Approving the Filing of a Class Action and Implications on D&O Insurance Introduction: A recent Supreme Court judgement handed down on 6 May 2010 (C.M. 8761/09 Fatal v. Cellcom), may have a dramatic effect on Class Action suits filed in Israel and as a result, on liability policies such as a D&O liability policy, which
Background Very rarely do Israeli Courts address the interpretation of D&O Liability Insurance policies. Almost all insurance claims against D&O insurers are settled out of Court and therefore, there are very few Court judgements which refer to such policies. One of these judgements is C.A. (Haifa) 4600/07 Kenge Mansur v. Sahar Zion Insurance Co. Ltd.
A recent Supreme Court judgement handed down in the framework of MCA 5635113 (Coral-Tel v. Avihu Raz and three others) had put an end to an ongoing discussion in Israeli Courts concerning the possibility of filing Third Party Notices in Class Action claims. This judgement has a significant influence on the handling of the defence