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Arbitration in Israel
The Arbitration Law 1968
Recongnition and Enforcement of Foregin Arbitral Award
The Arbitration Agreement
The Arbiration Clause
A Consensual Appeal
Stay of Court Proceedings
Justice and Effiecnent Ruleling
Interim Measures
The Arbitral Award
Setting Aside the Award
The New York Convention Regulations
Institutional Arbitration v. ad hoc
International Arbitration & Mediation




Home page Arbitration & A.D.R The Arbitral Award

The Arbitral Award

Date 14/4/2015

The Form of the Arbitral Award and its Effect

An arbitral award is defined under Article 1 of the Israeli Arbitration Law as follows:

 

"arbitral award” –     An award rendered by an arbitrator, including an interim award;

 

This definition should be read together with Article R to the First Addendum:

"xvii.   The arbitrator may grant a declaratory judgment, a mandatory order or an injunctive order, an order for specific performance and any other relief which a court is authorized to give, and they may also render an interim award deciding on the issues in the arbitration in parts."

 

The status of a partial or interim award, which rules on part of the dispute, is the same as a final award. Therefore, as in the case of a final award, a request to set the partial arbitral award aside in a domestic arbitration should be filed within 45 days pursuant to Article 27 of the Arbitration Law, unless a request to approve such an award was submitted earlier. Articles 20 and 21 to the Arbitration Law define the form requirements of an arbitral award and its validity:

 

The Form of the Arbitral Award 

20.       The arbitral award shall be in writing and shall be signed by the arbitrator, indicating the date of the signature; In an arbitration before a number of arbitrators, the signature of the majority of the arbitrators shall be sufficient if the award notes that the other arbitrators cannot or do not wish to sign it."

 

The Arbitration Law does not specify what kind of signature is required. Therefore, even a finger print (signature) could theoretically be valid, but as a general practice all arbitral awards must be signed as customary.

 

Legal Effect of an Arbitral Award

21.       Subject to Sections 24 to 28 and unless a contrary intention appears in the arbitration agreement, the arbitral award shall bind the parties and their successors in the same manner as a court decision.”

 

Therefore, parties to arbitrations are expected to perform the arbitral award with no court involvement. However, if one party has not followed the award, a request to approve and enforce the award is crucial. The court's approval enables the arbitral award's enforcement as a judicial award. The arbitral award can be approved as a judicial award where the requirements set out in Article 20 of the Arbitration Law are complied with:

1.         It must be in writing. 

2.         It must be signed.

3.         The date must be indicated.

Provided these conditions are met, the court may approve the arbitral award pursuant to Article 23 of the Arbitration Law:

 

Approval of an Arbitral Award

23       (a)        The court may, upon the filing of a request by a party, approve an arbitral award; Where the arbitral award has been approved – it shall be considered, for all intents and purposes,  other than appeal, as a judicial award.

            )b)        The court shall not hear objections to the approval of an arbitral award other than by means of an application to set it aside or by means of an appeal of the arbitral award pursuant to Article 29B.

 

In case where the place and seat of international arbitration is in Israel, then the approval of the arbitral award should be pursuant to the Israeli Arbitration Law. Thus, the applicant shall base his request to approve or to amend or to set aside the arbitral award on articles 23 – 28 of Arbitration Law.

Pursuant the Arbitration Law, the arbitrator shall state the reasons upon which the award is based unless the parties have agreed otherwise. This important rule was added to the First Addendum in 2008, and is also the standard rule in all the main international institutional rules, such as the CPR , the AAA  and the LCIA .

 

The Arbitral Award under Appeal

Courts will dismiss requests to approve an arbitration award which is subject to appeal procedure as long as the time to appeal had not yet passed.

Where the parties agree on an appeal procedure before an arbitrator under Article 21A of the Arbitration Law and the Second Addendum will govern the appeal procedure.

In this case, a request to set the award will be limited to Articles 24(9) and (10) to the Arbitration Law, as the parties benefit from a review of the award by the arbitrator.

When the parties agree to an appeal process by leave of the Court, the grounds for appeal are very limited under Article 29b of the Arbitration Law. However, the parties are free to apply setting aside the award on any of the grounds provided in Article 24 of the Arbitration Law.

 

 

 

 

 

 

 

 





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