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basis to assume that the interest of all members of the class will be represented and
managed properly and in good faith.
These requirements are examined by the court in the scope of a preliminary motion to
approve the action as a class action (motion for class certification), in which the court
examines whether the forgoing requirements are met. At such a preliminary stage, the
court examines the alleged cause of action on its merits with respect to both the legal
and factual aspects.
The enactment of the Class Actions Law has led to a substantial increase in the
number of consumer rights and product liability cases as well as to the significant
development of case law on consumer rights, duties of disclosure, duty to warn,
product labeling, and other matters.
In one of the most interesting product liability cases in Israel to date, it was discovered
in 1995 that an Israeli manufacturer of various food products added silicone
(dimethylpolysiloxane) to its low-fat long-life milk product in order to prevent foaming.
This was in violation of official standards and in contradiction to certain statements the
company previously made. There was no question that the addition of this substance
did not pose a real threat to the well-being of consumers. The manufacturer and some
of its officers were convicted of violating an official standard and misrepresentation
was filed, which was certified and approved by the Israeli Supreme Court in 2003, and
called for compensation of the class members for injury to their ‘autonomy of will’.
This was a precedent-setting decision that ruled that this type of damage is covered
by the definition of ‘damage’ in the Torts Ordinance, and is recoverable by way of a
class action.
Cross-border litigation in Israel
In response to international cross-border litigation extending into Israel, Israeli
litigation now features unique aspects of dispute resolution, both in substance and in
procedure. These include the international jurisdiction of Israeli courts, conflict of law
rules, enforcement of foreign judgments in Israel, international arbitrations and legal
co-operation between states in civil and commercial matters, to name just a few.
In cases where a multinational conglomerate is litigating in Israel, there is a level of
expectation to receive the highest quality of legal service and attorney attention
that matches other jurisdictions, particularly the US or EU. Both the Israeli legal
market in general, and our firm in particular, has adapted to this high standard. While
international law firms are currently legally permitted to operate in Israel, subject to
certain restrictions, such international law firms do not currently litigate in Israel. It is
largely left to domestic firms, such as ourselves, to handle the wide range of litigation
in the Israeli market..
The Israeli legal market has evolved to respond to the needs of a modernized
consumer society by, among other things, adapting and encouraging modern
and sophisticated forms of class and group actions, similar to US-style class
action lawsuits.