arbitrators, it is sufficient that most of them sign, as long as the Arbitration Award stipulates that the others were either unable or unwilling to sign it.
21. In keeping with paragraphs 24-28, and as long as this does not contradict the intentions of the agreement itself, an Arbitration Award is binding on the litigants and their substitutes, just like a court verdict.
An appeal in the presence of an arbitrator
21A. If the parties to an arbitration agreement have stated that the Award will be appealed in the presence of an arbitrator;
1. The arbitrator shall state the reasons upon which the Award was based on.
2. The second addendum provisions shall be applied, additionally to the first addendum, as long as they don't contradict the second addendum provisions, unless the parties have decided differently.
(a) Those law provisions, which shall be applicable by the arbitrator, for the arbitration process and for the Award, should be applied respectively for the appellate arbitrator and the appellate Award, only if the Award, as defined "The arbitration Award", shall be the appellate Award, or the first level Award; if no appeal process has been filed, or when the date for that has expired.
(b) The parties have decided as stated in paragraph A:
1. A request for setting the Award aside shall be submitted in accordance with Articles 24(9) and 24(10) exclusively.
2. Submitting a request for appeal about the Award in leave of the court is prohibited.
Arbitration Award Amendment
22 (a) Following a litigant's request and after the other litigants have had sufficient chance to state their claims, an Arbitrator is entitled to amend or complete an Arbitration Award, if it had any of the following flaws:
(1) The Award had scribal or typographical errors, omissions, or mistakes in: the description of a person or asset, the date, numbers, calculations, an so forth;
(2) The Award is flawed in matters not relevant to the disputed issues;
(3) The Award does not include instructions on the payment of interest;
(4) The Award does not include instructions regarding the expenses of the parties, including lawyer's fees.
(b) In accordance with sub-paragraphs (a)(3) or (4), an Arbitrator is not obligated to consider appeals presented to him/her 30 days after the Arbitration Award is personally given to the appellant or from the day a copy of the Award is given to the appellant not in the presence of the Arbitrator.
(c) In accordance with this paragraph, an Arbitrator must decide regarding such appeals within 30 days from the day the other litigants are informed of it.
(d) The Court is entitled to amend flaws, as listed in sub-paragraphs (a)(1) or (2) while studying the request to ratify or nullify the Award, whether there was no appeal to the Arbitrator or there was an appeal to the Arbitrator, but he/she had not yet reached a decision.
Arbitration Award Ratification
23 (a) The Court is entitled to ratify an Arbitration Award, as requested by a litigant. With the ratification of an Arbitration Award, with the exception of appeals, it has the same legal standing as a legal verdict of the Court.
(b) The Court is not compelled to consider objections to the ratification of an Arbitration Award, unless a request is submitted for its nullification, or along an appeal process according to article 29B.
Arbitration Award Nullification
24. Following a legal "request for nullification" submitted by a litigant, the Court is entitled to nullify an Arbitration Award, entirely or in part, or to complete it, amend it, or to return it to the Arbitrator, for any one of the following reasons:
(1) There was no valid Arbitration Agreement;
(2) The Arbitration Award was given by an illegally appointed Arbitrator;
(3) The Arbitrator acted without authority or exceeded his/her authority, as per the Arbitration Agreement;
(4) The litigants were not given sufficient opportunity to make their cases or to produce their evidence;
(5) The Arbitrator did not settle one of the issues put before him/her for resolution;
(6) The Arbitration Agreement stipulated that the Arbitrator must provide the rationale behind his/her Award, and did not do so;
(7) The Arbitration Agreement stipulated that the Arbitrator must rule in accordance with the law, and he/she did not do so;
(8) The Arbitration Award was submitted after its allotted deadline;
(9) The contents of the Arbitration Award is contrary to public legislation;
(10) Just cause exists, in light of which the court must nullify the Arbitration Award, with no possibility of appeal.
Returning the Arbitration Award to the Arbitrator
25. In cases where the Court deems it necessary to return the Arbitration Award to the Arbitrator, the Arbitrator has up to 3 months from the date of the Court's decision to reach an amended Award, unless instructed otherwise by the Court.
