Financial claim – what is it and how to act correctly to succeed in the claim?

What is a financial claim?

A monetary claim is a claim that focuses only or mainly on monetary relief, but this does not mean that it is not possible to also claim non-monetary relief (for example, injunction, Order made, Foreclosure orderThe higher the financial relief required, the higher the lawsuit will be filed with a higher court (and the court fee will be higher).

The most common situations in which people consider filing a financial claim with the court are when they seek to receive financial compensation for an event that occurred (for example: Financial compensation due to sexual harassment, Lawsuit against a lawyer For negligence, Assault claim), or when requesting a refund for a purchased product (for example, a refund after purchasing A vehicle that turned out to be defective), or a combination of the two previous cases (for example Breach of contract After which financial compensation for the violation and the return of funds paid following the signing of the agreement are required.

Compensation for provable financial damages can be claimed as part of the lawsuit, Compensation without proof of damage And also compensation for Non-pecuniary damage (for example: Mental anguish).

There is no single correct way to file and manage a financial claim and it is always advisable to consult with Claims lawyer Experienced in order to receive guidance and explanation of the most appropriate course of action in your case. For example: Is it appropriate to file a claim in small claims court/magistrate court or district court? Is it worth filing a claim in A monetary claim in ordinary court proceedings or A lawsuit in a speedy trial.

These terms, some of which you may not be familiar with, are very important and may have a direct impact on any lawsuit you wish to file. It is very possible that if you choose to file a lawsuit in a specific court, in a specific legal proceeding, you will increase your chances of success.

In addition, it is very important to choose a lawyer who specializes in the specific field relevant to your case in order to file a lawsuit and increase its chances of success. For example: It is clear that there is no point in contacting a criminal lawyer when you want to file a lawsuit. Civil lawsuitThese are lawyers who deal with completely different fields and who do not always know all the subtleties and provisions of the law relevant to their main areas of practice. Such a lawyer would also know how to deal more correctly with Statement of defense in a financial claim.

It is worth considering sending a letter before filing a financial claim.

Warning letter Before filing a claim has several notable advantages that justify sending it:

1. There is a chance that the potential defendant will accept the demand and agree to pay the required amount, or part of it, thus making the legal process unnecessary or simpler.
2. Filing a claim involves the payment of a court fee. The higher the amount of the claim, the higher the fee. Sending a warning letter before filing a claim does not involve any fee (other than payment for Israel Post services).
3. Filing a financial claim will inevitably require you to wait between several months and several years until the claim is resolved and the court issues a ruling (which will not always be in your favor). A warning letter will, in the vast majority of cases, receive a significantly faster response.
4. Before filing a financial claim, it is very important to be prepared for any possible argument from the defendant. Receiving a response to a warning letter before taking legal action will allow you to understand what the defendant may claim in court, and as a result, you will be able to draft the claim in a way that will help you overcome the obstacles expected from the defendant.

It is not advisable to send a letter before filing a claim when it is an exceptionally urgent case, as waiting for a response may lead to a waste of valuable time. In addition, a warning letter in urgent cases may reveal to the potential defendant that you intend to file a lawsuit against him, which will allow him to prepare and perhaps even smuggle assets or money, so that at the end of the procedure you will not be able to pay him back.

Filing a financial claim – where to go?

There are several different courts in Israel that hear financial claims of various amounts. Filing a claim in the wrong court may lead to its rejection.

בית משפט לתביעות קטנות דן בתביעות כספיות עד לסכום של כ-40 אלף ש"ח (הסכום מתעדכן מעט מדי שנה).

Magistrate's Court He handles financial claims up to 2.5 million shekels.

District Court He handles financial claims in excess of 2.5 million shekels.

ניתן להגיש תביעה כספית על סך 25 אלף ש"ח לבית משפט השלום, אך לא ניתן להגיש תביעה על סך 50 אלף ש"ח לבית משפט לתביעות קטנות.

Filing a lawsuit in labor matters (a dispute between an employer and an employee) must be done in the Labor Court.

Filing a financial claim on issues relevant to disputes between family members must be done in a family court.

How to draft a financial claim?

You can read a detailed guide on drafting a financial claim by clicking here.

It is important to understand that you cannot demand anything that is not required in the statement of claim in court (without asking the court for permission). Correct the claim, which will lead to an objection from the defendant, and in most cases to an award of legal costs against you).

For this reason, it is very important to check and calculate precisely what financial damage you have suffered, in order to draft the claim correctly and accurately, and to file a claim with the correct court and in a way that will not require correction later.

Amending the statement of claim will lead to amending the statement of defense and in any case will lead to a significant delay in the clarification of the legal proceedings (which is almost always to the advantage of the defendant and to the detriment of the plaintiff).

Should I file a financial claim myself or through a lawyer?

This issue is of great importance to the plaintiff because the filing Claim through a lawyer In most cases, a fee will be charged. The more complex the financial claim, the higher the attorney's fee is expected to be.

If it is a small claim, a lawyer will not be able to represent the plaintiff (due to a ban on representation in small claims court), but he will be able to assist him in drafting and submitting the statement of claim.

A plaintiff may decide to represent himself in other courts as well, but this will usually be a bad decision that will initially lead the plaintiff to a worse legal position, especially if the plaintiff is unfamiliar with the rules of procedure or the courts' rulings. On the one hand, the plaintiff will save the lawyer's fees, but on the other hand, he will frustrate himself throughout the proceedings, which may cost him dearly, among other things, due to a ruling on legal costs that may be awarded against him throughout the legal proceedings and at their conclusion.

On the other hand, not every lawyer will be able to assist the plaintiff when filing or managing a lawsuit. Just as there are doctors in different fields, there are also lawyers who deal with different fields. A lawyer who deals with apartment sales contracts may be less professional in filing lawsuits than a lawyer who regularly deals with filing financial lawsuits and managing them in the courts. For this reason, it is very important to check who the lawyer you intend to contact is, what cases he handles, how many financial lawsuits he has filed, and what results he has reached.

In conclusion

A monetary claim ultimately aims to obtain monetary compensation or a refund from the defendant. As part of such a claim, non-monetary remedies (for example, injunctions) can also be claimed and demanded.

The amount of the claim affects the identity of the court to which the claim should actually be filed (for example: small claims court, Magistrate's Court or the District Court).

It is not always appropriate to file a lawsuit immediately. Sometimes it is worth considering sending a warning letter before taking legal action.

It is very important to know how to properly draft a claim. In cases where significant financial damage is involved, it is very important to use the services of Claims lawyer experienced.

Frequently asked questions about a financial claim