Not sure how a judge can force a theater to show this film against their will. Perhaps there will be a lawsuit against you. Honestly, I don't know who should win this dispute. I don't doubt many of those associated with the festival don't want it to be a tool of nationalism. Perhaps the Israeli consulate should not have been involved, as this becomes primarily a political issue, not cultural
I don't see very big attendance, or am I wrong? I think that scheduling in the secular horrible days (הימים הנוראים בין יום השואה ליום הזיכרון) is one reason.
Also - location, location, location...