{"id":222,"date":"2017-03-27T15:39:29","date_gmt":"2017-03-27T15:39:29","guid":{"rendered":"http:\/\/www.sherby.co.il\/blog\/?p=222"},"modified":"2017-03-29T09:25:06","modified_gmt":"2017-03-29T09:25:06","slug":"israeli-court-curbs-runaway-arbitrator","status":"publish","type":"post","link":"https:\/\/www.sherby.co.il\/blog\/2017\/03\/27\/israeli-court-curbs-runaway-arbitrator\/","title":{"rendered":"Israeli Court Curbs Runaway Arbitrator [bilingual post]"},"content":{"rendered":"

\u00a9 2017 Sherby & Co., Advs.<\/p>\n

When an arbitrator acts improperly, the ADR community can either lament such conduct or \u2013 if it is stopped by a court \u2013 praise the court’s action.<\/p>\n

Or possibly both.<\/p>\n

In Case No. 9294-05-1 (Feb. 2, 2017), the District Court of Jerusalem recently rejected a claim brought by an arbitrator (we will call him \u201cOliver\u201d) for the payment of arbitrator fees.\u00a0 The court also required the arbitrator to refund<\/em> fees that had been paid to him by the parties.<\/p>\n

The underlying dispute was one between a land developer and a purchaser.\u00a0 The arbitrator, Oliver, was not<\/em> a lawyer but rather an engineer and real estate appraiser.<\/p>\n

The arbitrator asserted that he devoted more than 1,000 hours to the case.\u00a0 In the Court’s brief discussion of the issue, it suggested that 1,000 hours was excessive.\u00a0 But the clear-cut error was that the arbitrator ignored a March 15, 2016 joint (presumably written) notification by the parties (the litigants before him) that they were not interested in his continuing in his position as an arbitrator.\u00a0 In fairness to Oliver, the notification from the parties was arguably ambiguous — there is a difference between saying “we settled our dispute” and saying “we do not want you to continue.”<\/p>\n

But despite the joint notification\u2019s ambiguity, it was clear enough to have put the arbitrator on notice either to stop his work on the case or at least seek clarification from the parties.\u00a0 Instead, the arbitrator issued an arbitral award on April 10, 2016 \u2013 more than three weeks after receipt of the parties\u2019 joint notification — and requested over $120,000 in arbitral fees.<\/p>\n

Because an arbitrator owes a fiduciary duty to the parties before him, if<\/em> the kind of conduct described in Oliver\u2019s case had been carried out by a lawyer, it is likely that the District Court would have referred this matter for disciplinary action by the Israeli Bar Association.\u00a0 (There is no indication in the Court’s decision that the Court would be referring Oliver to disciplinary action by any licensing authority in his field(s).)<\/p>\n

There are some in the Israeli ADR community who have been very vocal in their view that a non-lawyer should never be appointed as an arbitrator.\u00a0 This decision will probably add fuel to that fire.<\/p>\n

 <\/p>\n

\u05d1\u05d9\u05ea \u05de\u05e9\u05e4\u05d8 \u05d9\u05e9\u05e8\u05d0\u05dc\u05d9 \u05de\u05e8\u05e1\u05df \u05d0\u05ea \u05d4\u05d1\u05d5\u05e8\u05e8 \u05d4\u05d1\u05d5\u05e8\u05d7<\/strong><\/p>\n

\u05db\u05d0\u05e9\u05e8 \u05d1\u05d5\u05e8\u05e8 \u05e4\u05d5\u05e2\u05dc \u05d1\u05e6\u05d5\u05e8\u05d4 \u05dc\u05d0 \u05e0\u05d0\u05d5\u05ea\u05d4, \u05e7\u05d4\u05d9\u05dc\u05d9\u05d9\u05ea \u05d9\u05d9\u05e9\u05d5\u05d1 \u05d4\u05e1\u05db\u05e1\u05d5\u05db\u05d9\u05dd \u05d0\u05dc\u05d8\u05e8\u05e0\u05d8\u05d9\u05d1\u05d9\u05d9\u05dd (ADR) \u05d9\u05db\u05d5\u05dc\u05d4 \u05dc\u05d2\u05e0\u05d5\u05ea \u05d4\u05ea\u05e0\u05d4\u05dc\u05d5\u05ea \u05e9\u05db\u05d6\u05d5, \u05d0\u05d5 — \u05d0\u05dd \u05ea\u05d5\u05e4\u05e1\u05e7 \u05e2\u05dc-\u05d9\u05d3\u05d9 \u05d1\u05d9\u05ea \u05d4\u05de\u05e9\u05e4\u05d8 — \u05dc\u05e9\u05d1\u05d7 \u05d0\u05ea \u05e4\u05e2\u05d5\u05dc\u05ea \u05d1\u05d9\u05ea \u05d4\u05de\u05e9\u05e4\u05d8.<\/p>\n

