In today's global world, disputes between companies from different countries are increasingly being resolved through international arbitration. Adv. Jacob Enoch, a senior partner at Firon & Co. and the head of its International Arbitration and M&A departments, is one of Israel's leading experts on international arbitration.
New commercial arbitration laws went into effect in Israel in February 2024, spurring a surge in the international arbitration trend. Since then, this field has become one of Israel's most rapidly developing legal practices, says Adv. Enoch.
"When conducting international business, usually a party would be reluctant to submit itself to the jurisdiction of a court, an arbitration institution or an arbitrator that is nationally associated with its counterparty. It's obvious that there would be some apprehension about bias," he notes.
In order to mitigate potential bias, arbitration within a recognized international institution is an ideal solution. However, it's important to be aware of the fact that the rules and procedures in these institutions are significantly different than those in Israel, and of course the proceedings are typically carried out in English.
Litigators representing clients in international arbitration cases must be familiar with a large body of unwritten rules and practices that apply in such proceedings. Often, litigators who are highly experienced in their home countries assume that the litigation process is similar in international arbitration and that the laws are more or less the same as those in individual countries. In actual fact, the process is quite different, Adv. Enoch elaborates, adding that when litigators assume that the process is similar in every country, the client usually ends up paying dearly for this wrong assumption.
Although any qualified lawyer in any jurisdiction can technically engage in international arbitration, the process is in fact very different than typical local litigation – including the basic procedures, the way the different submissions are drafted, the way the witnesses must be prepared and how the cross-examination must be carried out, as well as the significant body of unwritten rules and practices which are also different. As a result, Adv. Enoch highly recommends choosing a lawyer with the proper expertise and experience.
In addition to stressing the importance of being represented by a litigator with the appropriate background, Adv. Enoch advises clients involved with commercial disputes of an international nature to "choose the arbitration institution wisely. You need to be familiar with its rules and its fee structures."
Adv. Enoch has served as an international arbitrator on various occasions, including in ICC arbitrations. This gives him the benefit of understanding the perspective of the advocate as well as that of the arbitrator. In addition, he served for many years as a member of the ICC's Commission on Arbitration and ADR, and has been involved in its processes, including the amendment of the relevant rules. As such, he has a strong understanding of the rules and the process behind the formulation.
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