Limitations on nullifying a Award
26 (a) The Court might defer a request for nullification, despite the existence of a cause, as mentioned in paragraph 24, as long as the Court is convinced that no miscarriage of justice will result.
(b) The Court does not nullify an entire Arbitration Award if it is sufficient to nullify only certain parts of it, if it can be completed, amended, or returned to the Arbitrator.
(c) No litigant may put a complaint before the Court that the Arbitration Award was made after its deadline, unless that litigant has a written copy of a notice that he/she had submitted to the Arbitrator before the Arbitration Award was given, stating the litigant's right to make such a claim.
The time to enter a nullification request (1974 amendment)
27 (a) The Court is not compelled to consider nullification requests submitted more than 45 days after the Award was made, if the appellant heard the Award in person, or from the day he/she was given a written copy, either by the Arbitrator, or by the litigant, or not in person; the Court is entitled to extend that period, even belatedly, due to special considerations that must be recorded, and in all cases in which a request to ratify an External Arbitration Award was submitted.
(b) In cases referred to an Arbitrator in accordance with paragraph 22, the 45-day period begins on the day the Arbitrator rules or must make his/her final decision regarding the appeal; in nullification requests based on a cause, as stated in paragraph 24(10)—this period begins on the day the basic, relevant facts come to light.
(c) The Court is not compelled to consider nullification requests submitted after the Arbitration Award has been ratified.
(d) The deadlines stated in sub-paragraph (a) are not valid in cases of cause, as described in paragraph 24(1), and instructions in sub-paragraph (c) do not apply to nullification requests due to cause, as in paragraph 24(10).
Nullification requests and ratification of Arbitration Award
28. In cases where a nullification request was submitted but denied, or when an appeal on the Award according to article 29B was denied, the Court will ratify the Arbitration Award, even if no request for ratification was submitted. In cases where a nullification, or an appeal request were submitted but denied in part, or the Arbitration Award was completed or amended by the Court following its discussion, the Court will then ratify the revised Award, assuming it has not been nullified, in its completed or amended version.
Foreclosure orders etc.
29 (a) Once a request has been submitted to ratify or nullify an Arbitration Award, the Court might order regarding the defendant in the Award–to seize his/her property, to block his/her right to leave the country, or to require that he/she guarantee the fulfillment of the Arbitration Award; this request can be verbal, and the Court may release the defendant from posting a bond.
(b) The instructions in all legislation in matters of temporary foreclosure, restricting exit permits, and the posting of bonds apply to relief, according to this paragraph, with the necessary changes.
Foreign Arbitration Awards (1974 amendment)
29A (a) A request to ratify or nullify a foreign Arbitration Award which comes under an international treaty, in which the State of Israel is a party, and that treaty has already established the relevant instructions, can be submitted and judged in light of/and in accordance with those instructions.
Appeal on the Award in leave of the court
29B. (a) Parties to an arbitration agreement, who have stipulated that the arbitrator shall decide in accordance with the substantial law, may agree that the Award is appealable, in the court's leave; whereas a fundamental mistake has occurred in the implementation of law which could cause a miscarriage of justice; an appeal, as stated, will be decided by one judge and shall be implemented in accordance with the court's appeal provisions.
(b) The parties to an arbitration agreement have decided that the award is appealable in the presence of court as stated in paragraph (a), the arbitration sessions shall be documented in protocol and the arbitrator shall state the reasons upon which the Award is based on.
(c) The appeal about the Award was submitted to the court, it shall not require a request for setting the Award aside and the parties shall raise their claims on setting the Award aside in accordance with any of the articles of 24 law provision throughout the appeal process.
CHAPTER VI: THE ARBITRATOR'S RESPONSIBILITIES & WAGES The arbitrator's responsibilities
30. An Arbitrator who accepts a position must act only in the best interests of his/her litigants; if an Arbitrator has abused his/her office or his/her clients' trust, any party who has been hurt is entitled to damages for breach of contract, in addition to those remedies provided by the law.
31 (a) The litigants must pay their arbitrator wages and expenses (the aforementioned together forming – "fees"), in the sums, quantities, and at the times determined by the Arbitrator, providing that there is no other proviso in the Arbitration Agreement itself.
(b) Litigants are entitled to pay the Arbitrator additional sums owed to him/her by other litigants, and, having done so, may at any time demand a refund of these sums from that other remiss litigant.
