Winning the lawsuit – The legal action of the Israeli Distributors for ILS 8.2 million against the Polish food producer was fully dismissed
A significant win was recently achieved in a complex commercial dispute between a Polish food manufacturer and Israeli distributors highlights the complexities of international business transactions and the critical importance of professional legal counsel.
At the center of the dispute was an exclusive distribution agreement between STOKSON, a leading Polish food manufacturer, and Israeli companies G. Willifood International Ltd. and Euro Dairy Europe Ltd. The dispute between the parties arose as a result of the termination of the distribution agreement and the Israeli distributor filed a lawsuit against the Polish manufacturer for ILS 8.2 million in damages. After almost two years of court proceedings, the lawsuit of the Israeli Distributors was dismissed in its entirety, while STOKSON’s counterclaim was upheld in its entirety and the Israeli distributors were obliged to pay ILS 769,374 to the Polish manufacturer. The Israeli companies, which had appealed against the verdict, in view of the unambiguous position of the court of second instance, withdrew the appeal and in January 2025 the verdict became final.
This case emphasizes the critical importance of early legal planning in international transactions. Many companies seek legal counsel only after a dispute arises, but our experience shows that professional legal planning at the early stages of a transaction can prevent costly and exhausting disputes down the road.
The success in this case underscores the importance of deep understanding of both legal systems – Israeli and Polish. In this instance, despite our firm not drafting the original contract, we achieved optimal results for our client thanks to our profound familiarity with both legal systems and understanding of cultural and business nuances in both markets.
This positive result for our client is not only the dismissal of the Israeli distributor’s original claim for ILS 8.2 million, but also the achievement of full satisfaction of payment for goods delivered and the settlement of the dispute without damage to the reputation of either party.
Our experience in this matter confirms the importance of obtaining professional legal advice before signing international agreements. It is particularly important to ensure that agreements are clearly drawn up and protect the interests of the parties, considering the complexity of legal relations in international trade.
Operating in Israel and Poland, our law firm has more than 20 years of experience in handling international transactions. We offer our clients the significant advantage of a deep understanding of both legal systems, together with a comprehensive knowledge of the business culture in both markets. This approach allows us not only to effectively resolve disputes, but also to prevent them from arising.