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Why JAC Arbitration? Advantages for Palestinians 2 Israeli companies are the strong party, they impose court system and Israeli Law New choice JAC Arbitration Israeli Courts Israeli local arbitration JAC Arbitration International credibility ICA umbrella Lack of trust in the Israeli legal system Neutral sysem

Why JAC Arbitration? Advantages for Palestinians 3 Represented by Israeli law firms Represented by Palestinian, International or Israeli law firms Hearing by Israeli judges International, Palestinian & Israeli arbitrators High cost court fees (2.5%) Lower cost fees

4 Language HebrewLanguage English Governing law: Israeli law If not agreed, as determined by the arbitral tribunal (18(1)) Place of hearing: Israel Hearing in East Jerusalem Why JAC Arbitration? Advantages for Palestinians

JAC Jurisdiction Monetary Jurisdiction: the request shall not exceed 7M USD Territorial Jurisdiction: disputes related to Israel, the West Bank, the Gaza Strip and East Jerusalem Substantial Jurisdiction: the dispute is a business dispute 5

Special Arrangements with ICA Transfer of disputes to ICA in case one of the Jurisdiction Conditions is not met (6(3)(iii)) ICC hearings shall take place at the JAC Hearing Center in East Jerusalem, (6(3)(vii)), in accordance with the ICC International rules of arbitration Refer the appointment of one or more arbitrators to the ICA, which shall be in accordance with the rules of ICC as appointing authority (9(8)) 6

Arbitrators A national or resident of Israel, the West Bank, or the Gaza Strip, including East Jerusalem shall not be confirmed or appointed as a sole arbitrator or president of an arbitral tribunal (10(d)) The court may confirm or appoint persons as sole arbitrators or co-arbitrators and presidents of arbitral tribunals, provided that the court is satisfied with their sufficient experience (10(c)) 7

Representation before the JAC Parties to the JAC arbitration may be represented in the proceedings by any legal counsel Both parties can be represented by an Israeli, Palestinian or any International legal counsel 8

Terminology “Made” An award is “made” when it is rendered by the arbitral tribunal “Legal Seat” or “Seat” The “juridical home” of the arbitration Physical Location of Hearings Can be, but not necessarily, the same as the seat

Terminology “Annulled” An award is “annulled” when it is ruled null and void by a court at the arbitral seat “Enforced” An award is “enforced” when it is turned into a court judgment by a court other than a court at the arbitral seat

If the “legal seat” were East Jerusalem? Awards rendered would be “domestic” – Domestic Israeli awards under Israeli law – Domestic Palestinian awards under Palestinian law Lack the neutrality of international awards Two “competent authorities” – Possibility of inconsistent annulment decisions – Possibility of inconsistent arbitrator challenges

If the “legal seat” were East Jerusalem? Awards would not be enforceable outside of Israel – The United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards ensures enforceability of awards in signatory States – To be subject to the Convention, award must be “made” in a jurisdiction that is a signatory State EXAMPLE: An award in favor of a Palestinian party; Israeli party has no local assets but some property in the United Kingdom. Can the Palestinian party have a UK court enforce the award? – If legal seat is East Jerusalem, award not “made” in a New York Convention jurisdiction, so no enforcement under Convention

Consequences of the Paris Legal Seat Because the legal seat is Paris, award is “made” in France (a New York Convention jurisdiction) Therefore, arbitral award is enforceable in any State that is signatory to the Convention Palestinians get full advantages of the Convention, even though not a signatory State French arbitration law (not Israeli or Palestinian) applies to the arbitral proceedings (in addition to JAC Rules) No other connection to France No annulment in France (waived in the model clause and JAC rules) Enforcement of the award can (and will likely) occur locally in either Israel or Palestine

Waiver of Recourse Decisions of the JAC court regarding the jurisdiction shall be binding on the parties (6(3)(vi)) The decision of the JAC court as to the appointment, confirmation, challenge or replacement of an arbitrator shall be final (8(4)) Every award shall be binding on the parties. By submitting the dispute to arbitration under the rules, the parties shall be deemed to have waived their right to any form of recourse, including appeal, and set aside or annulment (35) 14