Ms Peggy Sharon

Peggy Sharon

Lawyer biography

Peggy Sharon, LL.B. is a graduate (Suma Cum Laude) of the Tel Aviv University (1974) in which she was assistant lecturer on Contract Law and Jurisprudence for six years.

Peggy entered private practice with a firm in Tel Aviv handling insurance claims and in 1985 joined R. Levitan & Co. as a partner.

Peggy heads the litigation department and has been involved in major coverage litigation handled by the firm in various insurance disputes such as Jewelers' Block Policies, Professional liability claims, B.B.B. Claims, Private International Law Disputes, Reinsurance and Aviation including several important Supreme Court precedents.

Over the years Peggy Sharon has written and published various articles on insurance subjects and wrote the Israeli chapter in “International Execution Against Judgement Debtors” published by Sweet & Maxwell, and the Israeli section in “Enforcement of Foreign Judgements”, edited by J. Campbell and published by Kluwer.

Peggy is a member of the Israeli Bar Association, and the representative of the Israeli Section of AIDA (Association Internationale de Droit D'Assurance) - Reinsurance working party and is responsible for the international comparative chapter on Limitation.

Languages: Hebrew, English and German



Airport operator's liability towards passengers in terminals
Israel | 12 May 2021

The Jerusalem Magistrates Court recently accepted a claim filed against the Israeli Aviation Authority (IAA) by a passenger who had been injured while colliding with another person at Ben-Gurion International Airport, which the IAA operated. The court ruled that the presence of ground stewards in the terminal – even if considered to be a high standard – could have prevented the collision between the plaintiff and the other person.

Statutory damages under Aviation Services Law cannot be claimed in class actions
Israel | 13 January 2021

In August 2020 the Central District Court dismissed several requests for the certification of class actions which had been filed against different airlines on the basis that statutory damages under the Aviation Services Law cannot be claimed in class actions. In all of the cases, the airlines' main argument was that according to the Class Action Law, the court cannot award compensation where proof of damage is not required.

Direct flight to final destination instead of delay in first segment not considered cancelled flight
Israel | 04 March 2020

The Tel Aviv District Court recently approved an appeal filed by Ukraine International Airlines and determined that the provision of alternative flight tickets resulting in a delay of less than eight hours following a delay in the first segment of a journey did not constitute the cancellation of a flight under the Aviation Services Law. The decision overturned a Small Claims Court decision and provides clarity on the meaning of a 'cancelled flight' under Israeli law.

Lightning damage to aircraft on incoming flights – Aviation Services Law special circumstances
Israel | 13 November 2019

In most cases, flights are operated by aircraft that arrive at an airport from a previous flight. As such, flights are sometimes delayed or cancelled due to a delay or cancellation of the previous flight. The Tel Aviv District Court recently denied a motion for leave to appeal filed by a passenger whose claim regarding the cancellation of his flight due to lightning damage to the aircraft which had occurred during the previous flight was denied by the Tel Aviv Small Claims Court.

What is considered a cancelled flight under the Aviation Services Law?
Israel | 14 August 2019

The Small Claims Court recently rejected two passengers' claim that their flight should be considered a cancelled flight under the Aviation Services Law. The case examined whether an airline should pay compensation for a missed connecting flight when passengers book two flights from the same company with a short connection time.

Courts underline passengers' duty to arrive at departure gate on time
Israel | 29 May 2019

Under the Aviation Services Law (Compensation and Assistance for Flight Cancellation or Change of Conditions), passengers who are denied boarding are entitled to compensation. However, in two recent district court judgments concerning passengers that were denied boarding, the courts found that passengers must arrive at the boarding gate on time. As this duty had not been fulfilled in either case, the airlines were not obliged to pay compensation.

When are technical malfunctions considered special circumstances?
Israel | 27 February 2019

The Beit Shean Small Claims Court recently declined a claim for compensation under the Aviation Services Law due to a delayed flight. The plaintiff had booked a return flight from Tel Aviv to Amsterdam with Arkia Airlines, which arrived in Amsterdam late after a nine-and-a-half-hour delay due to a technical fault. The court dismissed the claim and found that Arkia had proved that the technical malfunction had been caused by a fault in the aircraft's wing shelving, which had been beyond the airline's control.

