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series of sessions taking place over a period of several weeks or even months (the
absence of a jury makes this possible). In general, Israeli courts do not award punitive,
exemplary, or other non-compensatory damages (although some case law provides
that they are authorized to do so in a certain limited capacity), and damages awarded
are almost always calculated on a compensatory basis. Legal aid is available through
several procedures and organizations, state-sponsored legal aid as well as through a
pro bono program of the Israeli Bar Association.
Israeli law and procedure are well equipped to deal with a modern consumer society
in general and with respect to product liability in particular. Under Israeli law product
liability may arise under several areas of law, including tort, contractual liability, the
Consumer Protection Law, 1981 and the Defective Products Liability Law, 1980.
The Defective Products Liability Law
applies only to bodily injuries and does not
extend to indirect, consequential, or pure economic damages. It provides a non-
exclusive cause of action, and imposes strict liability on manufacturers to compensate
consumers who suffered bodily injury as a result of using their defective products.
The main purpose of this law is to protect consumers and facilitate their claims
for bodily injury by exempting them from proving any fault or negligent act on the
manufacturers’ part while at the same time providing the manufacturer with limited
defenses. Unlike in other jurisdictions, the remedies for breach of contract cover both
direct and indirect damages as well as pure economic damages. Likewise, the Torts
Ordinance provides compensation for both direct and indirect damages as well as
pure economic damages.
The two most relevant torts for product liability cases are negligence and breach of
statutory duty. The tort of negligence imposes liability on any person or entity that
performed a negligent act or omission that caused damage to any person or entity
towards which the former owes a duty of care. The tort of negligence is general in
nature and it may be applied in various circumstances and relationships, and is thus
shaped by the courts based on legal policy considerations, determining inter alia
in which circumstances a duty of care between the opposing parties exist, and the
acts or omissions which constitute negligence (namely, the acts or omissions which
constitute breach of that duty).
The Consumer Protection Law
imposes various obligations to consumers who
purchase products or services for personal, family or domestic use. This raft of
obligations include a prohibition on misrepresentation, duties of disclosure, duties
concerning product labeling and other similar types of duties and prohibitions. It
contains various post-sale duties, mainly with respect to warranty periods and terms;
repair of defects; technical service and more.
The Class Actions Law
2006 allows for the filing of class actions under various
circumstances, using an ‘opt-out’ mechanism, namely, any person or entity that
falls under that definition becomes a member of the class, unless they provide a
withdrawal notice (while the court is allowed, under special circumstances, to apply
an ‘opt-in’ mechanism). The filing of a class action is subject to the court’s approval
and discretion, and is subject to meeting several conditions: (1) the action must raise
material questions of fact or law that are shared by all members of the class; (2) there
must be a reasonable possibility that the legal or factual questions will be decided
in favor of the class; (3) a class action must be the efficient and fair way of resolving
the dispute under the circumstances of the case; and (4) there must be a reasonable