Originally from Collective Litigation in Europe: Law and Practice – Preview Page

1. INTRODUCTION

The Israeli experience with collective litigation is unique. Class actions—the primary form of collective litigation in Israel—have been available formally since 2006, with the enactment of Israel’s Class Actions Law, 5766-2006 (the 2006 Law). Subsequently, over the past two decades, the number of class actions filed in Israel rose exponentially, from just a handful to more than 1500 per year. Thus, while the Israeli experience is not a lengthy one, it serves as a prime example of how a flourishing practice of collective action litigation can be established in a matter of several years. 

A review of Israel’s short-yet-plentiful experience with class actions can provide interesting and useful insights on both the advantages and the disadvantages of collection action. On the one hand, the Israeli class action mechanism has clearly succeeded in creating sufficient tools and incentives for private entities to enforce consumer rights. On the other hand, one may argue that the Israeli class action mechanism has overstretched, ushering in collective actions which are at times frivolous, opportunistic and indeed, abusive. Thus, the Israeli experience may shed light on the path and obstacles associated with striking a balance between consumers’ access to justice and adequate safeguards from abusive litigation.

2. ISRAELI LAW—A BRIEF OVERVIEW

Before addressing Israeli class actions in more detail, it is important to have a basic understanding of the Israeli legal system. Israel has a well-developed legal system, which was inherited in large part from the British Mandate and therefore originally drew upon many of the basic tenets of the common law tradition.