Proceedings, claims and business regulation: the complete guide

The short answer

A civil dispute is usually decided on one of three routes: a small claim for low amounts, where representation by a lawyer is allowed only with the court’s permission (section 63 of the Courts Law [Consolidated Version], 5744-1984); arbitration or mediation, by agreement of the parties; and an ordinary claim in the Magistrates’ Court or the District Court. Under section 5 of the Prescription Law, 5718-1958, a claim that does not concern land usually becomes time-barred after seven years, so timing is a key consideration.

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An arbitration clause, a jurisdiction clause and a timetable for notice set in the contract decide where and when a dispute will be conducted. These are checked and drafted in advance: legal support for commercial contracts.

What the law provides

The legal framework in this area rests on the following laws. The links lead to the original legislation (in Hebrew); the binding text is the one published in Sefer HaHukim (the official gazette of statutes).

Legislation index: all the sections the site discusses

The index of sections on the site: Protection of Privacy Law, 5741-1981 · Labor Court Law, 5729-1969 · Prohibition of Defamation Law, 5725-1965 · Copyright Act, 5768-2007.

The three routes for resolving a civil dispute

A small claim suits low amounts and is conducted in a short, informal procedure, usually without legal representation of the parties. Arbitration, regulated by the Arbitration Law, 5728-1968 (חוק הבוררות, התשכ״ח-1968), and mediation are based on the agreement of the parties. In arbitration, an arbitrator chosen by the parties decides the dispute, and an arbitral award approved by the court has the same effect as a judgment (section 23 of the Arbitration Law). In mediation, to which the court may refer the parties with their consent (section 79C of the Courts Law), a mediator guides the parties toward an agreement but does not decide anything themselves. An ordinary claim is filed in the Magistrates’ Court or the District Court, according to the division of jurisdiction set by the Courts Law [Consolidated Version], 5744-1984.

When a claim “dies” because of time: the limitation period

The Prescription Law, 5718-1958 provides that every civil claim has a limited legal life. The ordinary period is seven years from the day the cause of action arose: usually the day of the breach, the day the damage occurred or the set repayment date, and not the day the agreement was made (sections 5–6). For claims concerning land the period is longer: fifteen years, and the Prescription Law does not apply to a claim to enforce a right in registered land (section 159(b) of the Land Law, 5729-1969). It is important to know that the limitation period does not erase the substantive right itself. It only blocks the legal hearing of the claim if the defendant raised the argument explicitly at the first opportunity; the court does not examine it on its own initiative (sections 2–3).

A numerical example

A contractor did work in September 2018 and the client did not pay. The cause of action arose on the repayment date set in the agreement (say, 1 October 2018), and not on the date the work itself was done. The contractor can file a monetary claim until 1 October 2025. A claim filed after that date is exposed to the defense that it is time-barred, but only if the client raises that defense at the first opportunity after the claim is filed (section 3). If the amount in dispute had been low, the contractor could have chosen to file a small claim instead of an ordinary claim, and to conduct the proceeding themselves without a lawyer.

Routes for deciding a dispute: who decides, legal representation and finality
Route	Who decides	Legal representation	Finality
Small claim	A judge	As a rule, without representation	Limited appeal
Arbitration	An arbitrator chosen by the parties	As the parties choose	An approved arbitral award has the effect of a judgment; narrow grounds for setting it aside (sections 23–24 of the Arbitration Law)
Mediation	The parties themselves (a mediator guides them)	As the parties choose	A mediation agreement, not a judicial decision
Ordinary claim	Magistrates’ Court / District Court	Possible and common	Appeal under the rules of procedure

For practical information on the main proceedings, see Commercial arbitration: the process, advantages and disadvantages, Commercial mediation: process and advantages and Mandatory mediation and a MAHUT meeting (information, introduction and coordination meeting): what the court can require, and what not, as well as the index of the sections of the Prescription Law.

Map of the topic

Business regulation is the set of duties that the state imposes on a business under laws, regulations and a regulator’s guidelines: disclosure duties in advertising and marketing, licensing and supervision of financial services, protection against fraud and cybercrime, and administrative enforcement through fines and monetary sanctions. A lawyer is needed when a demand, an invitation to a hearing or a fine from a regulator arrives, before launching an activity that requires a license or disclosure, and when the business has been hit by fraud and needs to act fast. Some of the articles here (mainly on financial services and digital banking) deal with sectors that are not among the office’s practice areas, and they are provided as general information only.

