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Arbitration

Can an Israeli arbitrator award more than the amount claimed?

Generally no. An arbitrator's authority comes from the parties' arbitration agreement and the claims they actually submit, so an award that grants relief beyond what was claimed or decides matters never referred can be challenged. Under Section 24(3) of the Arbitration Law 5728-1968, a court may set aside an award where the arbitrator acted without, or in excess of, the authority granted under the arbitration agreement. Arbitrators can still add interest, linkage, and costs on top of the principal claim, because those usually flow from the dispute, but they cannot invent a larger claim than the one before them. A party who wants a higher sum should amend its statement of claim during the proceedings.

Arbitration in Israel is a creature of consent. The arbitrator's jurisdiction is bounded by the arbitration agreement and by the specific claims and counterclaims the parties put before the tribunal. If an award goes beyond those boundaries, granting a remedy nobody asked for or resolving a dispute outside the agreement, it exposes itself to challenge. Section 24 of the Arbitration Law 5728-1968 lists the grounds on which the District Court can set an award aside, and the excess-of-authority ground in paragraph (3) captures awards that stray outside the reference. This is different from awarding ancillary sums like interest, linkage differentials, and legal costs, which tribunals routinely add because they are incidental to the claim. Our guide to arbitration remedies and awards in Israel explains what tribunals can and cannot grant.

The practical lesson for parties is to plead the full remedy you want and to update your claim if the figure grows. A claimant who initially asks for a modest sum but later discovers a larger loss should formally amend the statement of claim so the higher amount is squarely before the tribunal. Waiting and hoping the arbitrator will simply award more is risky, because the excess portion could be annulled on a set-aside application. Respondents, in turn, should watch the boundaries of the reference and object promptly if the other side tries to expand the case beyond the agreement, since silence can be treated as consent to widen the arbitrator's mandate. Precise, well drafted pleadings protect an award from later attack.

⚖ In Practice
  • Governing law: Arbitration Law 5728-1968, Section 24(3) (arbitrator acted without or in excess of authority)
  • Competent authority: District Court (Beit Mishpat Mehozi) hears applications to confirm or set aside an award
  • General rule: relief cannot exceed the claims actually submitted to the tribunal
  • Permitted add-ons: interest, CPI linkage, and legal costs that are incidental to the claim
  • The fix: amend the statement of claim to increase the sum sought during the proceedings
  • Deadline: an application to set aside an award must generally be filed within 45 days of the award

From the full guide: Arbitration Remedies and Awards in Israel

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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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