Aviation Services Law does not apply to domestic flights outside Israel
Israel | 28 November 2018

The Tel Aviv Small Claims Court recently declined a passenger's claim for compensation against Qantas and Worldwide Travel and Tourism Ltd, concluding that as the flight in question was a domestic flight within New Zealand, Israeli law did not apply. The court stated that a 'flight operator' is defined in Clause 1 of the Aviation Services Law as an operator that operates flights to and from Israel. Therefore, the law does not apply when connecting flights to Israel are operated by a different airline.

Passenger's responsibility to arrive at departure gate on time
Israel | 25 July 2018

The Tel Aviv Magistrates Court recently declined a passenger's claim that Turkish Airlines should compensate him for being denied boarding. The court concluded that the plaintiff had failed to arrive at the departure gate on time and that he had known, or should have known, the final boarding time for passengers.

Duty to file complaint for baggage delay within period set by Montreal Convention
Israel | 28 February 2018

The Jerusalem Small Claims Court and the Netanya Small Claims Court both recently dismissed compensation claims for baggage delays, as the passengers did not comply with the Montreal Convention, according to which a complaint must be submitted within 21 days from the date of receipt of the baggage. However, the latter court ordered the airline to cover the plaintiffs' expenses, holding that the plaintiffs had clearly approached the court in good faith and that the airline's conduct had been inappropriate.

What is considered an 'accident' under Montreal Convention?
Israel | 13 December 2017

The Tel Aviv Magistrates Court recently declined a passenger's claim for bodily injury damages after it concluded that the event which was the subject matter of the claim was not considered to be an 'accident' as defined by the Montreal Convention. The plaintiff had filed a claim against El Al, arguing that he had been injured after eating a cake served to passengers.

Interpretation of cancelled flight under Aviation Services Law
Israel | 11 October 2017

The Rehovot Magistrate Court recently ruled that a flight that had departed on time, but been forced to return to the point of departure following a five-hour flight due to technical malfunctions, was a cancelled flight in accordance with the Aviation Services Law. Although there is no binding precedent, the courts have – in lower-instance decisions concerning the law – applied it in cases where the circumstances did not meet the literal interpretation of the law regarding cancelled flights.

Montreal Convention prevails over local law on limitation period
Israel | 09 August 2017

The Jerusalem Magistrates Court recently dismissed a claim for bodily injury caused to a passenger during a flight, as the claim had been filed more than two years after the plaintiff had reached his destination. The court referred to the Montreal Convention and the Carriage by Air Law, which provide that the right to a claim will be extinguished after a two-year period, despite the local Limitation Law providing a seven-year limitation period from the date of an admission of liability.

Skyfail: technical malfunction which delayed flight considered special circumstances
Israel | 17 May 2017

Since 2012 various lower court judgments have held that technical malfunctions which cause delays or cancellations to flights are not considered 'special circumstances' which exempt the carrier from paying the monetary compensation set by the Aviation Services Law. However, the Netanya Small Claims Court recently denied a claim and determined that a technical malfunction in an aircraft which caused a flight delay constituted special circumstances.

Montreal Convention does not apply to internal flight in Spain
Israel | 04 January 2017

The Petach Tikva Small Claims Court recently held that the Montreal Convention did not apply to an internal flight between two destinations in Spain, and that an Israeli court had jurisdiction to hear the claim. The court held that the convention does not apply in the case of an internal flight where the place of departure and destination are in the same country.

Compensation for flight downgrade under Aviation Services Law
Israel | 08 June 2016

The Tel Aviv Magistrate Court recently dismissed a claim based on the Aviation Services Law 2012 for compensation due to a downgrade in respect of a flight ticket purchased with flight points. The court addressed significant issues in its decision, including the right to compensation for passengers who did not pay for their flight ticket and whether full or partial compensation should be paid for a downgrade on only one flight segment.

Severe weather conditions constitute special circumstances under Aviation Services Law
Israel | 23 March 2016

The Tel Aviv Small Claims Court recently ruled that the cancellation of a flight due to severe weather conditions constituted special circumstances under the Aviation Services Law and rejected passenger claims against Delta Airlines. The law provides that passengers are ineligible for financial compensation if an operator can prove that a flight cancellation was due to special circumstances beyond its control.

