Revaluation of Funds Returned by Public Authorities in the West Bank

This paper examines an issue in which public international law, private international law and commercial law intersect. The Civil Administration of the West Bank, which provided governmental services to the Palestinian population in the West Bank, held for various reasons funds paid by individuals (e.g., bail in criminal proceedings). The paper examines whether the Civil Administration had a duty to revaluate funds returned in due course, so as to compensate for inflation. A complex network of laws govern this issue, ranging from principles of English Law and Jordanian legislation, through Israeli administrative law (governing the conduct of the Israeli-controlled Civil Administration), Israeli contract law, and principles of public and private international law.

The paper argues that while no duty of revaluation is imposed by local law (i.e., English and Jordanian law enacted during the time each controlled the West Bank), the Civil Administration should revaluate funds based on principles of Israeli contract law imposed through Israeli administrative law on the Civil Administration. The paper then addresses another complex issue - what would be the standard for revaluation, given that funds were paid in several currencies (mainly the Israeli Shekel and the Jordanian Dinar), and by people living in communities with different economies and inflation rates (West Bank Palestinians, Jordanians and Israelis).