How Israeli Law Questions Are Decided in U.S. Courts

By: Adv. Eli Shimony

How Israeli Law Questions Are Decided in US Courts

Cross-border business, investment, and family life often create legal questions that sit at the intersection of Israeli law and U.S. law. When a dispute ends up in a U.S. courtroom, many people are surprised to learn that the judge may still be required to apply Israeli law to decide the case. Understanding how that happens, and how U.S. courts actually figure out the content of Israeli law, can make a real difference in planning deals and resolving conflicts.

In our practice at Eli Shimony Law Office, we see how small choices made at the contract or structuring stage can later determine which country’s law applies. We also see how the quality of Israeli law presentations in U.S. litigation can influence outcomes. In this article, we explain how this process works in clear terms, so you know when to bring in an Israeli lawyer and what to expect if an American judge needs to interpret Israeli law.

How U.S. Courts Treat Israeli Law as a Legal Question

U.S. federal and state courts regularly face foreign law questions. Cross-border mergers, investments in Israeli companies, real estate near Tel Aviv or Jerusalem, inheritance of Israeli apartments, and disputes over Israeli technology often generate lawsuits in U.S. courts where Israeli law is central.

In U.S. courts, foreign law, including Israeli law, is treated as a question of law, not a question of fact. That matters for two key reasons. First, questions of law are decided by the judge, not by a jury, even if other parts of the case go to a jury trial. Second, questions of law receive different treatment on appeal, with appellate courts free to review the judge’s determination of foreign law without the same deference given to factual findings.

In federal cases, the main rule that guides judges is Federal Rule of Civil Procedure 44.1. When lawyers talk about FRCP 44.1 Israeli law, they are talking about the process the judge uses to determine what Israeli law actually says and how it applies. The rule does not make foreign law into evidence in the traditional sense. Instead, it gives the judge wide flexibility to research and decide foreign law as a legal issue.

When Israeli Law Comes Before U.S. Judges

The first point of contact is often the contract. Many cross-border agreements include a choice-of-law clause that selects Israeli law and a jurisdiction clause that sends disputes either to Israeli courts or to a specific forum. Even if a contract says that disputes will be litigated in a U.S. court, the same agreement might choose Israeli law to govern the parties’ rights and obligations.

This is common in:

Shareholder agreements for Israeli startups with U.S. investors

Real estate purchase contracts for property located in Israel

Licensing agreements for Israeli technology or intellectual property

Commercial distribution or franchise agreements involving Israeli products

When there is no express choice-of-law clause, U.S. courts use their own conflict-of-laws rules to decide which legal system applies. That analysis may lead to Israeli law where, for example, the property is in Israel, the company is incorporated in Israel, or the alleged wrong occurred primarily in Israel.

Consider a few typical scenarios that show why speaking with an Israeli lawyer early is so important:

A U.S. investor buys a significant stake in an Israeli company. The shareholder agreement is silent on governing law. Years later, a dispute arises over minority rights and shareholder protections. The U.S. court might decide that Israeli corporate law governs.

Heirs living in the U.S. claim rights in an apartment in Israel that belonged to a deceased relative. The U.S. court may need to apply Israeli inheritance and real estate law to determine their interests.

A U.S. company licenses an Israeli patent. The agreement names a U.S. court as the forum but selects Israeli law to govern ownership and scope of rights. Any lawsuit will likely require detailed analysis of Israeli IP law.

In each situation, advance planning and clear contract drafting with an Israeli lawyer can shape both where a dispute is heard and which law the judge applies.

How FRCP 44.1 Influences Proof of Israeli Law

FRCP 44.1 gives the federal judge broad discretion to decide what Israeli law is and how it applies. The judge can consider a wide range of materials, including:

Affidavits or declarations from Israeli legal experts

Translations of Israeli statutes and regulations

Decisions of the Supreme Court of Israel and other courts

Academic treatises and legal commentary

The usual evidentiary rules do not strictly limit what the judge may review when deciding foreign law. The judge can conduct independent research, request additional materials, or ask questions of the experts during hearings.

However, the parties carry the responsibility to raise foreign-law issues in time and to present a coherent picture of Israeli law. Courts expect lawyers to identify that Israeli law may govern, to invoke FRCP 44.1 Israeli law procedures where appropriate, and to provide the court with organized, reliable materials. That often requires expert declarations or testimony from an experienced Israeli lawyer or academic.

