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Arbitration

Can parties agree that an Israeli arbitration award may be appealed to a court on a point of law?

Yes, but only if you build it into the arbitration agreement before the dispute is decided. Section 29B of the Arbitration Law 5728-1968 lets parties agree in advance that the award may be appealed to the District Court by leave, on the ground that the arbitrator made a fundamental error in applying the law that caused a miscarriage of justice. The agreement works only where the arbitrator is required to decide according to substantive law, the award is written and reasoned, and a record of the proceedings is kept. Without that agreement the only route is a Section 24 application to set the award aside, which is far narrower.

Israeli arbitration defaults are deliberately hostile to appeals. Under the First Schedule to the Arbitration Law an arbitrator is not bound by substantive law or by the rules of evidence, and an award need not be reasoned, which leaves an appellate court nothing to review. The 2008 amendment added two opt-in routes. Section 21A allows an appeal to a second arbitrator, decided privately. Section 29B allows an appeal to the District Court subject to leave, and it applies only where the parties have contracted out of the First Schedule defaults so that the arbitrator must apply the law, give reasons, and keep a protocol of the hearings.

Foreign parties negotiating an Israeli-seated arbitration should settle this at the drafting stage rather than after an award lands. An appeal right buys legal accuracy at the cost of finality, extra time and a public court file, which erodes the confidentiality that drove the choice of arbitration in the first place. Most commercial parties who want a safety net choose the Section 21A second-arbitrator route, which keeps the dispute private. If you want the court route, say so expressly in the arbitration clause and pair it with the three conditions, because a clause granting an appeal without them cannot be used.

⚖ In Practice
  • Governing law: Sections 21A, 24 and 29B, Arbitration Law 5728-1968; the First Schedule sets the defaults that must be displaced
  • Competent authority: the District Court (Beit Mishpat Mechozi) with jurisdiction over the arbitration
  • Three conditions: the arbitrator must decide according to substantive law, the award must be written and reasoned, and a record of the proceedings must be kept
  • Standard of review: leave is granted only for a fundamental error in applying the law that caused a miscarriage of justice, not for disagreement with the arbitrator's findings of fact
  • Deadlines: an application to set an award aside under Section 24 must be filed within 45 days of receipt; the leave-to-appeal window under Section 29B is shorter, so treat 30 days as the working assumption
  • Practical alternative: Section 21A permits an appeal to a second arbitrator, preserving confidentiality and typically resolving within 3–6 months

From the full guide: Appealing an Arbitration Award 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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