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Arbitration

Can a dispute involving a minor or a person under guardianship be arbitrated in Israel?

Only with court approval. Section 4 of the Arbitration Law 5728-1968 provides that an arbitration agreement in a matter concerning a person lacking legal capacity binds that person only where the court approved it, and the same applies where a guardian or parent signs on behalf of a minor. The requirement exists because arbitration removes the protective supervision a court would otherwise exercise. Approval is sought from the court that would have heard the underlying dispute, which for inheritance and family matters is usually the Family Court. An award produced without that approval is open to challenge under Section 24 of the same law.

Israeli arbitration law rests on party consent, and a person without full legal capacity cannot give it. Section 4 therefore treats a guardian's signature as provisional until a court reviews the arrangement. The court examines whether arbitration actually serves the protected person's interests, who the proposed arbitrator is, how costs will fall, and whether any review mechanism exists. The Legal Capacity and Guardianship Law 5722-1962 reinforces this by requiring court approval before a guardian takes several categories of significant step for the ward. Approval is granted for a defined dispute or a specific arbitration agreement rather than as a standing authority to arbitrate anything that arises later.

The point surfaces most often in estate disputes where one heir is a minor, or where an elderly parent is under guardianship and the family wants a private, faster resolution than the Family Court can offer. The common mistake is to sign the family settlement and its arbitration clause together, run the arbitration, and only then discover that the award cannot be confirmed or registered. Apply for approval before the first hearing, attaching the draft arbitration agreement and the arbitrator's identity, and expect the court to require reporting on the outcome where the ward holds assets. Where the Administrator General (Apotropos HaKlali) supervises the guardianship, its position is usually sought, a theme explored further in the guide to arbitrability in Israel.

⚖ In Practice
  • Governing law: Section 4, Arbitration Law 5728-1968; Legal Capacity and Guardianship Law 5722-1962
  • Competent authority: the court with jurisdiction over the underlying dispute, commonly the Family Court (Beit Mishpat LeInyanei Mishpacha)
  • What the court reviews: the arbitrator's identity, the scope of the dispute, allocation of costs, and whether the outcome protects the ward
  • Timeline: approval applications are typically decided within 4-10 weeks where no party objects
  • Effect of skipping approval: the agreement does not bind the protected person, and the award is exposed to being set aside under Section 24 of the Arbitration Law
  • Supervision: the Administrator General (Apotropos HaKlali) may be asked for its position where it oversees the guardianship

From the full guide: Arbitrability in Israel: What Can and Cannot Be Arbitrated

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Get a Free Consultation with Adv. Eli ShimonyPrepared under the direction of Adv. Eli Shimony, Eli Shimony Law Office · Editorial policy

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