Gross Law Firm discuss how multi-nationals corporations will face litigation in Israel despite contractual foreign jurisdiction clauses
In recent years, Israeli courts have shown a clear tendency to expand their jurisdiction and allow legal proceedings to be conducted in Israel against foreign companies both in ordinary civil proceedings and class action suits. It appears to us that at least in cases where foreign companies are offering goods and services to Israelis over the internet or other electronic means (and typically the contract is by virtue of uniform terms of use(, the Israeli courts have rendered the doctrine of “forum non-conveniens” largely meaningless and, as a result, it is becoming increasingly difficult if not impossible for many foreign litigants to escape the jurisdiction of Israeli courts. Even where the parties have contractually agreed to grant exclusive jurisdiction over disputes to foreign courts, Israeli courts have shown their willingness to allow claims to proceed before them, particularly where the party objecting to Israeli jurisdiction is a large multi-national corporation attempting to enforce a foreign jurisdiction clause contained in a uniform agreement with Israeli consumers.
