Supreme Court: Palestinian Authority Cannot Challenge Disability Determinations in Compensation Claims

The Supreme Court ruled today (Monday) that the Palestinian Authority cannot present evidence to contradict disability determinations of terror victims, as established by the National Insurance Institute or the courts, within the framework of punitive damages claims filed against it. The Supreme Court adopted the position of the Attorney General and rejected the appeals filed by the Palestinian Authority.

The decision was issued in the context of two appeals concerning the Punitive Damages Law, which came into effect in June 2024, allowing terror victims with a permanent disability to receive punitive damages from the Palestinian Authority.

One case involves a victim of a hostile act who was determined to have a mental disability by the National Insurance Institute. The second case involves family members of a person murdered in a terror attack, recognized as indirect victims within a tort claim against the perpetrators. In both instances, the Palestinian Authority sought to introduce evidence to challenge the disability determinations, but the district courts rejected the requests, and the Supreme Court has now upheld those rulings.

Supreme Court President, Justice Isaac Amit, along with Justices Yael Willner and Gila Canfi-Steinitz, ruled that the Punitive Damages Law for terror victims is clear: once a terror victim is determined to have a permanent disability, they are entitled to punitive damages from the Palestinian Authority.

The judges emphasized that the law's language, referring to a "determined permanent disability," indicates that there is no need to re-litigate the existence of the disability within a punitive damages claim.

"Although this is a very exceptional law in the landscape of tort legislation, the language of the law is clear and serves its purposes. In the current state of affairs, the Punitive Damages Law is part of the law books of the State of Israel, and the determinations of the lower court are correct," noted President Amit.

The court clarified that the law does not allow the Palestinian Authority to challenge disability determinations, describing it as a "negative and intentional arrangement" designed to ensure compensation for victims while punishing and deterring the Palestinian Authority. The compensation amount is uniform, regardless of the disability rate, provided that a permanent disability has been established through comprehensive medical examination.