The High Court of Justice on Tuesday took a step toward relaxing legal curbs that had prevented civilians harmed by "non-belligerent" Israel Defense Forces operations in the territories from demanding state compensation.

The ruling cancels a portion of the "Intifada Law," which exempts the state from paying compensation for harm incurred by civilians as a result of IDF operations in the West Bank and Gaza Strip, in areas considered "conflict zones" by the Defense Ministry.

The clause was meant to clear the state from the responsibility for compensation for damages caused directly or indirectly by security forces operations in these areas.

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The ruling was one of several judgments written by former Supreme Court president Barak expected to be presented this week, including additional rulings relating to controversial security issues.

These include rulings on a petition to abolish Israel's assassination policy in the territories; on the reduction of the IDF's safety zone for shelling the Gaza Strip; and on the legality of the Matityahu East neighborhood built on land that used to be part of the West Bank village of Bil'in.

Human rights organizations praised the court's decision, saying that lawsuits filed by private citizens against the IDF will be able to proceed in the legal system.

The High Court's decision to cancel the clause was spurred by an initiative on the part of nine human rights groups led by the 'Adalah' organization. The groups argued that the law is "racist and inhumane" because it frees the state from the responsibility to pay compensation to civilians hurt in non-belligerent IDF operations carried out since September 2000.

Nonetheless, the judges decided to preserve a clause added to the law in July 2005, which stipulated that the state does not have to pay compensation for damages caused in military operations since September 2000, when the damage was suffered by "citizens of enemy states and workers or members of terrorist organizations."

The ruling will go into effect immediately in said areas of the West Bank and Gaza Strip, and will be applied retroactively. The Justice Ministry confirmed that the changes would go into effect at once and will allow for all of the West Bank and Gaza to be considered one "conflict zone."

Nearly all of the West Bank and Gaza was officially declared a combat zone by former defense minister Shaul Mofaz for the majority of time since September 2000, therefore making the IDF virtually exempt from responsibility for damages caused there.

The ruling would apply to these conflict zones as well, opening the door to legal action over events which happened in these areas in years previous.

Reactions to the ruling
The Israeli Arab human rights organization 'Adalah' issued a statement on Tuesday saying they "welcome the ruling of the High Court which attacks the racist laws of the Knesset"

MK Mohamed Barakeh (Hadash) praised the "important decision that will allow the victims of the occupation to sue the state for compensation."

Meretz MK Haim Oron stated, "It's a shame that the Knesset coalition repeatedly makes decisions which the High Court must then fix."

MK Michael Eitan (Likud) turned to the speaker of the Knesset to request a postponement of the High Court decision, saying it "threatens to destroy the fabric of Israeli democracy and the ability of the security services to operate effectively."