Reduction of the Arbitrator's fee
32 (a) The Court is entitled, as per a litigant's request, to reduce the fees established by an Arbitrator, when it is unacceptable to the litigants and the Court agrees that the sum is excessive, and, in light of this, the Court may also order that sums already paid to that Arbitrator be refunded to his/her litigants, providing that there is no other proviso in the Arbitration Agreement itself.
(b) The Court is not compelled to consider fee reduction requests submitted before the Arbitration Award has been given nor after the period indicated in paragraph 27(a).
The right to delay
33 (a) In cases where the Arbitrator has not been paid his/her fees, in whole or in part, on time, he/she may delay either the continuation of the arbitration sessions or the giving or submission of the Arbitration Award until the overdue sum has been paid.
(b) If an Arbitrator has done the aforementioned in sub-paragraph (a) in regard to his/her fees that a litigant has claimed is excessive, the Court, as per a litigant's request, may instruct the Arbitrator to continue the sessions or to pronounce or submit the Arbitration Award, as deemed fit, as long as that fee, in whole or part, is either entrusted to the Court or the appellant guarantees its later payment.
The fees of an Arbitrator who has been removed from his/her position
34. In a case of an Arbitrator who has been removed from his/her position, the Court might, as per a litigant's request, to determine whether that Arbitrator is entitled to all or part of his/her fees or not, and thus, the Court is also entitled to order the refund of sums already paid to the Arbitrator's account.
Arbitrator and litigants status
35. In accordance with a request submitted by one of the litigants, as per paragraphs 32, 33(b) or 34, the Arbitrator becomes a respondent and the other litigants are given a suitable opportunity to make their claims.
CHAPTER VII: VARIOUS INSTRUCTIONS
36. In regard to this law, common law is like basic law, except that the legal instructions to amend the process of civil law (the State being a litigant), 1958, apply to all cases or arbitration in which the State is a party.
The authority of the registrar
37. The authority granted to the Court in accordance with this law also extends to the Court registrar in the following matters:
(1) All the certified responsibilities of the registrar he/she would have if the arbitration case was a case brought before the court;
(2) Arbitrator's appointment;
(3) The extension of deadlines, as per the law;
(4) Ratification of Arbitration Award or issuing an order in accordance with paragraph 29, when there is no request to vacate such an order.
38. A decision made by a Court in accordance with this law may be appealed, as per paragraph 19(b) of the Law of the Courts, 1957; a decision given by a registrar in accordance with this law may be appealed, as per paragraphs 8(b) and (d) of the Registrar's Order, 1936.
Preservation of rights and obligations
39. None of the instructions in this law are meant to prevent the submission of a lawsuit to the Court, in accordance with the rights and obligations established in a legal Arbitration Award or as determined on the basis of a verbal agreement.
Preservation of laws (1974 amendment)
39 (a) None of the instructions in this law are meant to prevent the delaying of judicial process, or the ratification or nullification of an Arbitration Award or any other legal process, whether it applies to foreign arbitration or a foreign Arbitration Award, not bound by a treaty, as noted in paragraphs 6 or 29(a), or the treaty does not include relevant instructions.
40. The Mandatory Arbitration Regulation has been nullified.
Application and the transition order
41. This law went into effect on the 11th of Tevet, 5729 (Jan. 1, 1969); however, any arbitration process, which had begun before the law went into effect, whether by means of a litigant's notice to someone that he/she is required to appoint an Arbitrator or to agree to one's appointment, or by means of notice given to an arbitrator requiring that he/she begin to deal with a dispute—remains subject to the prior law.
Execution and regulations (1974 amendment)
42. The Minister of Justice is responsible for the execution of this law and is entitled to enact regulations regarding due process, when this is necessary in order to uphold the treaty, as stated in paragraphs 6 or 29(a).
Arbitration will be sought before a sole Arbitrator, as long as a larger number of Arbitrators has not been predetermined.
In cases brought before an even number of Arbitrators, the Arbitrators will appoint an additional Arbitrator, as per the request of one of the Arbitrators; if an additional Arbitrator is appointed, he/she will serve as the chairperson of the arbitration.
In cases brought before an odd number of Arbitrators, the Arbitrators will appoint a chairperson from amongst themselves.