\u05d0\u05d5 \u05d0\u05d5\u05dc\u05d9 \u05d2\u05dd \u05d5\u05d2\u05dd.<\/p>\n

\u05d1\u05ea\u05d9\u05e7 \u05d4\u05e4”\u05d1 9294-05-16 \u05d3\u05d7\u05d4 \u05d1\u05d9\u05ea \u05d4\u05de\u05e9\u05e4\u05d8 \u05d4\u05de\u05d7\u05d5\u05d6\u05d9 \u05d1\u05d9\u05e8\u05d5\u05e9\u05dc\u05d9\u05dd \u05dc\u05d0\u05d7\u05e8\u05d5\u05e0\u05d4 \u05ea\u05d1\u05d9\u05e2\u05d4 \u05e9\u05d4\u05d2\u05d9\u05e9 \u05d1\u05d5\u05e8\u05e8 (\u05e0\u05e7\u05e8\u05d0 \u05dc\u05d5 “\u05d0\u05d5\u05dc\u05d9\u05d1\u05e8”) \u05dc\u05ea\u05e9\u05dc\u05d5\u05dd \u05e9\u05db”\u05d8. \u05d1\u05d9\u05ea \u05d4\u05de\u05e9\u05e4\u05d8 \u05d2\u05dd \u05d3\u05e8\u05e9 \u05de\u05d4\u05d1\u05d5\u05e8\u05e8 \u05dc\u05d4\u05d7\u05d6\u05d9\u05e8 \u05d0\u05ea \u05d4\u05db\u05e1\u05e4\u05d9\u05dd \u05e9\u05e9\u05d5\u05dc\u05de\u05d5 \u05dc\u05d5 \u05e2\u05dc \u05d9\u05d3\u05d9 \u05d4\u05e6\u05d3\u05d3\u05d9\u05dd (\u05d1\u05e2\u05dc\u05d9-\u05d4\u05d3\u05d9\u05df \u05dc\u05e9\u05e2\u05d1\u05e8).<\/p>\n

\u05d4\u05e1\u05db\u05e1\u05d5\u05da \u05d1\u05de\u05e7\u05e8\u05d4 \u05d3\u05e0\u05df \u05d4\u05d9\u05d4 \u05d1\u05d9\u05df \u05d9\u05d6\u05dd \u05e0\u05d3\u05dc”\u05df \u05dc\u05d1\u05d9\u05df \u05e8\u05d5\u05db\u05e9. \u05d4\u05d1\u05d5\u05e8\u05e8, \u05d0\u05d5\u05dc\u05d9\u05d1\u05e8, \u05d0\u05d9\u05e0\u05d5 \u05e2\u05d5\u05e8\u05da-\u05d3\u05d9\u05df \u05d0\u05dc\u05d0 \u05de\u05d4\u05e0\u05d3\u05e1 \u05d5\u05e9\u05de\u05d0\u05d9 \u05de\u05e7\u05e8\u05e7\u05e2\u05d9\u05df.<\/p>\n

