Joining additional parties to arbitration proceedings is an issue that frequently arises in the conduct of arbitrations, both domestic and international.

In a recent decision, the Israeli Supreme Court held that consent constitutes the central – and, in practice, the exclusive – basis for joining parties who are not signatories to an arbitration agreement.

Departing from earlier case law on this issue (and from a practice that had gained traction in Israel), the Court clarified that non-signatories may not be joined to arbitral proceedings solely by reason of factors such as corporate control, group affiliation, commercial relationships, or considerations of procedural efficiency.

The ruling realigns Israeli law with the prevailing international arbitration principle that arbitral jurisdiction is founded exclusively on the parties’ consent, and underscores the importance of carefully drafting arbitration clauses and clearly defining the parties intended to be bound by them.

Review an article by Adv. Gidon Even-Or, Partner, and Adv. David Knoll, , published in Lexology’s International Arbitration Magazine: Click for reading

Israel Recalibrates_ The Israeli Supreme Court Restores Consent as the Central Foundation for Joining Non-Signatories to Arbitration – Lexology