Commercial Disputes and Mediation
Business disputes — between partners, shareholders, clients and service providers, contractors and subcontractors, or landlords and tenants — are well suited to mediation. Unlike litigation, mediation allows parties to maintain business relationships, negotiate practical solutions, and preserve commercial confidentiality.
Types of Commercial Disputes for Mediation
- Partnership dissolution and asset division
- Breach of commercial contract claims
- Landlord-tenant disputes under commercial leases
- Shareholder and family business disputes
- Construction and contractor payment disputes
- Intellectual property licensing disagreements
Enforceability of the Agreement
A commercial mediation settlement agreement is a binding contract under Israeli contract law. If one party fails to comply, the other can sue for breach of the settlement agreement. For additional enforcement security, the agreement can be submitted to a court for approval as a court order — after which it has the force of a judgment and can be enforced through the Enforcement Bureau.
Are commercial mediation agreements confidential in Israel?
Yes — mediation proceedings in Israel are confidential by law. Statements made during mediation cannot be used as evidence in court if the mediation fails. The final agreement itself is confidential unless the parties agree otherwise or it is submitted to court for approval as a court order. This confidentiality makes mediation particularly attractive for commercial disputes where public litigation could damage business reputation or reveal commercially sensitive information.