The Chair-Arbitrator is entitled to choose the location of the arbitration sessions and their times and to make all decisions regarding the organization of those arbitration meetings.
Arbitration decisions and the Arbitration Award are accepted by a majority vote; if the vote is tied, the chair-arbitrator is the tiebreaker; Arbitrators holding the minority opinion are entitled to express their dissenting opinions in the Arbitration Award.
In cases where an additional, tie-breaking Arbitrator has been appointed, he/she will take office after the other Arbitrators, or one of them, have/has informed the litigants and the incoming Arbitrator in writing that the final Arbitration Award does not have majority support, and that once the additional Arbitrator takes office, he/she replaces all the other Arbitrators.
Once the additional, substitute or tie-breaking Arbitrator has taken office, the arbitration process will continue from the stage it had reached before the appointment, unless the incoming Arbitrator demanded some other action.
This Arbitrator is entitled to instruct the litigants to respond to questionnaires, to produce and show documents, and to do anything relevant to the arbitration process, just as the Court can require in lawsuits brought before it.
If this Arbitrator has ordered a litigant to do something related to the arbitration process and, for no justifiable reason, the litigant has not complied with that order, after warning that litigant the Arbitrator is entitled to defer the suit, if an order has been issued against a prosecutor, or to vacate the defense and to settle the dispute as if the defendant did not offer a defense, if an order has been issued against a defendant.
An Arbitrator may not hold a session in the absence of a litigant, unless that litigant has been warned, verbally or in writing, that the matter will be discussed at that session in his/her absence, if he/she does not come.
Before taking testimony, the Arbitrator must warn the witness that he/she must give honest testimony, and that perjury is punishable by law.
In cases where settling a dispute rests on expertise, the Arbitrator is entitled, at every stage in the process and after all the litigants have been given a proper chance to present their claims, to instruct that the matter be submitted to an expert of his/her choice for his/her expert opinion; a copy of such an expert opinion must be given to the litigants and they are entitled to rebuttal and to question the expert, as if the expert were a witness called by the Arbitrator; the Arbitrator is not obligated to hear other expert testimony regarding the matter he/she had submitted to the expert of choice, if the Arbitrator notified the litigants beforehand and they did not object.
The Arbitrator will present the arbitration file to the litigants at all reasonable times for perusal and copying.
The Arbitrator will act in the most effective manner, as he/she sees fit, to reach a speedy and just settlement to the dispute and will rule to the best of his/her judgment on the matter before him/her; the Arbitrator will not be bound by material law, the laws of evidence, or by due process as enacted in the courts.
The Arbitrator is required to render his/her Arbitration Award within 3 months from the day he/she began to deal with the dispute, or was requested to begin the process by means of either a verbal or written notice, which ever came first; however, the Arbitrator is entitled to extend that period up to an additional 3 months.
The arbitrator shall state the reason upon the Award is based on.
The Arbitrator is entitled to bring legal questions that arise during the arbitration process or a part of or the entire Arbitration Award before the Court as a legal problem in search of the court's opinion.
The Arbitrator is entitled to give a Award as declaratory sentence, as a do or don't do order, or as an immediate executive order, and any other relief that the court is authorized to offer, and is also entitled to give interim Awards that determine various parts of the arbitration.
The Arbitrator is entitled to issue instructions regarding the expenses of the parties, including the lawyers' fees, arbitrator's wages and expenses, in total or in part, and may issue instructions regarding the deposit of these sums or the provision of guarantees of their payment; in cases where the Arbitrator has issued no other orders, the litigants are obligated to pay his/her salary and expenses in equal parts.
The Arbitrator is required to keep the arbitration file for 7 years after the completion of the arbitration.
Documents regarding the arbitration that have been sent to an Arbitrator or a litigant via registered mail, with confirmation of delivery, are considered as delivered to the addressee on the date appearing on the confirmation of delivery slip or on the slip confirming refusal to accept that delivery.
President of the State of Israel, Shneor Zalman Shazar
Prime Minister, Levi Eshkol
Minister of Justice, Yaakov S. Shapira
Legal codex 535, 1968, p. 184.
Amendment: Legal codex 737, 10.7.1974, p. 92.