Class Actions Law, 5766-2006
חוק תובענות ייצוגיות, תשס"ו-2006
Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More
This English text was translated from the official Hebrew using a range of translation tools, and it undergoes ongoing checks and updates. It is not a certified translation.
Despite these checks, it may contain errors, omissions, or imprecise renderings of legal terminology and cross-references, and it may not yet reflect the latest amendments. It cannot be relied upon as a legal text.
The Hebrew text as published in Reshumot (ספר החוקים) and on the Knesset website is the sole authoritative and legally binding version. In any discrepancy, the Hebrew text prevails.
This translation is provided for informational purposes only and does not constitute legal advice. For use in legal proceedings, request a certified Expert Legal Opinion.
Purpose of the Law§
The purpose of this Law is to establish uniform rules regarding the filing and conduct of class actions, with a view to improving the protection of rights, and thereby to advance in particular the following:
Definitions§
In this Law –
"organisation" means a corporation, other than a corporation established by law, or a trust, that has existed and operated on a regular and substantive basis for at least one year for the advancement of one or more public purposes, and whose assets and income are used solely for the attainment of those public purposes, provided that its activity is not on behalf of a political party or other political body, or in association with a party or body as aforesaid, or for the advancement of their purposes;
"representative counsel" means a lawyer representing an applicant or a representative plaintiff in an application for approval or in a class action, as the case may be;
"stock exchange" means a stock exchange in Israel as defined in the Companies Law;
"court" includes a Labour Court;
"application for approval" has the meaning given to it in section 5;
"the Register" has the meaning given to it in section 28;
"Administrative Courts Law" means the Administrative Courts Law, 5760-2000;
"Consumer Protection Law" means the Consumer Protection Law, 5741-1981;
"Economic Competition Law" means the Economic Competition Law, 5748-1988;
"Companies Law" means the Companies Law, 5759-1999;
"Insurance Supervision Law" means the Supervision of Financial Services (Insurance) Law, 5741-1981;
"Provident Funds Supervision Law" means the Supervision of Financial Services (Provident Funds) Law, 5765-2005;
"Joint Investments in Trust Law" means the Joint Investments in Trust Law, 5754-1994;
"Environmental Nuisances Prevention Law" means the Environmental Nuisances Prevention (Civil Actions) Law, 5752-1992;
"Equal Rights for Persons with Disabilities Law" means the Equal Rights for Persons with Disabilities Law, 5758-1998;
"managing company", "member" have the meanings given to them in the Provident Funds Supervision Law;
"insurer", "insurance agent" have the meanings given to them in the Insurance Supervision Law;
"applicant" means a person who has filed with the court an application for approval of a class action pursuant to section 5;
"clearing house" has the meaning given to it in section 50a of the Securities Law, 5728-1968;
"defendant" includes a respondent to an application for approval;
"public authority" means a body listed in the First Schedule;
"banking corporation" has the meaning given to it in the Banking (Service to Customer) Law, 5741-1981;
"representative plaintiff" means a person approved by the court, pursuant to the provisions of this Law, as a representative plaintiff in a class action;
"class action" means an action conducted in the name of a group of persons who have not authorised the representative plaintiff to act on their behalf, and which raises substantial questions of fact or law that are common to all members of the group;
"the Minister" means the Minister of Justice.
Filing a Class Action§
Who May File an Application for Approval of a Class Action and on Whose Behalf§
Filing an Application for Approval of a Class Action§
Notice of Filing of an Application for Approval and Registration in the Register§
Prior Application for Approval or Prior Class Action§
Approval of a Class Action by the Court§
Application for Approval in a Restitution Claim against an Authority – Special Provisions§
Definition of the Group§
Opting Out of the Group§
Class Action by Way of Joinder§
Approval with Modifications§
The court may approve a class action with any modification it decides upon relative to the application for approval, all as it sees fit for the purpose of ensuring the fair and efficient conduct of the class action.
Decision Regarding Approval of a Class Action§
Participation in Hearings§
Withdrawal from a Motion for Approval or from a Class Action§
Duties of Representative Counsel§
In performing their functions, representative counsel shall act faithfully and diligently in the interests of the group on whose behalf the motion for approval was filed or on whose behalf the class action is conducted, as the case may be, as if that group were their principal, with the necessary modifications arising from the fact that the proceeding is a representative proceeding.