Exclusive claim under Montreal Convention and claims against third parties
Israel | 02 September 2015

The Tel Aviv Magistrates Court recently declined a motion to dismiss a claim (with prejudice) filed against the Israel Airport Authority for bodily injury caused to a plaintiff while disembarking an aircraft. The court analysed whether the exclusive claim provision set by the Montreal Convention prevented an injured party from filing a claim against other third parties.

Implementation of Warsaw Convention in case of bodily injury
Israel | 24 June 2015

The Tel Aviv Magistrate Court recently ordered Continental Airlines to compensate a passenger for bodily injuries sustained while on board one of its aircraft. The court held that the accident occurred due to an unexpected event external to the plaintiff, and therefore lifted the plaintiff's burden to prove that it was compensable damage as defined in Article 17 of the Warsaw Convention.

El Al ordered to indemnify passenger for injuries sustained during take-off
Israel | 22 April 2015

The Tel Aviv Magistrate Court recently handed down judgment in Arie Goldman v El Al Airlines and obliged El Al to indemnify the plaintiff for bodily injuries sustained during take-off. El Al denied liability based on Article 21 of the Warsaw Convention and argued that the plaintiff should bear total liability as he acted contrary to the airline's instructions.

Court rules that mental anguish is not recoverable under Montreal Convention
Israel | 14 January 2015

The Ramle Magistrates Court recently accepted part of a claim filed against El Al Israel Airlines for direct damages sustained as a result of the late arrival of baggage. However, the court rejected the plaintiffs' claim for mental anguish caused by the delay under the terms of the Montreal Convention.

Dispute over payment for excess baggage
Israel | 08 October 2014

The Magistrates Court of Kiryat Gat recently handed down a judgment in Svetlana Podvinski v EL AL Airlines. The court ordered EL AL to compensate a passenger who had refused to pay for 9 kilograms of overweight baggage and, as a result, remained in Belarus until she found an alternative flight one week later.

Limitation and extinguishment in court rulings
Israel | 11 June 2014

In recent judgments handed down by two small claims courts in Tel Aviv and Hakrayot, the courts accepted the defendants' argument that claims filed against them were time barred. In the second case the court stated that the two-year limitation period is absolute and cannot be changed based on the circumstances detailed in the General Limitation Law, as this may alter the limitation period for filing claims.

Is cancellation of domestic flight cause for mental anguish claim?
Israel | 26 February 2014

A petty claims court recently awarded a plaintiff compensation for mental anguish, even though no direct losses were proven. The court stated that on certain occasions it is appropriate to award damages for mental anguish to passengers – for example, when declining such compensation would lead to unjustified enrichment of the carrier or would frustrate the object of the law and the Montreal Convention.

Court finds technical malfunction not special circumstance for exemption
Israel | 20 November 2013

Since the law on the assistance and compensation given to passengers whose flights are delayed or cancelled came into force last year, the Israeli courts have dealt with a number of claims based on its provisions. In one such case, the judge examined the basis for the special circumstances under which an air carrier will be exempt from paying compensation to passengers following a flight delay.

Court declines Virgin Atlantic's forum non conveniens request
Israel | 24 July 2013

The Magistrates Court of Tel Aviv recently declined Virgin Atlantic's request to stay the proceedings against it and rejected its argument that the Israeli court was not the appropriate forum to hear a claim filed against it by Israeli citizens. Virgin Atlantic had argued that according to the 'majority of links' test, the claim should be heard in London; the plaintiffs instead argued that most of the ties connected the claim to the Israeli court.

Court finds negligence does not constitute cause of action
Israel | 22 May 2013

The Magistrates Court of Tel Aviv recently stated that negligence did not constitute a cause of action under the Warsaw Convention and the Carriage by Air Law. The court accepted the argument that the "occurrence which caused the damage" took place while the shipment was no longer under the control and supervision of the carrier. The case centred on failure to store a shipment under refrigeration while awaiting collection.

