As Israel suffers a wave of Palestinian terrorism, several government initiatives are moving towards using civil suits to cut off the millions of dollars that fuel the violence.

High Court: Unprecedented ruling

On Sunday, Israel’s  High Court of Justice ruled that the Palestinian Authority (PA) can be held liable for terrorist acts since they carry out a policy of paying stipends to terrorists and their families. 

Justice Yitzhak Amit wrote the majority ruling, which the court acknowledged was “precedent-setting and unusual.”

“[The PA] expresses its consent to their actions in a manner that takes responsibility for the acts. This justifies that [the PA] will be assigned personal and direct responsibility,” Amit wrote.

The ruling came as part of a legal proceeding in which four families who lost loved ones in four separate terror attacks during the early days of the Second Intifada about 20 years ago sued the PA. The Jerusalem District Court rejected their petition, but the High Court, led by Justice Amit, ruled in their favor. 

The ruling means that the PA can only be sued for compensation rather than punitive damages. This means relatively lower payouts can be ordered by courts in which the PA may be tried.

The case will now be returned to the Jerusalem District Court, which will determine the compensation owed to the four by the PA.

On Monday, Palestinian Prime Minister Mohammed Ishtaye told the Palestinian cabinet that the Israeli court’s decision on the Palestinian Authority (PA) as a supporter of terrorism “is rejected.”

“The government’s support for the families is not supporting terrorism; rather, our duty towards the orphan sons of martyrs and the prisoners and their families who need all our help,” Ishtaye said.

“The claim of the Israeli court is unacceptable, illegal, and illegitimate, considering the court to be “one of the tools of the occupation,” he told the weekly meeting of the cabinet held in the West Bank city of Ramallah.

Government seeks to cut off funds to PA.

Also, on Sunday, the government approved the establishment of a committee to examine the removal of state benefits such as pensions and other grants from the families of citizens who committed acts of terror.

“We are determined… to change the equation so that it will not be worthwhile to participate in terrorist attacks against Israeli citizens,” Prime Minister Naftali Bennett said. “Providing benefits from the state to terrorist families is utterly absurd, and it is time to redress the injustice.”

“The State of Israel will hold anyone accountable who has a direct or indirect connection to the terrorist attacks,” he added.

Such legislation has been proposed but failed to pass the Knesset. This type of move may also encounter difficulties if challenged in the courts. 

State Comptroller: Legislation already in place

On Tuesday, Israel’s State Comptroller Matanyahu Engelman gave a speech College of Management Academic Studies (COLMAN) in which he called for the state and individuals to bring civil lawsuits against terrorists and the Palestinian Authority (PA) as a deterrent, noting that no changes in legislation were necessary.

“These days, Israeli citizens are experiencing a murderous wave of terror that has already claimed the lives of 14 people killed, and many others have to deal hourly with the injuries caused by the terrorists,” Engelman said. “A report we published several months ago revealed one simple and effective tool that the State of Israel does not use in the fight against terrorism: filing civil lawsuits against terrorists, whether they are residents of the State of Israel or Palestinians.  In such a case, it can be done by offsetting funds from the Palestinian Authority.”

“The State of Israel compensates the victims of terrorism.  In 2019, the National Insurance Institute paid NIS 540 million to victims of hostilities. But in 2018-2019, the state did not file civil lawsuits against the terrorists at all.”

“I will soon publish a report on Operation Guardian of the Walls, he continued. “Apart from the psychological damage, in the May 2021 riots, there was severe property damage, and we will examine the implementation of the civil enforcement tool.  These riots and the terrorist attacks of recent weeks illustrate the need for civilian enforcement.”

“I call on the Minister of Justice and the Attorney General to activate the civil enforcement tool.  It should be emphasized that this does not require legislative changes. One only has to decide to enforce it. This is essential for both justice and the war on terror. “

Shurat Hadin

Fighting terrorism by legal means is being used to great effect by Shurat Hadin, an Israeli NGO founded in 2003. Under the motto: “Bankrupting Terrorism – One Lawsuit at a Time!” Shurat Hadin has represented hundreds of terror victims in legal actions and civil suits against terrorist organizations and their supporters, won billions of dollars in judgments against them and secured hundreds of millions of dollars in compensation on behalf of the victims. According to the Israeli security services, due to Shurat Hadin’s legal battles, money diverted to terrorism in Gaza was reduced to 60%.

In recent years, Shurat HaDin initiated a legal campaign to deprive terrorists of social media resources such as Facebook, Twitter, and YouTube, which are used to incite violence online against Jews and promote terror attacks.