In Israel, if a contract requires mediation before arbitration, can we bypass mediation if the other side stalls

In Israel
Last Updated: Dec 16, 2025
I'm in a commercial dispute with a supplier. The agreement says mediation must occur before arbitration, but the other side wants to go straight to arbitration. Can Israeli law allow bypassing mandatory mediation or force arbitration anyway?

Lawyer Answers

Assaf Ben David

Assaf Ben David

Dec 16, 2025
Best Answer
Hi, I'm sorry to hear that you're in a dispute. The answer really depends on how the contract is worded. In general, and unless a contract is illegal, the courts will uphold what the contract states: meaning if it states that mediation is compulsory before arbitration, then the courts will send the parties to mediation. Regardless, most courts in Israel will refer the parties to mediation before 'discussing' the case - so either way it is best to start there (with mediation). Good luck
Sternberg & Co. Advocates

Sternberg & Co. Advocates

Dec 25, 2025
It may be argued that the arbitration clause is subject to the mediation clause, in a manner that requires exhaustion of the mediation process. However, such an argument must be raised without delay. Where neither party advanced, demanded, or timely raised any argument concerning mediation, the likelihood that priority will be given to the arbitration clause for the purpose of advancing the proceedings is high. In any event, the agreement must be examined as a whole, including the arbitration clause itself and the manner in which it was drafted, as well as the parties overall interests, including considerations of practicality and cost-effectiveness before adapting a position.
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