Comprehensive Guide to Small Claims Court
The Complaint

Introduction

This document is a technical guide to the small claims court. In this document you will learn the main legal rules for submitting a complaint in the small claims court.

In a separate document, I will guide you in writing an effective claim or defense.

Small claims court in Israel are not similar to those in the United States or Europe. In order to understand how the system works, this short guide will be divided into sub- categories to make it easier to navigate.

Anyone can be sued though the small claims court, but not everyone can sue through this court. Only private citizens can sue through the small claims court but not companies, municipalities, government ministries and any other kind of organizations.

This court (Tribunal) is incorporated in the Magistrate’s Court (Inferior Court) and any decision, judgment or resolution can be appealed within 15 days of the final decision. The appeal takes place in a higher court (“Beit Mishpat Mechozi”).

Another issue concerns legal representation. In this court you cannot be represented (when being sued or suing) by a lawyer. You are on your own, except in cases when the plaintiff or the defendant has a specific problem, such as language. In this case, the judge may permit a relative to aid in the procedures (but you won’t know until the hearing itself starts in court).

Unfortunately, when suing a company, government or any other entity (not a private individual), you may find yourself conducting the case against a lawyer who represents the other side.

How come? If the company or the entity has in its employ a lawyer, this employee may represent the company, but you cannot do this.

It is not permissible to sue more than five times a year in the same court.

The “bad news” for new immigrants is that you can present your case only in Hebrew or Arabic, but not in English or any other language. If you need an interpreter you have to ask the judge’s permission when filing your complaint.

It is strongly advised to use the services of a lawyer to write an effective complaint but never write a defense without a lawyer.

The Maximum Amount you can Sue for and How Much it will Cost You

Unlike in the United States, there is a court fee for every case. There is also a minimum fee and there is a maximum amount of money you can sue for.

The maximum amount you can sue for, as of January 2009, is 30,100 shekels. This amount is adjusted each month according to the index.

The court fees are: One percent of the total amount of your claim but no less than 50 shekels in any case. The court fees must be paid (up to 235 shekels) using government stamps which can only be purchased in the post office.

Where the Small Claims Courts are Located

Wherever there is a “Beit Mishpat Shalom” (this is the lowest court in Israel) there will be a small claims court as well.

There are legal rules concerning in which city the complaint must be filed. The location is not according to the plaintiff’s address, but the opposite, it is according to the defendant’s address or the location where the actual alleged case was created. For example, if you live in Jerusalem and you bought a computer in a store in Tel Aviv. You find it is not the one you asked for and the store refuses to exchange or replace it. The company itself is located in Haifa. You can sue either in Tel Aviv or Haifa, but not in Jerusalem.

There are only two exceptions: banks and insurance companies. If you sue one of these institutions, you can choose any location in the country which is most convenient for you. This usually happens in car accidents. If you are suing the driver and the insurance company (as it should be) you can choose any location.

The Minimum Details which Must Appear in the Claim

You must include your and the defendants full name, ID or passport number, address, phone numbers and fax number if you have one. You are not allowed to use a post office box as an address. If the defendant is a company or any kind of entity, you must have their special ID number. A company always has a company number (mispar chevra).

For example, if you purchase a shirt in “Koby’s Men’s Fashion” you cannot sue Koby’s Men’s Fashions, because this is not a company but just a commercial name. You have to know who owns this store (it may be Mr. Koby) and sue him personally with his ID number. Otherwise, you will not be able to present your case.

The Burden of Proof

The full burden of proof is always and only in the plaintiff’s shoulders and it is not on the defendant to proof what you charge, claim or argue. Be brief, clear, chronological and consistent.

Your Day in Court

Your day in court has arrived. All sides must be present in the court room on time and it generally takes a long time to be heard.

It’s advised to “visit” a court room beforehand. Go to the nearest tribunal and “learn” how it works. All cases are open to the public and generally you can find a seat (don’t go before 9:30).

Forms used for Plaintiffs and Defendants

You are not obligated to use the forms recommended by the court, but from these forms you can learn the outline of these documents. You are not obligated to type your legal documents but remember that the Judge is a human being and if you make the case as clear as possible, you have a better chance of being understood. In any case, if you decide to have your complaint handwritten, it must be in a clear handwriting, not very crowded and as short as possible (it should be brief in any case).

The case must be filed with at least three copies depending on how many defendants are involved.

Even before the case has started the judge can decide that this specific case should not be decided in the Small Claims Court. In this case, without asking for your permission, the case will be transferred to the Magistrate’s Court (Inferior Court) and both sides will be notified. At this point you should seek legal advice as soon as possible.

Here is a link to the forms you will need for your complaint.

The Judgment

This is always done on the spot when both sides have finished presenting their respective cases.

There are many cases in which the judge will tell the sides his opinion (Per Curiam Opinion) even before the sides start presenting their cases. My advice is simple: Listen very carefully to the judge! He is telling each side what will probably be decided at the end of the case.

In Israel the losing party will have to pay the expenses of the case to the winning party, in most cases. The expenses paid are the sole decision of the judge.

Finally you have the desired decision in your hands and you have won. It is not necessarily so! All you might have is a piece of paper if the other side can’t or will not pay or even can’t be found to be charged. We will deal with this issue in another document – The Executioner Office.
 

Sincerely,

Tzvi Szajnbrum, Attorney at Law