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Arbitration

What happens to an arbitration in Israel if the arbitrator dies or can no longer continue?

The arbitrator’s office ends and a replacement is appointed, but the arbitration itself survives. Under the Arbitration Law 5728-1968 an arbitrator’s tenure terminates on death, on incapacity, on resignation, or on removal by the court, and the parties then appoint a substitute in the same way the original appointment was made. If the agreement named that specific individual and gave no fallback, or if the parties cannot agree, either side may apply to the District Court to make the appointment. Whether the new arbitrator restarts the hearings or continues from the existing record is a matter for the parties, and for the arbitrator if they do not agree.

Israeli arbitration law separates the agreement to arbitrate from the identity of the person appointed. The agreement keeps binding the parties even when the named arbitrator is gone, unless its wording shows they intended to arbitrate before that individual and nobody else. Sections 8 and 12 of the Arbitration Law 5728-1968 supply the machinery: Section 12 addresses the end of an arbitrator’s tenure and the appointment of a substitute, and Section 8 lets the court appoint where the agreed mechanism fails. Courts normally appoint rather than allow the arbitration to collapse, since refusing would push the parties into the litigation they contracted out of. Under established Israeli practice the deadline for delivering the award is recalculated for the substitute, and the court can extend it.

The practical problems are cost and evidence. Fees already paid to the former arbitrator are generally not recoverable for work performed, and the estate of a deceased arbitrator is not required to refund them, so the parties end up funding part of the process twice. Pleadings, transcripts, and documentary evidence pass to the substitute without difficulty, but oral testimony heard by the previous arbitrator carries little weight with someone who did not hear it, which is why witnesses are often recalled. Most of this can be prevented at the drafting stage by naming an appointing institution instead of an individual and by stating in advance that a substitute may continue on the existing record. Our guide to appointing and challenging an arbitrator in Israel covers the appointment mechanics.

⚖ In Practice
  • Governing law: Sections 8, 11, 12, and 19, Arbitration Law 5728-1968
  • Competent authority: District Court (Beit Mishpat Mechozi) hears appointment applications in arbitration matters
  • Court fee: an application in an arbitration file carries a fixed fee, roughly NIS 600 to NIS 1,000 (2026), rather than a percentage of the claim
  • Timeline: an appointment application is typically decided within one to three months where the other side responds
  • Effect on the record: written material carries over to the substitute; oral evidence heard by the former arbitrator usually has to be given again
  • Drafting fix: name an appointing body rather than an individual, and state that a substitute may continue from the existing record

From the full guide: Appointing and Challenging an Arbitrator 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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