The Advantages of Conducting Mediation in Israel Under the Singapore Convention

On July 22, 2024, the Israeli legislature enacted an amendment to the Courts Law [Consolidated Version], 5744-1984, strengthening Israel's position as a global center for mediation. This amendment empowers Israeli courts to recognize and enforce mediation agreements governed by the Singapore Convention on Mediation (the "Singapore Convention"), granting them the same legal status as Israeli court judgments, provided that the parties consent (the "Amendment").

The Singapore Convention offers a standardized approach to the recognition and enforcement of international settlement agreements achieved through mediation, ensuring that mediated settlements in commercial disputes between parties from different jurisdictions are legally binding and enforceable with minimal procedural hurdles.

Israel's accession to the Singapore Convention on August 7, 2019, and the Convention’s subsequent entry into force on September 12, 2020, marked a significant step toward making Israel a preferred jurisdiction for international mediation. Currently, fifty-seven countries have signed the Convention, with fourteen having completed its ratification process.

Prior to the Convention's adoption, mediated settlements were enforced solely as contractual obligations, subject to variations in local legal frameworks. The Convention overcomes these challenges by providing a uniform enforcement mechanism, enhancing certainty and efficiency in cross-border dispute resolution.

Key Advantages of Mediation Under the Singapore Convention in Israel:

• Enforceability and Legal Certainty: Mediated settlements now carry the same weight as court judgments, reducing enforcement challenges and increasing predictability for businesses.

• Time and Cost Efficiency: Mediation in Israel provides a cost-effective and expedient alternative to litigation and arbitration, allowing parties to resolve disputes efficiently.

• Global Recognition: Mediated settlements concluded in Israel are now more readily enforceable across multiple jurisdictions that have ratified the Convention, fostering confidence among international investors and businesses.

• Judicial Support with Minimal Intervention: Israeli courts have a clear mandate to recognize and enforce international mediated settlements, ensuring a streamlined and effective enforcement process with limited judicial discretion.

• Business-Oriented Approach: Mediation allows for flexible, commercially viable solutions tailored to the needs of the disputing parties, unlike rigid court-imposed rulings.

Implementation of the Amendment and Future Developments

With the Amendment in place, the previously proposed Courts Regulations (Implementation of the Singapore Convention with Regard to International Mediated Settlements), 5781-2021, are now expected to be enacted (the "Proposed Regulations"). These regulations will further solidify the practical enforcement mechanisms for international mediated settlements in Israel.

Israeli courts will generally recognize and enforce international mediation settlements unless specific grounds for refusal exist. These grounds, explicitly outlined in the Convention and the Proposed Regulations, include:

• Lack of legal capacity of one of the parties;

• The settlement being null, void, or unenforceable under the applicable legal framework;

• The settlement being non-binding, non-final, or subsequently modified;

• The obligations under the settlement already being fulfilled or unclear;

• The requested enforcement contradicting the settlement’s terms;

• The mediator’s serious violation of professional standards;

• Failure of the mediator to disclose circumstances affecting impartiality;

• Public policy considerations; or

• The dispute’s subject matter being ineligible for mediation under Israeli law.

Conclusion

By embedding the Singapore Convention into Israeli law, Israel has reinforced its commitment to alternative dispute resolution, positioning itself as a leading jurisdiction for international mediation. Businesses and individuals seeking efficient, enforceable, and globally recognized dispute resolution mechanisms will find Israel a favorable forum for mediation, ensuring both legal security and commercial flexibility in cross-border disputes.