Arkia wins appeal after court awarded unrequested payout

The Tel Aviv District Court has overturned a ruling that ordered Arkia to compensate two passengers following a flight cancellation during Operation Lion's Roar. In a decision published Sunday, Judge Avigail Cohen ruled that the small-claims court had awarded the passengers compensation for assistance services they never requested, a fundamental procedural error.

The case began when Chava and Or Friedmans, a mother and daughter, filed a claim against Arkia for 10,000 shekels. The two were scheduled to fly from New York to Tel Aviv on June 15, 2026, but their flight was cancelled due to the war with Iran.

According to their claim, Arkia offered to refund the original ticket price of $650 per passenger, but they were forced to purchase new tickets at $1,400 per passenger. The pair sought compensation for the price difference and for emotional distress.

Arkia argued that the closure of Israeli airspace was ordered by the government, exempting the airline from the statutory compensation requirement and from the obligation to offer an alternative flight.

Arkia aircraft (Photo: Moshe Shai/Flash90)

The small-claims court accepted the airline's position on those issues. However, Senior Registrar Iris Anavi-Ozatzker ruled that Arkia had failed to provide the required assistance services to the passengers, and ordered the company to pay 2,500 shekels plus 500 shekels in legal costs.

That ruling created the legal problem that led to its reversal.

Judge Cohen granted Arkia's request for leave to appeal, despite the fact that intervention in small-claims court rulings occurs only in exceptional cases.

"The judgment contains a clear error that justifies exceptional intervention by the appellate court," the judge ruled.

In her decision, Cohen clarified that even though the small-claims court enjoys procedural flexibility, it may not grant a plaintiff relief that was never requested, without giving the other side an opportunity to defend against that claim.

"No payment was requested for assistance services, and therefore Arkia did not need to defend against a claim that did not exist in the lawsuit," Cohen wrote.

She further noted that the small-claims court failed to explain why it set compensation at precisely 2,500 shekels, or what basis it used to calculate that amount.

The protocol revealed that the possibility of compensation for lack of assistance services was raised by the registrar as part of an attempt to reach a settlement between the parties, not as part of the plaintiffs' demands.

Ultimately, the District Court accepted Arkia's appeal, dismissed the mother and daughter's claim, and cancelled the compensation and legal costs that had been awarded in their favor. The two did not respond to the request for leave to appeal and did not appear at the hearing.

Arkia was represented by attorney Sivan Ratzon.