Court reconfirms payment for leasing counts as 'reward' under Warsaw Convention
Israel | 27 February 2013

The Tel Aviv District Court was recently requested to reconsider a case involving the application of the Warsaw Convention when interpreting the term 'for reward' in relation to the crash of a helicopter that had been leased. On hearing the additional evidence presented by the parties, the court concluded that the Warsaw Convention was indeed applicable to the flight and dismissed the claim as time barred.

Arbitration clause ignored by both parties deemed void
Israel | 28 November 2012

The Supreme Court recently ruled that although a general sales agent agreement may include an arbitration clause, when the parties ignore the clause and take actions that indicate their unwillingness to apply it, this stipulation will be considered void. A general expression of willingness to satisfy an arbitration clause is insufficient if a party's actions reveal otherwise.

Who is the carrier's agent? Court reverses first instance decision
Israel | 29 August 2012

The Tel Aviv District Court recently reversed a 2010 magistrates court decision in which it had been decided that Maman Cargo (an airport warehouse) was the carrier's agent, in a case relating to shipments stolen in transit. The district court decided that it was sufficient that Maman's services were compulsory for aircraft companies in order for the Warsaw Convention not to apply thereto.

Flight delay: Tel Aviv District Court rules on burden of proof
Israel | 20 June 2012

The Tel Aviv District Court, in an appeal, recently ordered Austrian Airlines to compensate plaintiffs following an unreasonable flight delay, which had been caused by damage to the pilot's cockpit window. The court concluded that the appellants had proved the delay and further ruled that the carrier had not proved its defence, as it had provided no proof relating to measures taken to trace the fault in advance.

Court rules on application of Warsaw Convention to gross negligence
Israel | 28 March 2012

In a recent case the Acre Magistrates Court considered whether, under the Warsaw Convention, an airline was liable for damage to a passenger's luggage during transit. After assessing the case the court applied Article 25 of the convention and determined that the claim under consideration was not subject to the limitation of indemnity provided for by Article 22 of the convention.

Court confirms that local law cannot exceed two-year limitation period
Israel | 09 November 2011

In a recent decision the Petah Tikva District Court considered the interpretation of Articles 29(1) and 29(2) of the Warsaw Convention in Israel. A subrogation claim had been filed by the National Insurance Institute against an aircraft carrier. The district court declined the motion and held that the two-year limitation period set by the convention is an absolute provision which may not be extended by the provisions of local law.

Court imposes full damages for carrier's liability for passenger's injury
Israel | 06 July 2011

In a recent judgment by the Tel Aviv Magistrates Court, the court accepted a bodily injury claim filed by a passenger who was injured when sliding down an evacuation slide that had been deployed after smoke was observed in the aircraft after landing. Despite the fact that the court had applied the Warsaw Convention to the flight, the compensation to the plaintiff was not limited according to the provisions of the convention.

Delayed flight - cause for compensation on grounds of mental anguish
Israel | 23 March 2011

The Rishon Le-Zion Magistrates' Court recently handed down judgment in a case involving eight claims filed by passengers as a result of a 17-hour delay in a flight from Israel to Turkey. Some of the passengers decided not to take the delayed flight and thus claimed for a full refund; other passengers took the delayed flight and claimed for damages (mainly for mental anguish) caused by the delay.

Is the Warsaw Convention's two-year limitation period subject to extension?
Israel | 24 March 2010

In 2001 a Siberia Airlines plane was hit by a Ukrainian Army rocket and crashed over the Black Sea. In 2008 the Tel Aviv District Court dealt with the issue of whether the two-year limitation period provided under the Warsaw Convention may be extended based on the Israeli Law of Limitation 1958. The court ruled that under unique circumstances it is possible to extend the convention's short prescription period.

Does payment for leasing count as 'reward' under the Warsaw Convention?
Israel | 16 December 2009

In a recent judgment the Tel Aviv District Court interpreted the term 'for reward' when applying the Warsaw Convention to the crash of a helicopter which had been leased. The court dismissed the claim against the aircraft operator and its insurers due to the fact that the two-year limitation period had elapsed before the claim was filed.