\u05d1\u05ea\u05d1\u05d9\u05e2\u05ea\u05d5 \u05d1\u05e4\u05e0\u05d9 \u05d1\u05d9\u05ea \u05d4\u05de\u05e9\u05e4\u05d8, \u05d8\u05e2\u05df \u05d4\u05d1\u05d5\u05e8\u05e8 \u05db\u05d9 \u05d4\u05e7\u05d3\u05d9\u05e9 \u05d9\u05d5\u05ea\u05e8 \u05de-1,000 \u05e9\u05e2\u05d5\u05ea \u05dc\u05ea\u05d9\u05e7. \u05d1\u05d3\u05d9\u05d5\u05df \u05d4\u05e7\u05e6\u05e8 \u05e9\u05dc \u05d1\u05d9\u05ea \u05d4\u05de\u05e9\u05e4\u05d8 \u05d1\u05e0\u05d5\u05e9\u05d0 \u05d6\u05d4, \u05e8\u05de\u05d6 \u05d1\u05d9\u05ea \u05d4\u05de\u05e9\u05e4\u05d8 \u05db\u05d9 1,000 \u05e9\u05e2\u05d5\u05ea \u05d4\u05d9\u05e0\u05d4 \u05db\u05de\u05d5\u05ea \u05de\u05d5\u05d2\u05d6\u05de\u05ea. \u05d0\u05da \u05d4\u05d4\u05ea\u05e0\u05d4\u05d2\u05d5\u05ea \u05d4\u05d1\u05dc\u05ea\u05d9-\u05de\u05e7\u05d5\u05d1\u05dc\u05ea \u05d5\u05d4\u05d1\u05e8\u05d5\u05e8\u05d4 \u05d1\u05d9\u05d5\u05ea\u05e8 \u05d4\u05d9\u05ea\u05d4 \u05e9\u05d4\u05d1\u05d5\u05e8\u05e8 \u05d4\u05ea\u05e2\u05dc\u05dd \u05dc\u05d7\u05dc\u05d5\u05d8\u05d9\u05df \u05de\u05d4\u05d4\u05d5\u05d3\u05e2\u05d4 \u05d4\u05de\u05e9\u05d5\u05ea\u05e4\u05ea (\u05e9\u05db\u05e0\u05e8\u05d0\u05d4 \u05d4\u05d9\u05d9\u05ea\u05d4 \u05d1\u05db\u05ea\u05d1) \u05de\u05d0\u05ea \u05d4\u05e6\u05d3\u05d3\u05d9\u05dd (\u05d1\u05e2\u05dc\u05d9-\u05d4\u05d3\u05d9\u05df \u05dc\u05e4\u05e0\u05d9\u05d5) \u05db\u05d9 \u05dc\u05d0 \u05d4\u05d9\u05d5 \u05de\u05e2\u05d5\u05e0\u05d9\u05d9\u05e0\u05d9\u05dd \u05d1\u05d4\u05de\u05e9\u05da \u05ea\u05e4\u05e7\u05d9\u05d3\u05d5 \u05db\u05d1\u05d5\u05e8\u05e8. \u05dc\u05de\u05e2\u05df \u05d4\u05d4\u05d2\u05d9\u05e0\u05d5\u05ea \u05db\u05dc\u05e4\u05d9 \u05d0\u05d5\u05dc\u05d9\u05d1\u05e8, \u05e0\u05d9\u05ea\u05df \u05dc\u05d5\u05de\u05e8 \u05db\u05d9 \u05d4\u05d4\u05d5\u05d3\u05e2\u05d4 \u05e9\u05dc \u05d4\u05e6\u05d3\u05d3\u05d9\u05dd \u05d4\u05d9\u05ea\u05d4 \u05e2\u05de\u05d5\u05de\u05d4 — \u05d9\u05e9 \u05d4\u05d1\u05d3\u05dc \u05d1\u05d9\u05df \u05dc\u05d5\u05de\u05e8 “\u05d9\u05d9\u05e9\u05d1\u05e0\u05d5 \u05d0\u05ea \u05d4\u05e1\u05db\u05e1\u05d5\u05da \u05d1\u05d9\u05e0\u05d9\u05e0\u05d5” \u05dc\u05d1\u05d9\u05df “\u05d0\u05e0\u05d7\u05e0\u05d5 \u05dc\u05d0 \u05e8\u05d5\u05e6\u05d9\u05dd \u05e9\u05ea\u05de\u05e9\u05d9\u05da”.<\/p>\n

