Never-Ending Arbitration

Arbitration has been ongoing for seven years between members of a purchase group and the Hagag Brothers, and the parties have already spent more than half a million shekels on the arbitration. How has a process that is meant to be efficient and friendly become longer and even more expensive than a case in court?

20.02.17 | Shlomit Zur

In her article reviewing the lengthy Hagag case, and presenting comments from various parties on the arbitration process, and where it’s gone amiss, Tsur includes the following comments from Attorney Gabi Moyal Maor:

“Arbitration is a critical tool when it comes to real estate disputes”

“Arbitration is a critical tool when it comes to disputes related to real estate, because a project under construction is often at the heart of the dispute, and resolution of the dispute frequently has implications on the construction of the project, on the financing, and other issues,” explains  Adv. Gabi Moyal Maor, a senior partner at law firm Hamburger Evron & Co., and head of the firm’s arbitration, mediation and dispute resolution (ADR) department.

“On many occasions when I serve as arbitrator, parties coming to me seek resolution within two months, because on the table is a project under construction, and they want to organize termination of the relations between them. Matters are meant to be conducted more quickly and purposefully in arbitration than in a court proceeding. The main advantage in arbitration is that the parties choose who the arbitrator will be, and can decide in advance to go to an arbitrator who is an expert in the field and thus also save a lot of time.”

Moyal also addresses timeframes:

“When I serve as arbitrator in disputes, together with the parties I set an outline for filing of pleadings, hearing witnesses, so as to place the process into a reasonable and sensible timeframe. Given that parties often have conflicting interests, with one wanting a fast decision and the other to drag their heels, the objective of the arbitrator is to set a time schedule. Most arbitration processes I know of have taken place within a reasonable period of time. In certain cases, the court has the authority to remove an arbitrator if he is causing a delay of justice and not managing the dispute in an effective manner.”