Israeli Supreme Court Lost between the Israeli Arbitration Act and the New York Convention

Kluwer Arbitration Blog

2 Pages Posted: 16 Nov 2014 Last revised: 10 Jul 2017

See all articles by Tamar Meshel

Tamar Meshel

University of Alberta - Faculty of Law

Date Written: November 14, 2014

Abstract

The dispute in Siemens AG and Siemens Israel Ltd. v. Israeli Electric Cooperation Ltd. (3331/14, Supreme Court of Israel Judgment, 13 August 2014) arose out of a request for tenders for the purchase and maintenance of gas turbines issued by the Israeli Electric Cooperation (IEC), following which it entered into several contracts with Siemens Israel and Siemens AG. All of the contracts contained an identical arbitration clause providing for arbitration “to be held as promptly as possible at such place in Israel as may be mutually agreed upon between the parties”. In 2013, IEC commenced an action against Siemens in the Israeli District Court, claiming that the contracts were signed as a result of a bribe paid by Siemens to one of IEC’s directors. Siemens applied to the District Court to stay the proceedings pursuant to the Israeli Arbitration Act, 1968 (IAA) and the arbitration clause contained in the contracts. The District Court refused to grant a stay of proceedings and Siemens applied for leave to appeal to the Supreme Court of Israel.

Suggested Citation

Meshel, Tamar, Israeli Supreme Court Lost between the Israeli Arbitration Act and the New York Convention (November 14, 2014). Kluwer Arbitration Blog, Available at SSRN: https://ssrn.com/abstract=2524652

Tamar Meshel (Contact Author)

University of Alberta - Faculty of Law ( email )

Law Centre (111 - 89 Ave)
University of Alberta
Edmonton, Alberta T6G 2H5
Canada

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