\u05d0\u05da \u05dc\u05de\u05e8\u05d5\u05ea \u05e2\u05de\u05d9\u05de\u05d5\u05ea \u05d4\u05d4\u05d5\u05d3\u05e2\u05d4 \u05d4\u05de\u05e9\u05d5\u05ea\u05e4\u05ea, \u05d4\u05d9\u05d0 \u05d4\u05d9\u05d9\u05ea\u05d4 \u05de\u05e1\u05e4\u05d9\u05e7 \u05d1\u05e8\u05d5\u05e8\u05d4 \u05db\u05d3\u05d9 \u05e9\u05d4\u05d1\u05d5\u05e8\u05e8 \u05d9\u05e4\u05e1\u05d9\u05e7 \u05d0\u05ea \u05e2\u05d1\u05d5\u05d3\u05ea\u05d5 \u05d0\u05d5 \u05dc\u05db\u05dc \u05d4\u05e4\u05d7\u05d5\u05ea \u05d9\u05d1\u05e7\u05e9 \u05d4\u05d1\u05d4\u05e8\u05d4 \u05de\u05df \u05d4\u05e6\u05d3\u05d3\u05d9\u05dd. \u05d1\u05de\u05e7\u05d5\u05dd \u05d6\u05d0\u05ea, \u05d4\u05d5\u05e6\u05d9\u05d0 \u05d4\u05d1\u05d5\u05e8\u05e8 \u05e4\u05e1\u05e7 \u05d1\u05d5\u05e8\u05e8\u05d5\u05ea \u05d1\u05d9\u05d5\u05dd 10.04.16 — \u05d9\u05d5\u05ea\u05e8 \u05de\u05e9\u05dc\u05d5\u05e9\u05d4 \u05e9\u05d1\u05d5\u05e2\u05d5\u05ea \u05dc\u05d0\u05d7\u05e8 \u05e7\u05d1\u05dc\u05ea \u05d4\u05d4\u05d5\u05d3\u05e2\u05d4 \u05d4\u05de\u05e9\u05d5\u05ea\u05e4\u05ea \u05e9\u05dc \u05d4\u05e6\u05d3\u05d3\u05d9\u05dd — \u05d5\u05d1\u05d9\u05e7\u05e9 \u05e9\u05db”\u05d8 \u05de\u05e2\u05dc 120,000 \u05d3\u05d5\u05dc\u05e8.<\/p>\n

\u05de\u05d0\u05d7\u05e8 \u05e9\u05dc\u05d1\u05d5\u05e8\u05e8 \u05d7\u05d5\u05d1\u05ea \u05e0\u05d0\u05de\u05e0\u05d5\u05ea \u05db\u05dc\u05e4\u05d9 \u05d1\u05e2\u05dc\u05d9-\u05d4\u05d3\u05d9\u05df \u05dc\u05e4\u05e0\u05d9\u05d5, \u05d0\u05dd \u05d4\u05d4\u05ea\u05e0\u05d4\u05dc\u05d5\u05ea \u05d4\u05de\u05ea\u05d5\u05d0\u05e8\u05ea \u05d1\u05de\u05e7\u05e8\u05d4 \u05e9\u05dc \u05d0\u05d5\u05dc\u05d9\u05d1\u05e8 \u05d4\u05d9\u05d9\u05ea\u05d4 \u05e0\u05e2\u05e9\u05d9\u05ea \u05e2\u05dc-\u05d9\u05d3\u05d9 \u05e2\u05d5\u05e8\u05da-\u05d3\u05d9\u05df, \u05e1\u05d1\u05d9\u05e8 \u05dc\u05d4\u05e0\u05d9\u05d7 \u05e9\u05d1\u05d9\u05ea \u05d4\u05de\u05e9\u05e4\u05d8 \u05d4\u05de\u05d7\u05d5\u05d6\u05d9 \u05d4\u05d9\u05d4 \u05de\u05e4\u05e0\u05d4 \u05d0\u05ea \u05d4\u05e2\u05e0\u05d9\u05d9\u05df \u05dc\u05d5\u05d5\u05e2\u05d3\u05ea \u00a0\u05d4\u05de\u05e9\u05de\u05e2\u05ea \u05e9\u05dc \u05dc\u05e9\u05db\u05ea \u05e2\u05d5\u05e8\u05db\u05d9-\u05d4\u05d3\u05d9\u05df \u05d4\u05d9\u05e9\u05e8\u05d0\u05dc\u05d9\u05ea . (\u05d0\u05d9\u05df \u05db\u05dc \u05d0\u05d9\u05e0\u05d3\u05d9\u05e7\u05e6\u05d9\u05d4 \u05d1\u05d4\u05d7\u05dc\u05d8\u05ea \u05d1\u05d9\u05ea \u05d4\u05de\u05e9\u05e4\u05d8 \u05db\u05d9 \u05d4\u05d5\u05d0 \u05d9\u05e4\u05e0\u05d4 \u05d0\u05ea \u05d0\u05d5\u05dc\u05d9\u05d1\u05e8 \u05dc\u05d4\u05dc\u05d9\u05da \u05de\u05e9\u05de\u05e2\u05ea\u05d9 \u05d0\u05e6\u05dc \u05d2\u05d5\u05e8\u05dd \u05de\u05d5\u05e1\u05de\u05da \u05db\u05dc\u05e9\u05d4\u05d5 \u05d1\u05ea\u05d7\u05d5\u05dd(\u05d9\u05dd) \u05e9\u05dc\u05d5.)<\/p>\n