Advertising, marketing and disclosure to consumers

Advertising must be true and not misleading, electronic marketing requires the recipient’s prior consent, and prices must be displayed transparently. See: Advertising law in Israel, Misleading advertising: who is liable, the Spam Law, price transparency and dark patterns. The relevant sections are in the Consumer Protection Law and the Communications Law.

Cyber, payment fraud and online crime

Unlawful intrusion into computer material, disrupting a computer and giving false information are offenses under the Computers Law, 5755-1995, and business email compromise fraud requires a response within hours to try to stop the money. See: Cybercrime in Israel, business email compromise fraud and preventing payment fraud. The relevant fraud offenses are in the Penal Law.

Financial services, payments and digital banking

Providing payment services, credit or other financial services requires licensing and supervision, and fintech regulation changes quickly. The articles Fintech regulation and digital banking and Smart contracts are provided as general background only: these areas are not among the office’s practice areas. For the sections of the law, see the Payment Services Law.

Administrative enforcement, licensing and appealing a fine

Authorities and regulators have the power to impose administrative fines and monetary sanctions, but the person fined has a right to be heard and a right to object or appeal within set deadlines, and sometimes also an administrative petition. See: Administrative enforcement and appealing an administrative fine and Administrative petition. Related articles: minimum wage, non-disclosure agreements (NDA) and bank guarantee.

This category brings together legal articles that do not belong to a single cluster: the law of election propaganda and petitions to the Chairperson of the Central Elections Committee (an area in which the office actually works), alongside basic articles on civil procedure, on limitation periods and on the liability of digital platforms. A lawyer is needed when there is a set deadline (a petition, an appeal or a limitation period) and when the proceeding is conducted against a represented party. The articles are meant for readers who want to understand how the proceeding works before they enter it.

Election propaganda and petitions to the Chairperson of the Central Elections Committee

The Elections (Modes of Propaganda) Law, 5719-1959 (חוק הבחירות (דרכי תעמולה), התשי״ט-1959) prohibits the use of public resources for propaganda and restricts other modes of propaganda, and the Chairperson of the Central Elections Committee has the power to grant an injunction in petitions filed with them. The articles What counts as election propaganda, Use of public resources in propaganda and A petition to the Chairperson of the Central Elections Committee are also based on petitions filed by the office. Hub guide: Election propaganda and public law; the sections of the law are in the Elections (Modes of Propaganda) Law; for the practical question, see May a minister film election propaganda in their office?

Civil procedure: a claim, a temporary injunction and mediation

A civil claim starts with choosing the court according to the amount and nature of the claim; temporary relief requires showing prima facie evidence and necessity; and in some cases the court refers the parties to mediation. See: Small claims, Temporary injunction, Mandatory mediation, Enforcing an arbitral award and Administrative petition. An unpaid debt, from the debtor’s side and from the business’s side: Debts, collection and enforcement proceedings: the guide for both sides, including You received a warning from the Execution Office, Attachment of a bank account, A customer is not paying and Interest and linkage on a debt.

Limitation periods and deadlines

A civil claim that does not concern land becomes time-barred after seven years from the day the cause of action arose, and for land the periods are longer. Specific laws set much shorter deadlines for an appeal, an objection or a petition, so checking the deadline is the first step in every case. The Prescription Law page brings together the sections the site discusses; the articles on the Basic Laws and on the Freedom of Information Law complete the picture when dealing with authorities.

Platform liability and related articles

A digital platform is not automatically liable for all the content its users publish, but once it knew about offensive content and did not act, liability may shift to it. See Liability of digital platforms. The category also includes Non-competes in high-tech and Unlawful dismissal, which belong to the employment law guides, and related articles on agency agreements and on data sovereignty in the cloud.

The guides in this area (48)

All the indexed guides on the site in this area. Each guide states the legislation it relies on.

FAQ

When is it better to choose arbitration over an ordinary claim in court?
Arbitration, regulated by the Arbitration Law, suits cases where the parties prefer a decision that is quick, private and sometimes more professional (an arbitrator with professional knowledge of the field), and an arbitral award approved by the court has the same effect as a judgment (section 23). An ordinary claim suits cases where you want the full set of procedural and appeal rights that the courts provide.

