Israeli Knesset Caps Legal Fees for Wounded Veterans and Terror Victims
Israel’s Knesset has passed, in second and third readings, a law limiting fees charged by lawyers and rights-recovery companies to wounded IDF veterans and terror victims. The measure was spearheaded by MK Michal Woldiger, who said it aims to stop exploitation of people seeking disability and injury benefits.
Woldiger explained that the bill is למעשה a government bill she merged, while chairing the Labor and Welfare Committee, with two private proposals, including one by MK Michael Biton. Biton had tried to advance a similar law seven years ago after a wounded veteran complained that those meant to protect his rights were exploiting him.
Woldiger said the abuse became especially visible after the October 7 attacks, when more and more complaints reached her. She reviewed many contracts and described cases in which wounded veterans and terror victims were charged sums of about a quarter of a million shekels or more, even in obvious injury cases such as leg amputations. She also said lawyers and rights companies were signing people while they were hospitalized, or in rehabilitation settings, when their mental state was unstable.
She noted that the Defense Ministry has already simplified benefit procedures in recent years, but people still took advantage of injured and bereaved victims. Woldiger said she expected the Israel Bar Association to intervene, but it did not, and some opponents tried to preserve the existing situation during committee discussions. She stressed that most lawyers and companies act properly, and the law was written carefully so legal work would still be worthwhile. Under the new rules, lawyers may be paid by the hour rather than as a share of the award, and the minister will be able to expand or narrow the law’s scope depending on how it works in practice.
The law passed unanimously in committee and in the plenum, with coalition and opposition support, and Woldiger said it may still be amended later. It applies going forward, but in exceptional cases where fees exceeded the new cap by 140%, the law allows retroactive reimbursement requests.