\u05d1\u05e7\u05d4\u05d9\u05dc\u05d9\u05d9\u05ea \u05d9\u05d9\u05e9\u05d5\u05d1 \u05d4\u05e1\u05db\u05e1\u05d5\u05db\u05d9\u05dd \u05d0\u05dc\u05d8\u05e8\u05e0\u05d8\u05d9\u05d1\u05d9\u05d9\u05dd \u05d4\u05d9\u05e9\u05e8\u05d0\u05dc\u05d9\u05ea, \u05d9\u05e9\u05e0\u05dd \u05e9\u05d4\u05d9\u05d5 \u05de\u05d0\u05d5\u05d3 \u05d5\u05d5\u05e7\u05d0\u05dc\u05d9\u05dd \u05d1\u05d3\u05e2\u05ea\u05dd, \u05db\u05d9 \u05d0\u05d9\u05df \u05dc\u05de\u05e0\u05d5\u05ea \u05db\u05d1\u05d5\u05e8\u05e8 \u05d0\u05d3\u05dd \u05e9\u05d0\u05d9\u05e0\u05d5 \u05e2\u05d5\u05e8\u05da-\u05d3\u05d9\u05df. \u05d9\u05d9\u05ea\u05db\u05df \u05db\u05d9 \u05d4\u05d4\u05d7\u05dc\u05d8\u05d4 \u05d4\u05e0”\u05dc \u05ea\u05d7\u05d6\u05e7 \u05e2\u05de\u05d3\u05d4 \u05d6\u05d5.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a9 2017 Sherby & Co., Advs. When an arbitrator acts improperly, the ADR community can either lament such conduct or \u2013 if it is stopped by a court \u2013 praise the court’s action. Or possibly both. In Case No. 9294-05-1 (Feb. 2, 2017), the District Court of Jerusalem recently rejected a claim brought by an<\/p>\n

Continue Reading…<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,3],"tags":[],"class_list":["post-222","post","type-post","status-publish","format-standard","hentry","category-arbitration","category-israeli-litigation"],"_links":{"self":[{"href":"https:\/\/www.sherby.co.il\/blog\/wp-json\/wp\/v2\/posts\/222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sherby.co.il\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sherby.co.il\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sherby.co.il\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sherby.co.il\/blog\/wp-json\/wp\/v2\/comments?post=222"}],"version-history":[{"count":4,"href":"https:\/\/www.sherby.co.il\/blog\/wp-json\/wp\/v2\/posts\/222\/revisions"}],"predecessor-version":[{"id":226,"href":"https:\/\/www.sherby.co.il\/blog\/wp-json\/wp\/v2\/posts\/222\/revisions\/226"}],"wp:attachment":[{"href":"https:\/\/www.sherby.co.il\/blog\/wp-json\/wp\/v2\/media?parent=222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sherby.co.il\/blog\/wp-json\/wp\/v2\/categories?post=222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sherby.co.il\/blog\/wp-json\/wp\/v2\/tags?post=222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}