Beinisch Considers Creation of Special Economic Affairs Court

New court would be a major achievement for Ariav Committee

Supreme Court President Dorit Beinisch is considering accepting the Ariav Committee's recommendation and establishing a court specializing in economic affairs. In the past Beinisch has rejected the idea of such a separate court out of hand.

The proposed court would be a separate entity, run under the auspices of the Tel Aviv District Court.

Nevertheless, it would have its own judges who would hear only complex economic and financial cases. The present proposal is a compromise that would would leave the new court under the supervision of another court, without creating a new and totally independent one.

Such a court would have another advantage, as it would facilitate the training of a cadre of judges specializing in economic matters, and would greatly improve the efficiency of the legal system in such matters.

If such a special court is established, it will mark a major achievement for the Ariav Committee, headed by Finance Ministry director general Yarom Ariav.

The person who has been pushing most strongly for this recommendation to be accepted is the chairman of the Israel Securities Authority, Zohar Goshen.

The members of the committee, which was appointed to examine recent improvements in Israeli capital markets following the Bachar Committee reforms, feel that the inefficiencies of existing courts and the judges' lack of understanding of complicated financial matters are a major stumbling block in the country's attempts to improve its financial system and to become an international financial center.

The committee based its recommendation in part on the experience of a court in Delaware, which specializes in corporate law and has allowed the U.S. state to become a magnet for registration of companies from all over the world.

Beinisch has thus far refused to establish an economic court, as she feels specialized courts have yet to prove themselves.

Today there are separate courts in the country for debating traffic, family, labor and antitrust cases.

Beinisch made her views known in April in an interview with TheMarker, but later met with Ariav and Goshen and has now agreed to reexamine the issue.

The courts spokeswoman said: "The idea requires a change in accepted processes and involves changes in how work is divided up. Therefore, the proposal is being studied and a final position on the matter has yet to be agreed on."

Justice Minister Daniel Friedmann's spokesman responded that the matter was still being discussed, and only afterward would the minister voice his opinion on it.