Motion for Approval of a Settlement§
Approval of a Settlement by the Court§
Proof of Entitlement to Relief and Payment of Monetary Compensation§
Relief of Restitution in a Class Action against an Authority — Special Provisions§
If the court approves a class action in a restitution claim against an authority, it shall not order the authority to make restitution in respect of a period exceeding the 24 months preceding the date on which the motion for approval was filed; nothing in the provisions of this section shall derogate from the right of any member of the group on whose behalf the class action is conducted to claim, on the same cause of action, relief also in respect of additional periods.
Remuneration for a representative plaintiff§
Fees of a representative counsel§
Res judicata§
A judgment in a class action shall constitute res judicata with respect to all members of the group on whose behalf the class action was conducted, unless otherwise expressly provided in this Law.
Publication of notices to group members§
Limitation§
Fund for the financing of class actions§
Fund for the management and distribution of funds awarded as relief§
"personal interest" – including a personal interest of a relative of his, or an interest of another body in which he or his relative is an interested party or an office holder;
"relative" – spouse, parent, son, daughter and their spouses, brother or sister and their children, brother-in-law, sister-in-law, uncle, aunt, father-in-law, mother-in-law, father-in-law (husband's father), mother-in-law (husband's mother), son-in-law, daughter-in-law, grandson or granddaughter, as well as another person who is dependent on the member of the Committee;
"interested party" – as defined in the Securities Law, 5728-1968.
Register of class actions§
Application to the State§
This Law shall apply to the State.
Amendment of Schedules§
The Minister, with the approval of the Constitution, Law and Justice Committee of the Knesset, may, by Order—
Implementation and regulations§
Amendment of Financial Services Supervision (Insurance) Law – No. 17§
In the Financial Services Supervision (Insurance) Law, 5741-1981, Chapter V-A is repealed.
Amendment of Consumer Protection Law – No. 19§
In the Consumer Protection Law, 5741-1981, Chapter VI-A is repealed.
Amendment of Banking (Customer Service) Law – No. 11§
In the Banking (Customer Service) Law, 5741-1981, Chapter III-A is repealed.
Amendment of Restrictive Trade Practices Law – No. 9§
In the Restrictive Trade Practices Law, 5748-1988, Chapter VI-A is repealed.
Amendment of Law for the Prevention of Environmental Nuisances (Civil Actions) – No. 5§
In the Law for the Prevention of Environmental Nuisances (Civil Actions), 5752-1992—
"Remuneration for plaintiff and attorney's fees
14. (a) Where the court has given judgment in favour of the plaintiff in an action under section 2, or has given judgment in favour of the group in a collective action under section 10, in whole or in part, including by way of approval of an arrangement or settlement, it shall order the defendant to pay remuneration to the plaintiff and shall also determine the fees of the plaintiff's attorney, unless it finds, for special reasons to be recorded, that this is not justified in the circumstances of the matter.
"2. The Nature and National Parks Protection Authority.";
Amendment of Joint Investments in Trust Law – No. 11§
In the Joint Investments in Trust Law, 5754-1994, in place of section 41, the following shall come:
"Financing of a class action by the Authority
41. The provisions of section 209 of the Companies Law, 5759-1999, shall apply with respect to an application for approval of a class action or a class action pursuant to the provisions of the Class Actions Law, 5766-2006, on a cause of action arising from a connection to a unit."
Amendment of Equal Pay for Male and Female Employees Law§
In the Equal Pay for Male and Female Employees Law, 5756-1996—
Amendment of Equal Rights for Persons with Disabilities Law – No. 3§
In the Equal Rights for Persons with Disabilities Law, 5758-1998, sections 19bb to 19bl are repealed.
Amendment of Companies Law – No. 4§
In the Companies Law, 5759-1999—
Amendment of Administrative Courts Law – No. 24§
In the Administrative Courts Law, 5760-2000, in the Third Schedule, after item 1 the following shall be inserted:
"2. A claim as referred to in section 5(b)(2) of the Class Actions Law, 5766-2006."
Amendment of Supervision of Financial Services (Provident Funds) Law§
In the Supervision of Financial Services (Provident Funds) Law, 5765-2005, section 53 – is repealed.
Amendment of Television Broadcasts (Subtitles and Sign Language) Law§
In the Television Broadcasts (Subtitles and Sign Language) Law, 5765-2005, in section 12(b), instead of "19bl" there shall come "19ba".
Duty to Make Regulations Regarding Fees§
The Minister shall bring Regulations under sections 83(a)(3) and 108(a)(4) of the Courts Law [Consolidated Version], 5744-1984, regarding fees in proceedings under this Law, before the Constitution, Law and Justice Committee of the Knesset within six months of the date of publication of this Law.
Commencement, Application and Transitional Provisions§
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