Injunctions, Temporary Attachments, and Urgent Remedies - The Tools That Can Decide a Lawsuit Before It Even Begins

• Interim relief can be granted before a lawsuit has even been filed-and also ex parte, meaning without the other party knowing in advance.

• Delay in filing a motion for interim relief is an independent ground for its dismissal-even if the substantive claims are well-founded.

• An attachment imposed on a business’s bank account can paralyze it within hours. Knowing how to stop it is just as important as knowing how to request it.

• Anyone requesting interim relief undertakes a personal obligation to compensate the other party if it turns out the order was issued improperly.

• Interim relief that the court examines on its merits and upholds can decide an entire proceeding within weeks-instead of years. The pressure it exerts on the opposing party, combined with the court’s opinion on the lawsuit’s prospects, often brings the other side to a settlement from a position of strength.

What Are Interim Remedies and Why Are They Important

Legal proceedings in Israel often last for years. But in business life, damage can occur within weeks-a partner emptying a business account, a competitor violating a non-compete agreement, a supplier continuing to operate in breach of contract. For such cases, the interim relief mechanism exists: a tool that allows the court to intervene immediately and preserve the existing situation until the conclusion of the proceedings.

Rule 94 of the Civil Procedure Regulations, 5779-2018, establishes the purpose of interim relief: “to secure an apparent right during legal proceedings and ensure the proper and efficient conduct of the proceedings or the proper execution of the judgment.” In practice, interim relief is often the first battle-and it is very important to win it.

The Three Tests the Court Examines

The Supreme Court has established, in a long line of decisions including CA 645/21 (published in Nevo, February 21, 2021), the three cumulative tests that the applicant must meet:

The first test is the prima facie existence of a cause of action. Full proof is not required-it is sufficient for the court to be convinced that the lawsuit raises a serious question and is not a frivolous claim. However, sufficient prima facie evidence is a necessary condition, and anyone filing an empty motion may pay for it with dismissal and costs.

The second test is the balance of convenience. The court examines the damage that will be caused to the applicant if the relief is not granted, against the damage that will be caused to the respondent if it is granted. When the potential damage to the applicant exceeds the damage to the respondent-the scales tip in favor of granting the order.

The third test is the consideration of fairness and justice. The court examines the applicant’s good faith, the delay in filing the motion, and the overall conduct of the parties up to that stage.

Common Types of Remedies in the Business World

Temporary Attachment-Pursuant to Rule 103 of the Civil Procedure Regulations, the court may impose a temporary attachment on the defendant’s assets-funds in a bank account, real estate, equipment-if convinced that there is a reasonable concern that failure to grant the order will materially impede the execution of the judgment. The attachment is sometimes granted ex parte, meaning the defendant will not know about it beforehand-to prevent the transfer of funds.

Temporary Injunction-Pursuant to Rule 109 of the Regulations, the court may prohibit the defendant from performing a specific action if there is a reasonable concern that failure to grant the order will impede the proper execution of the judgment. Common uses in the business world: preventing disclosure of confidential information, stopping violation of a non-compete agreement, halting the sale of a disputed asset.

Temporary Receivership-In cases where there is a real concern of damage to the value of assets, their concealment, or destruction, the court may appoint a temporary receiver to manage them until the conclusion of the proceedings.

Travel Ban-A tool reserved for preventing the defendant’s departure from Israel, granted when there is a real concern that they will flee and frustrate the execution of the judgment.

Two Sides of the Coin

Anyone accustomed to thinking about interim remedies from the applicant’s perspective must remember that the other party can always file a motion to cancel the order. Moreover, anyone filing a motion for interim relief is required under Rule 96 to attach a personal undertaking to compensate any damage caused to the respondent if it turns out the order was issued unjustly. Anyone requesting an attachment on a business account that caused hundreds of thousands of shekels in damages-and the main proceeding does not end in their favor-may pay for it.

Another point important for business owners: an order issued against you cannot be ignored. Disobedience to an injunction issued by a court constitutes contempt of court under the Contempt of Court Ordinance, and the court is authorized to impose fines and even imprisonment to enforce compliance.

Interim Relief as a Shortcut to Resolution

A strategic dimension many are unaware of: interim relief that is granted-especially one that the court examines on its merits in a hearing and chooses to uphold-can decide the entire proceeding before the trial on the main lawsuit has even begun.

The first reason is the pressure such an order exerts on the opposing party. An attachment on bank accounts paralyzes a business operationally-even temporarily. An injunction stopping the sale of an apartment in the middle of a closing process causes real and immediate damage. A travel ban affects the defendant’s life the very next day. All of these constitute entirely legitimate pressure-and often they are what brings the other side to the negotiating table much faster than would have happened without them.

The second, and less well-known reason, is what happens when the court examines the order on its merits and decides to uphold it. To do so, the court must rule on the question of the proceeding’s prospects-and often expresses its opinion explicitly on the lawsuit’s chances of success. Such an assessment of prospects, given at an early stage of the proceeding and before all evidence has been presented, is an enormously powerful tool: it shapes the expectations of both parties and creates a strong incentive to reach a settlement.

The result: proceedings that were supposed to last for years sometimes end within a few weeks of the order being granted-in a settlement concluded from a position of strength, not weakness.

Timing Is Everything

The question of interim relief is not only a question of “do I have a cause of action”-it is a question of timing and strategy. A motion filed immediately upon learning of a breach can be granted within hours. A motion filed three weeks later may be dismissed due to delay, even if the claims are well-founded. And often, the very filing of the motion-and the undertaking attached to it-brings the other party to the negotiating table before the court has ruled on anything.

Have you encountered a breach of contract, a rapidly escalating dispute, or an order issued against you and want to know what options are available to you? The right time to examine your options is before the damage becomes irreversible.

© Tidhar Tzur Law Firm | This article is for general information only and does not constitute personal legal advice.