Caselaw

Additional Civil Hearing 2045/05 Vegetable Growers Association Cooperative Agricultural Association in v. State of Israel

May 11, 2006
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In the Supreme Court

 

Additional Civil Hearing 2045/05

 

Before: The Honorable President A. Barak
  The Honorable Vice-President (Ret.) M. Cheshin
  The Honorable Judge D. Beinisch
  The Honorable Justice E. Rivlin
  The Honorable Judge A. Procaccia
  The Honorable Judge A. E. Levy
  The Honorable Judge A. Grunis
  The Honorable Judge M. Naor
  The Honorable Judge S. Jubran

 

Applicants: 1. Vegetable Growers Organization – Cooperative Agricultural Society Ltd.
  2. Negev Farms – Central Cooperative Society for Agriculture Ltd.
  3. Kibbutz Urim

 

  Against

 

Respondent: State of Israel

 

Further Discussion

 

On behalf of the applicants: Adv. Tuvia Erlich

Adv. David Ziller

 

On behalf of the Respondent: Adv. Tamar Bar-Asher-Zaban

 

Judgment

Justice E. Rivlin:

  1. "The ways in which a contract is interpreted – the language of a written contract; the circumstances of the conclusion of a contract and oral evidence on those circumstances; subjective purpose and objective purpose; All of these and everything in between" were placed before us, according to the decision of my colleague Vice-President M. Cheshin, to hold an additional hearing on the matter discussed in the matter of other municipal applications 2553/01 Vegetable Growers Organization Cooperative Agricultural Association in Tax Appeal v. State of Israel Net(5), 481. Let us preface by saying that we have reconsidered the matter and reached the conclusion that the dispute that is the subject of the petition does not give rise to a dispute in principle – old or new – on these matters, and that even on the merits of the matter, the petition should be dismissed.

The Facts and Proceedings

  1. On May 4, 1994, an agreement was signed in Cairo between the Israeli government and the Palestine Liberation Organization regarding the Gaza Strip and the Jericho area (hereinafter: the Cairo Agreement; see Charter 1067). The agreement stipulates, among other things, that the agricultural products of each side will have free access to the other. With regard to a number of crops, including potatoes, imports to Israel were limited by temporary restrictions, which were intended to be gradually reduced until they were completely eliminated.  Following the Cairo Agreement, an agreement was signed between the 1st Petitioner and the Respondent entitled "An Agreement on the Subject of Compensation for Vegetable Growers Following the Peace Agreements" (hereinafter: the Agreement or Contract).  The agreement was signed, on November 24, 1994, by representatives of the Ministry of Finance, the Ministry of Agriculture, the Vegetable Council and Petitioner 1.  Clause 5 of the agreement is the central clause for our matter, and among it, mainly, subsection F.  The provision of section 5 states:
  2. Additional compensation for the cancellation of quotas as a result of the exposure of quota crops to autonomy

The Ministry of Agriculture will submit to the Ministerial Committee for the Economy by December 15, 1994 a proposed resolution according to which:

  1. The Ministers of Agriculture, Industry, Industry, and Finance will refrain from signing quota orders in all large areas except potatoes.
  2. The government will act to change the Vegetable Council Law in such a way that it will not be possible to set production quotas for these vegetables in the future.

The compensation for the cancellation of the quotas will be NIS 1,700 per dunam.  However, the individual compensation for carrots and onions is subject to the construction of an agreed compensation table according to the seasons that are prepared by the Vegetable Council.

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