Agency Relationships between Carriers and Travel Agencies
Israel | 28 October 2009

In a recent case the plaintiff had purchased tickets through a travel agency to fly with EL AL Israel Airlines. The price had been calculated in Israeli shekels according to the 'cash rate', rather than the lower 'transfers and cheques rate'. The plaintiff alleged that there was an agency and trust relationship between the travel agency and the carrier, and that thus the travel agency's actions should be attributed to EL AL.

Court Considers Applicability of Warsaw Convention to Freight Forwarders
Israel | 15 April 2009

The liability of an air carrier is provided for under the Warsaw Convention, as enacted into Israeli law. However, is the liability of a freight forwarder also governed by the Warsaw Convention? In a recent decision the Tel Aviv Magistrates' Court referred to the applicability of the two-year limitation period under the Warsaw Convention to a claim against a freight forwarder which had not issued an airway bill.

Multinational Accidents - Which Law Should Apply?
Israel | 04 March 2009

Air accidents inevitably raise a number of complex issues, including the issue of jurisdiction. Where the Warsaw Convention applies, a framework for jurisdiction is specified; however, where it does not apply, jurisdictional issues may become more problematic. This issue has been addressed by Israeli courts in several aviation claims arising from accidents that have occurred in non-commercial circumstances.

What Constitutes ‘Wilful Misconduct’?
Israel | 19 November 2008

In order to plead wilful misconduct as stated in Section 25 of the Warsaw Convention, a plaintiff must prove that the degree of negligence was high and the carrier was aware that its behaviour may cause damage, yet was indifferent to this result. This update looks at three recent cases in which airlines were accused of wilful misconduct.

Environment & Climate Change

Class action for bodily injury due to environmental pollution
Israel | 26 April 2021

A non-profit organisation filed a claim and a motion to certify the claim as a class action against 30 plants in the Haifa Bay region, arguing that the plants polluted the environment and caused bodily injuries to the class members who were exposed to the hazardous materials which the plants emitted. The respondents held that it was impossible to handle a claim for bodily injuries caused by environmental pollution in a class action procedure. A court has declined the respondents' motion to strike out the claim.


Impact of new controversial Civil Procedure Regulations on insurers: faster, stronger, costlier?
Israel | 02 February 2021

The new controversial Civil Procedure Regulations recently entered into force. Insurers' claims departments must study and understand these new procedures, which may cause increased uncertainty during the first years of implementation. In the meantime, plaintiffs – including insurers in subrogation claims or claims for contribution – must prepare their claims more thoroughly with all supporting documents and opinions.

Lack of safety measures does not repudiate coverage as long as insurer has collected premium
Israel | 20 October 2020

A recent case dealt with the question of whether an insured is entitled to insurance benefits for the loss of their car by theft when it lacked the security measures required by the insurer. The Insurance Contract Law enables the award of partial benefits (Article 18), but in this case the insurer presented no evidence to support the application of this remedy. Thus, the court ordered the insurer to pay the full claim.

Foreign insurers' right of subrogation – time for revision?
Israel | 11 August 2020

In November 2017 the Supreme Court approved a district court's decision that a foreign insurer which is not licensed under the Supervision Law is not entitled to file a subrogation claim in Israel. Notably, the Supreme Court is expected to readdress this decision in the near future. In view of its problematic outcome, it is hoped that the court will take this opportunity to reconsider its position and set a new and fairer precedent.

Insurance class actions due to COVID-19 pandemic
Israel | 30 June 2020

Has the COVID-19 pandemic led to the filing of insurance class actions which are typical of such crises? This article discusses class actions relating to motor, business and apartment insurance based on the allegation that the insureds paid monies (eg, premiums) for a period during which they did not enjoy any or full consideration for these payments.

COVID-19 and insurance litigation: current and expected trends
Israel | 14 April 2020

The outbreak and spread of COVID-19 in Israel is affecting businesses and the movement of individuals, as well as significant reductions in commercial activity. This article examines how COVID-19 will affect insurance litigation and what can be expected in the long term.

Subrogation claims by foreign insurers: contradictory district court decisions
Israel | 11 February 2020

The Haifa District Court and the Tel Aviv District Court recently issued conflicting decisions on the question of whether foreign insurers can file subrogation claims through their insured after paying the insured insurance benefits. In each case, the alleged tortfeasor requested that the court strike out the foreign insurer's claim, arguing that the latter had no right to file the claim in Israel as it was a non-admitted insurer.

