An Israeli court today ruled that the Palestinian Authority areas are a sovereign state and therefore not bound by Israeli law. The Court based its ruling on international law, which sets up requirements for an entity to become a state. The PA fulfilled those conditions and are therefore a state.
I don't really understand how a court could just declare another entity a state in the absence of legislation to that effect, especially when the legislature does not recognize the PA as a state. While I'm not taking sides in the old argument about whether state recognition is declarative or constitutive, it's seems odd that a court in one state could disagree with the legislature's determination of the existence of a foreign state. Despite Israeli agreements with the PA, the WB is still considered territory under the control of the IDF, and therefore not a sovereign state under Israeli law. So basically the Court just ignored that legislative determination and decided that international law wins. Even if we assume that international law applies in Israeli courts how international law could override Israeli law in the absence of provisions that decide a hierarchy of laws is beyond me. Just another example of hyperactivism on the part of the Israeli judiciary.