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Simon BloomSimon Bloom (John Disney/Daily Report)

An Israeli company has asked a federal judge in Atlanta to declare that an arbitrator had no authority to levy hundreds of thousands of dollars in damages against it in response to claims of defamation made by a Norcross company.

The case stems from a sprawling dispute between Israel-based Profimex and Norcross-based OA Development (OAD). It started when Profimex claimed to an arbitrator in Kennesaw that OAD owed Profimex hundreds of thousands of dollars in fees from real estate deals. OAD responded with counterclaims that Profimex officials defamed OAD to investors in emails, some of which were written in Hebrew.

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