Insurance, diamonds and fraud: court declines insured's appeal regarding fraudulent jewellers block claim
Israel | 27 August 2019

The Supreme Court recently declined an appeal filed by an insured and several companies controlled by him against the insurers Allianz Versicherungs, Menorah Mivtachim Insurance Company and HDI-Gerling Industrie Versicherungs. The insurers had argued and proved in the district court that the claim was fraudulent. The Supreme Court stated in the appeal that the factual basis determined by the district court was sufficient to conclude that the insured event had not occurred.

How does insured's fraudulent claim affect third-party insurance rights?
Israel | 21 August 2018

The Supreme Court recently examined whether Article 25 of the Insurance Contract Law, which discharges an insurer of liability where an insured or beneficiary submits a fraudulent claim, also applies to third-party claims made in good faith. The court's decision clarifies that fraud by an insured will also affect bona fide third-party claims and that the total discharge of an insurer does not require a causal connection between the fraud and the insurer's liability to be proven.

Is groundwater flooding a foreseen event in a construction policy?
Israel | 23 January 2018

In a recent Supreme Court case, the insurer argued that it had been known that groundwater existed at a construction site before work commenced. Any damage caused as a result of groundwater was therefore foreseeable and not covered. The insured denied this and claimed that the insurance policy included no exclusion for groundwater damage. The court examined the contract's language to search for the contract's purpose based on the parties' intention before the insurance event.

Court declines jewellers' block claim, accepting argument of fraud
Israel | 24 October 2017

The Central District Court recently declined a jewellers' block policy claim after the insurers proved that the claim had been filed with fraudulent intent. The case concerned an Israeli diamonteer who claimed that $10 million worth of diamonds had been stolen from him under the threat of violence. However, following an investigation by the insurers, it was revealed that a number of the stolen diamonds were still in the claimant's possession after the alleged robbery.

Failure to implement risk mitigation measures results in dismissal of insurance clause
Israel | 30 May 2017

Before the Insurance Contract Law 1981 was enacted, failure to take protective measures could lead to a complete loss of benefits. However, following its entry into force, most court rulings have applied Article 21 of the law, which provides that if the insured fails to take risk mitigation measures as stipulated in the insurance contract, the insurer may be entitled to reduce the insured's benefits or even be discharged from liability.

Supreme Court examines whether non-admitted insurer can file subrogation in its own name
Israel | 21 February 2017

The Supreme Court recently tackled the question of whether a non-admitted insurer is entitled to file a subrogation claim in Israel in its own name. The court upheld the Central District Court judgment which approved a motion to strike out a subrogation claim. The judgment creates a distinction between the procedure by which an admitted or non-admitted insurer can file a claim against a party responsible for loss or damage.

Does non-disclosure discharge insurers from liability?
Israel | 29 November 2016

In a recent case, the plaintiff did not disclose previous insurance claims when asked to do so during a pre-contract phone call. However, the court rejected an allegation of fraudulent intent against the plaintiff and did not award the remedy available to the insurer of reducing insurance benefits in proportion to the additional premium which would have been charged had the full facts been known, as the need for an additional premium was not proven.

Dismissal of claim filed by a special manager against D&O insurer
Israel | 09 December 2014

Directors' and officers' (D&O) coverage litigation is rare in Israel. Coverage litigation raises issues that frequently require the attention of the insurers' claims departments. In a recent case the District Court of Tel Aviv denied the claim of a special manager, finding that he had not proved that any D&O of the company was negligent or had committed any wrongful act.

Insurer may be liable to pay damages for negligent rescue
Israel | 25 March 2014

In a recent case involving the sinking of a vessel in the Sea of Galilee, the insurer of a marine policy was discharged of liability under the policy. However, the insurer was found liable in tort under Israeli law for damages caused to the insured due to negligent acts by the insurer in salvaging the vessel. The insurer was ordered to pay the plaintiff the full value of the vessel, plus loss of profits and expenses.