State courts follow similar patterns. Many states have their own rules modeled on FRCP 44.1 or statutes that treat foreign law as a legal question. This means that in both federal and state courts, well-prepared Israeli law submissions are essential. Sloppy or incomplete presentations can leave a judge uncertain about key aspects of Israeli law, which rarely helps the party that bears the burden of persuasion.

The Role of Israeli Law Experts and Evidence

To help the U.S. judge understand Israeli law, each side typically retains its own expert. These experts can be licensed Israeli advocates, law professors, or occasionally former judges, as long as they are qualified to explain the relevant area of Israeli law.

Their role usually includes:

Explaining the structure of Israeli statutes and any relevant regulations

Summarizing leading decisions of the Supreme Court of Israel

Describing how Israeli courts are likely to apply those rules to the facts

Clarifying where Israeli doctrine differs from common U.S. concepts

Accurate translation is vital. Israeli legal sources are primarily in Hebrew, so careful translation of statutes, regulations, and case law is necessary, along with clear explanation of unique legal terms that lack direct English equivalents. At our firm, we pay close attention to consistency between the original Hebrew and the English materials that will be placed before the U.S. court.

It is common for each side to present a different narrative of what Israeli law requires. One expert may emphasize certain cases or statutory provisions, while the other highlights alternative lines of authority or interprets the same texts differently. Judges then evaluate:

The expert’s credentials and experience in the specific legal field

The quality and transparency of their reasoning

How well their opinions align with the underlying Hebrew sources

Whether their interpretation fits the weight of Israeli legal authority

A clear, well-reasoned expert opinion, backed by solid Israeli sources, often carries more weight than a longer but less focused submission.

Strategic Planning for Clients with Israeli Law Issues

From our perspective as an Israeli-based law firm, the best way to handle foreign-law questions in U.S. courts is to reduce surprises long before litigation starts. For businesses and individuals with cross-border interests, that often means thinking about choice of law and forum selection as a central part of the deal, not an afterthought.

When planning cross-border transactions or holding assets connected to Israel, it is wise to:

Decide whether Israeli or U.S. law should govern each piece of the arrangement

Coordinate between U.S. litigation counsel and an Israeli lawyer while drafting contracts

Anticipate where disputes are most likely to arise and how each legal system treats them

Consider arbitration or other dispute methods that may handle foreign law more flexibly

Foreign-law issues can add cost and time to litigation, because parties must prepare expert reports, translations, and complex briefs. A coordinated approach between U.S. trial counsel and Israeli counsel can streamline this process and avoid inconsistent positions about Israeli law.

Thoughtful risk management can also reduce later disputes. Careful structuring of corporate entities, clear IP ownership documentation, and well-planned succession or inheritance arrangements can limit fights about whether Israeli or U.S. law governs and what that law actually says. A bit of advance work, guided by someone who handles Israel-connected matters regularly, tends to be far less expensive than untangling foreign-law problems in the middle of a U.S. lawsuit.

Turning Complex Israeli Law Questions Into Clear Courtroom Arguments

When a U.S. case involves Israeli law, the judge treats that law as a legal question, guided by FRCP 44.1 and similar state rules. The judge looks to the materials the parties provide, weighs competing expert opinions, and forms an independent view of how Israeli courts would likely decide the issue. In that setting, the clarity, accuracy, and persuasiveness of the foreign-law submissions can strongly affect the outcome.

Working with both experienced U.S. litigation counsel and a knowledgeable Israeli lawyer helps ensure that Israeli statutes, court decisions, and legal concepts are presented in a way that makes sense to an American judge. For clients whose business, property, or family interests connect to Israel, thoughtful planning on governing law and forum, combined with careful preparation of Israeli law materials, turns a potentially confusing issue into a structured argument that the court can handle with confidence.

Protect Your Business Interests With Trusted Legal Guidance

If you need clear, practical advice for a complex transaction or dispute, we are ready to help you move forward with confidence. As an experienced Israel lawyer, Eli Shimony – Law Office provides tailored strategies that align with your commercial objectives and risk profile. Reach out through our contact page so we can review your situation and outline your best next steps.

Eli Shimony – Israeli law firm represents clients on all legal matters in Israel. For any questions, please contact us, and we will be happy to assist.
By email: [email protected], By phone: +972-52-2769773, +972-3-5507155.
The above is only general information and does not replace legal advice, which is usually necessary before taking legal proceedings.