How long do I have to file a monetary claim?
As a rule, seven years from the day the cause of action arose: usually the day of the breach or the set repayment date, and not the day the agreement was signed (sections 5–6 of the Prescription Law). For claims concerning land the period is longer.

If a claim is time-barred, do I still owe the money?
In substance, yes. The limitation period (section 2 of the Law) only blocks the legal hearing of the claim if the defendant raised the argument explicitly at the first opportunity (section 3), but it does not erase the debt itself. The debt can still be used for a set-off or a counterclaim in a proceeding on the same subject or arising from the same circumstances (section 4).

I received an administrative fine: can I appeal?
Yes, but within a set deadline. Under the Administrative Offenses Law, 5746-1985 (חוק העבירות המינהליות, התשמ״ו-1985), a person who received a fine notice may, within 30 days of its service, give notice that they want to stand trial for the offense instead of paying the fine (section 8(c)), or ask for the notice to be canceled (section 8A). Monetary sanctions under other laws usually include a right to be heard before they are imposed and a right of appeal afterwards. Missing the deadline may block your arguments. See: Appealing an administrative fine.

Can you send advertising by direct mailing without consent?
As a rule, no. Section 30A of the Communications Law prohibits sending an advertising message by email, text message, fax or an automatic dialing system without the recipient’s express prior consent, except for a narrow exception for an existing customer who gave their details and did not refuse. Every message must include an option to unsubscribe. For a message sent knowingly in breach of the section (and it is presumed to have been sent that way), the court may award the recipient exemplary damages of up to NIS 1,000, without proof of damage (section 30A(j)). See: the Spam Law.

The business transferred money because of a fake email: what do you do?
Contact the sending bank and the receiving bank at once with a request to stop or freeze the transfer, file a police complaint, keep all the correspondence and the message headers, and notify the insurance company if there is cyber coverage. The faster you act, the greater the chance that the money has not yet been withdrawn. See: Business email compromise fraud: the legal response.

What counts as election propaganda?
The Elections (Modes of Propaganda) Law does not define “election propaganda”. The test applied in decisions of the Chairperson of the Central Elections Committee (for example, CEC cases (תב״כ) 28-31, 33/26) is the dominant purpose of the publication (whether its main effect is on the voter), and an explicit call to vote is not required. Among other things, the Law prohibits the use of public resources for propaganda. See: What counts as election propaganda? The tests in practice.

What can you ask for in a petition to the Chairperson of the Central Elections Committee?
The only relief that section 17B of the Law gives is an injunction: an order that prevents an offense under the Law from being committed or continued. Not compensation and not a declaratory remedy. The order is given after the person concerned has had an opportunity to present their arguments, and the proceeding is fast and conducted under dedicated rules of procedure. See: A petition to the Chairperson of the Central Elections Committee: how it works.

How soon does a civil claim become time-barred in Israel?
As a rule, a claim that does not concern land becomes time-barred after seven years from the day the cause of action arose. For land the periods are longer, and in cases of fraud or of facts that were hidden from the plaintiff, the limitation period may start later. The limitation period is a defense that the defendant must raise at the first opportunity (section 3), and it blocks the claim without canceling the right itself. See: Prescription Law — the sections discussed on this site.

Can you sue a platform over offensive content that a user posted on it?
In Israel there is no law that gives platforms sweeping immunity, and no law that imposes automatic liability on them. A platform that received a reasoned request about offensive content (mainly defamation or copyright infringement) and did not remove it within a reasonable time is more exposed to the argument that it is liable. The first step is a documented written request. See: Liability of digital platforms.

For collected answers in all practice areas, see the FAQ page, and for the map of services — all practice areas.

All the questions on the site about proceedings, claims and business regulation, grouped by page, each linked to its answer.

For short definitions with the section of the law, such as limitation period, small claim and warning letter, see the glossary of legal terms.

Calculators and self-checks, such as the class action self-check, are on the calculators and tools page.

Do you need legal support with proceedings, claims or business regulation?

Yaron Meiri, Adv. & CPA — lawyer and CPA, an independent office in Kiryat Ono. Member of the Israel Bar Association and of the Institute of Certified Public Accountants in Israel.

Class actions and consumer claims · Practice areas · FAQ

The content of this page is general information, is not legal advice and does not create an attorney-client relationship. Translated: 12 November 2026 · Hebrew version updated: 13 October 2026.

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