Arbitration Committee in Construction Defect Lawsuits: Advantages and Disadvantages

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What Is an Arbitration Committee?

In Israeli construction defect disputes, parties may agree to resolve their case through arbitration rather than through the regular court system. An arbitration committee consists of one or more agreed-upon arbitrators — typically engineers, architects, or experienced legal professionals — who hear the evidence and issue a binding decision.

Advantages of Arbitration

  • Speed: Arbitration proceedings typically conclude within 3 to 12 months, significantly faster than court litigation which can take several years.
  • Technical expertise: Arbitrators with engineering or construction backgrounds can evaluate technical evidence more efficiently than general-jurisdiction judges.
  • Confidentiality: Unlike court proceedings, arbitration hearings are private.
  • Flexibility: The parties can agree on procedural rules, scheduling, and the form of the decision.
  • Finality: An arbitration award has the same enforcement power as a court judgment once registered with the court.

Disadvantages of Arbitration

  • Limited grounds for appeal: Unlike a court ruling, an arbitration award can generally only be challenged on very narrow grounds (fraud, lack of jurisdiction, procedural error). If the arbitrator makes a legal error, there is usually no remedy.
  • Arbitrator fees: The parties must pay the arbitrator’s fees, which can be substantial in complex cases. Court filing fees are generally lower.
  • No preliminary relief: Obtaining injunctions or emergency orders is more limited in arbitration than in court.
  • Requires agreement: Arbitration can only proceed if both parties agree. If the contractor refuses, you must go to court.

When Is Arbitration the Better Choice?

Arbitration is generally preferable when:

  • The dispute is primarily technical (e.g., disagreement about repair methods or costs)
  • Both parties want a quick resolution
  • The parties have ongoing business relations and prefer a private resolution

Court litigation is generally preferable when the legal issues are complex, the amount is very large, or one party has reason to seek interim relief.

How Lev-Taieb Can Help

Choosing the right forum — court or arbitration — is a strategic decision that affects the entire trajectory of your case. The attorneys at Lev-Taieb advise on forum selection and represent clients in both court proceedings and arbitration. Call us at 072-2428822.

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