Small Claims Without a Hearing? The Dangers of the Ministry of Justice’s New Law

Given the overload in small claims courts, the Ministry of Justice convened a special team to improve the small claims procedure. The overarching goal is to save judicial time and promote the use of technological means. While the concept is excellent, there are two potential pitfalls in its implementation.

On May 28, 2024, the Ministry of Justice published for public comment, a draft amendment to the Small Claims Court Rules. The purpose of the amendment, according to the Ministry of Justice, is to improve service for litigants, reduce the burden on the courts, and streamline their work.

Most notable is the attempt to utilize technological means and reach a decision with minimal procedure. For example, it will be possible to hold Zoom hearings, without physically attending court. However, the proposed version contains risks that may significantly harm litigants;

And like most things in our country, the path to real reform is still long and winding.

No Discussion, Just Writing

Almost any couples counselor will tell you not to handle your arguments via WhatsApp. The reason is simple: most of us find it difficult to convey messages completely in writing; and interpretation – especially during a dispute – can lead to devastating results.

Nevertheless, one of the proposed amendments to the law will grant the court broad authority to decide a dispute based solely on the documents submitted, i.e., without holding a hearing. If the court so decides, it may allow the parties to supplement their arguments, but again, in writing (up to two pages).

This is one of the amendments with the highest potential for harm. Small claims are conducted without lawyers. The task of drafting the statement of claim or defense rests on our shoulders. But most of us – especially the older generation – find it extremely difficult to convey our intended message in writing; and there is a high probability that while we might lose on paper, we would win after a hearing. Beyond that, we Israelis need to talk, explain, and decompress; only then do we approach resolution. Without a hearing, we simply won’t feel complete.

And another crucial point: Small claims courts were established to assist the average citizen. It’s no coincidence that corporations cannot file claims there or appear with lawyers. However, a significant portion of the Israeli population faces considerable difficulties with language and expression. So, while switching to written submissions might reduce the burden on the courts (and judges will be pleased), ultimately, we, the average citizens, will pay a heavy price.

Form for Form’s Sake

The current system for filing small claims is frankly outdated. You need to download a specific form (Form 1) from the internet, print it, fill it out by hand, print all the documents, and submit it physically or via the court website. This form is unclear (to put it mildly), offers very little space for expression, and the fields to be filled in are often completely irrelevant to the reason for the claim.

Apparently, the Ministry of Justice also understands this and has proposed abolishing the current forms (for the statement of claim and defense). And here’s the first flaw: the proposed amendment states that a claimant will fill out a statement of claim not exceeding five pages and including the following details: (1) the place of the act or omission for which the claim is filed; (2) what the claimant seeks to receive (how much money or what type of order); (3) the reasons for the claim; (4) a list of the documents on which the claimant will rely; (5) a list of the witnesses the claimant wishes to testify; (6) and whether the claimant has any objection to conducting the hearing via technological means.

In addition, the claimant will need to attach to the statement of claim the documents on which they wish to rely; a declaration that everything stated in the claim is true and a declaration of the number of small claims filed by them this year. To assist, the Ministry of Justice stated that it will upload sample statements of claim to its website from which the average citizen can draw inspiration.

Sharp-eyed readers will notice that what has essentially happened is that instead of one form, there’s another. Only this time, you can design it however you want, as long as all these details appear in it. By the way, the brave among you can try filling out and submitting a small claim via the court’s “Net Mishpat” website. However, this is a decidedly unfriendly system; and it’s unlikely you’ll last more than three minutes before giving up.

One would expect that in 2024, the high-tech nation would offer citizens a user-friendly online platform where they can fill in all the details and submit them directly to the court. A platform that would also guide the user through the completion process with online tools, allow easy and orderly attachment of documents, send the statement of claim to the defendant, and even direct them to relevant legislation.

Dino’s Technological Solution

Precisely because of the existing gaps and in order to make the courts accessible to citizens, we have developed the Dino smart system. The system allows you to produce and submit a small claims claim from any device, in an average time of approximately 14 minutes.

After registering with the system, you need to select the type of claim and fill out the questionnaire tailored to the type of claim and to the user’s pace of progress and responses. The system includes the development of a special add-on that allows you to upload relevant documents online and convert them into an organized appendix key.

Throughout the system, there are helper tools, an information wizard, and links to the various articles available on the website. Thus, the completely independent process becomes simpler when relevant information from the web is readily available and accessible.

Within minutes of payment, a statement of claim is generated that conforms to the instructions of the court administration and the judiciary. Those who wish can also purchase a filing service that includes payment of the court fee and physical filing to the court by a legal courier.

Our innovative development is unlike any product that exists in this field in Israel. Dino’s development brings technology to a field that has been neglected for years, making the court accessible in a user-friendly process.

For all information about the Dino system or to submit a small claim online.

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