| 1. |
Recoverability of costs |
|
| 1.1 |
Can any costs be recovered by a party to civil litigation? |
Yes. |
| 1.2 |
Does the losing party usually pay the successful party’s costs? |
Yes. Where a party succeeds, the other party will usually be ordered to pay its costs, as may be awarded by the court. |
| 1.3 |
Can costs be ordered to be paid to, or by a non-party? |
Yes. A witness/expert who was called to testify in court may be awarded a refund of costs incurred. |
| 2. |
Details of recoverability of costs |
|
| 2.1 |
On what basis are costs recoverable? |
The court may exercise discretion in determining the amount of legal costs to award to a party.In determining the amount of legal fees, the courts may follow the recommended minimum tariff for legal fees set out in the Rules of the Chamber of Advocates (Recommended Minimum Tariff), 5760-2000 (the “Tariff’). The legal fees ordered by the court are often considerably lower than the actual legal fees incurred by the parties. This is particularly the case when the claimant is ordered to pay the legal fees of a successful defendant. |
| 2.2 |
Is the amount of recoverable costs fixed? |
No. However, the Bar Association Regulations determine the maximum fee rates in motor vehicle accident claims.The Tariff:● 8% of the amount achieved when the case ended without filing a lawsuit in court● 11% of the amount achieved by compromise after filing a claim● 13% of the amount awarded by judgement |
| 2.3 |
Is the amount of recoverable costs calculated by reference to the amount in dispute? |
It is considered as part of the court’s discretion. For example, the Tariff is proportionate to the amount awarded. |
| 2.4 |
What can be recovered as “costs”? |
Lawyer - client fees: YesAdditional lawyer fees (for example, counsel fees or trial advocate fees): Yes Agency fees (for example, London agents, local agents, appellate lawyer, bailiff/process-server): No Court fees: Yes Disbursements (including, but not limited to, photocopying, expert witness, travel, translation, notarial, witness attendance, etc: Yes |
| 3. |
Particular costs issues |
|
| 3.1 |
Can a party agree with its own lawyer, a special costs arrangement? |
Yes. Israeli law permits contingency fee arrangements. They are commonly used in personal injury cases and subrogation claims. |
| 3.2 |
Which tribunal resolves costs disputes and how? |
According to section 511-513 of the Civil Procedures Regulations, the court will decide on costs and lawyer’s fees at the end of the litigation. A request to assess the cost, if awarded, should be referred to the Court Registrar who will provide a ruling in respect of the costs awarded to the successful party, based on invoices and approval of payment presented to it. |
| 3.3 |
Can a party be required to provide security for costs (or some other sum) in advance of costs being decided? |
Yes. The court may order the claimant to provide security for costs in the following circumstances: ● if the claimant is a foreign resident of a country which is not a signatory to the Hague Convention and has no assets in Israel; or● if the claimant is an Israeli or foreign corporation with no apparent means to pay the defendant’s legal costs.The courts tend to be reluctant to award security of costs, as it runs contrary to the claimant’s right of access to the courts. |
| 4. |
Costs awards |
|
| 4.1 |
Can interim awards of costs be obtained? |
Yes. Costs can be awarded in respect of interim applications. |
| 4.2 |
Can an award of costs be increased or decreased by reference to such matters as a party’s conduct of the case? |
Yes. The court will take into consideration the parties’ behaviour during the trial, including efficiency, good faith, the justification of the arguments raised based on previous precedents, etc. The court may even choose not to award any costs to the winning party when the dispute was justified and the trial was efficiently handled. |
| 4.3 |
How are costs awards enforced? |
Costs awards are enforced by the same method for enforcing monetary judgement - the Execution Law. |
| 4.4 |
Can a costs award be set off against a monetaryjudgment? |
No. |
| 4.5 |
Is interest payable on unpaid costs? |
Yes. In accordance with the Interest and Linkage Award Law. |
| 5. |
Costs of an appeal |
|
| 5.1 |
Are costs of an appeal treated differently? |
No |
| 6. |
Funding of civil and commercial claims |
|
| 6.1 |
Can costs be insured? |
Yes.A party may purchase insurance against potential legal costs. In addition, liability policies usually cover the cost of litigation which is payable over and above the limit of the sum insured. |
| 6.2 |
Is legal aid available? |
Yes.Under the Legal Aid Law 1972, a party lacking in financial means may apply for legal aid to the Legal Aid Unit of the Ministry of Justice. A registered legal aid lawyer will be appointed to act for a successful applicant. The aided party will be required to pay a symbolic fee, commensurate with its means. A party may appeal the rejection of a legal aid application.Court filing fees may be waived for a party in poor financial circumstances.When awarding costs, the court will consider the legal aid status of the losing party.Legal aid is granted on the basis of criteria set by the Ministries of Justice and Welfare, from time to time. The size of award that an applicant is granted pursuant to the criteria depends on the results of a means test.The Legal Aid Law and the Legal Aid Regulations settle the terms (which are usually based on the economic situation of the party) for legal assistance. |
| 6.3 |
Is third party funding of claims available? |
No. |
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