The Israeli courts system will be just fine, thanks for your concern.
You said there was an Internationally-Recognized Border, and when pressed to show what you were talking about, you then moved goalposts, and referred to an Israeli Supreme Court decision (which one?) that ostensibly looks at what the term "Legally Occupied Territory" means in regards to sovereignty.
Hebron as we all know, for instance, is not within the Israeli zone of civil control (it's not part of Area C).
These lands are under various arrangements as far as who handles what. Memorandums between Israel and the Palestinian National Authority provide guidance about administering things in many spheres, including trade, finance, water, roadways, birth and death registrations, automobile registrations, insurance, travel documents, etc.
For years there has been an international consensus view that supports the establishment of a Palestinian state on the pre-1967 lines (1949) with minor, equivalent land swaps that would allow Israel to annex the major settlements (larger towns and cities). The Palestinian capital would be in East Jerusalem, with sovereignty over the holy site known to Jews as the Temple Mount and to Muslims as the Noble Sanctuary or al-Aqsa mosque compound, and overland contiguity with the rest of the Palestinian state (Gaza). Israel would withdraw its forces from checkposts and bases all over the West Bank and release Palestinian prisoners. And Palestinian refugees would be offered compensation, along with the right to return, not to their homes, but to their homeland in the State of Palestine, and acknowledgment of Israel’s partial responsibility for the refugee problem, by Israel allowing entry for family reunifications (case by case) on a scale that would not perceptibly change Israel’s demography, ( there was talk of return of 100,000 or so first-generation older refugees to their pre-1948 lands and if possible, previous homes.