Extra contractual damages imposed on insurer
Israel | 28 August 2012

A recent Supreme Court judgment that awarded damages to an insured for consequential loss due to late payment of insurance benefits beyond the policy limit has shaken up the Israeli insurance market. The court ruled for the first time that an insurer that paid the insured on a date later than that set by the Insurance Contract Law, and thus caused a loss of profits for the insured, should pay for said loss.

What is damage to 'tangible property'?
Israel | 28 September 2010

The Jerusalem Supreme Court of Appeals recently determined that a product liability policy covers only physical damage caused to third-party property and not financial damages allegedly sustained thereby. Therefore, expenses accrued to detect a flaw or crack in pipelines - being merely a financial loss - were not covered under the policy in this case.

Commissioner of Insurance: Contributory Negligence Not Applicable
Israel | 20 May 2008

Until recently, Israeli insurers used the doctrine of contributory negligence to reduce insurance benefits paid out to insureds which contributed to the occurrence through negligence or breach of policy precaution terms. The commissioner of insurance recently published his position paper regarding the use of the legal theory of contributory negligence in insurance claims.

What is 'Damage to Tangible Property'?
Israel | 12 February 2008

In a case involving a defective oil pipeline, the Tel Aviv District Court accepted that a product liability policy was intended to cover only physical damage to third-party property as a result of defects in the insured product. Therefore, damages to the product itself and/or costs and expenses relating to its replacement, including costs incurred to trace the defects in the product, were not covered.

Must Physical Loss be Sudden?
Israel | 05 October 2004

The standard contractors' all risk policy requirement is that loss or damage should be physical, accidental and unexpected. According to a recent Supreme Court judgment, there is no need to distinguish between physical damage that occurred as a result of a sudden peril and physical damage that occurred as a result of a gradual peril.

Supreme Court Precedent Heralds New Liability for Lost Years
Israel | 04 May 2004

The Supreme Court has agreed to acknowledge additional heads of damage for injured persons and estates. Previously, an individual whose life expectancy was shortened as a result of a wrongful act could recover compensation for loss of earnings regarding his remaining life expectancy only; compensation for loss of earnings in the so-called 'lost years' was not awarded.


New controversial Civil Procedure Regulations: faster, stronger, costlier?
Israel | 02 February 2021

The new controversial Civil Procedure Regulations recently entered into force. The Ministry of Justice initiated this reform, declaring that it aims to make the judicial process more efficient and transparent. However, under the regulations, litigation will be costlier and the courts' stringent attitude may lead parties to mediate and settle claims instead of filing them in court.

Partial settlement agreement precludes unsettling defendant from sending third-party notice
Israel | 17 December 2019

In a recent case, a settlement agreement was concluded between a plaintiff and several defendants that were parties to a claim, which included an allocation of liability and the amount of damages. As a result, the claim against the settling defendants was dismissed. This judgment solves a problem often faced by parties to a tort claim in which one co-defendant objects to a settlement offer and the negotiations are halted as the agreeing defendants fear being exposed as a third party by the objector.

Product Regulation & Liability

Overseas product manufacturers may be liable for damages caused in Israel
Israel | 07 February 2019

Under a recent amendment to the Civil Procedure Regulations, manufacturers that produce products outside Israel can still be sued in Israel. As a result, a claim against a foreign defendant can be dealt with by an Israeli court following a service of suit issued by a court outside Israel. This service applies Israeli jurisdiction to the foreign defendant, thus obliging it to file a defence to the claim in an Israeli court and attend the proceeding as a defendant.

Settlements in Class Actions: The Need for Court Approval
Israel | 24 July 2008

Class actions against manufacturers of various products are filed for a number of reasons - for example, misrepresentation regarding the ingredients of the product, differences between actual weight and declared weight and poor product quality. In most cases manufacturers reach settlement agreements with the claimant and its lawyer. Now such settlements require court approval.

What is 'Damage to Tangible Property'?
Israel | 07 February 2008

In a case involving a defective oil pipeline, the Tel Aviv District Court accepted that a product liability policy was intended to cover only physical damage to third-party property as a result of defects in the insured product. Therefore, damages to the product itself and/or costs and expenses relating to its replacement, including costs incurred to trace the defects in the product, were not covered.