"They preferred to buy the goods directly from Paragon and at the same time take from Nahmias his entire marketing system, including the debtors and customers, including his inventory, and continue Nahmias's existing business..." (p. 48, paras. 22-24 of the minutes of the hearing of April 19, 2023).
- The plaintiff testified at the outset that the payment to Paragon was not intended to cover Mr. Nahmias's debt, but rather to purchase the franchise:
"Q. So you didn't buy Nahmias's debts.
A. How can you buy debts? We bought the right to market Paragon's products. What Paragon will do with the money is its problem."
(p. 27, paras. 19-31 of the minutes of the hearing of December 5, 2022).
Subsequently, when the plaintiff was asked by what he considered to be the extent of the sum to be paid in exchange for the purchase of the franchise, i.e., the sum of ILS 3,750,000, he replied that the sum was determined according to the information that Mr. Darshewitz had given them in the course of the negotiations, that this was the amount of Mr. Nahmias's debt to Paragon, and it was logical that they would cover the debt so that the rights would pass to them (see p. 49, paras. 19-27 of the minutes of the hearing of December 7, 2022).
The plaintiff also confirmed in his testimony that if it had become clear later on that Mr. Nahmias had additional debts to Paragon, he would have been required to cover them as well (see p. 28, paras. 1-6 of the minutes of the hearing of December 5, 2022).
In addition, the plaintiff testified that "when I say that there is a debt of 3.75 million to Nahmias, I understand that I am paying Pini the 3.75 million. Whether or not he will settle Nahmias' debt with it is his problem. I paid for it. I told him that he owes 3.75, take the sum and give me the right, how can you write it with you, it didn't bother me" (p. 29, paras. 19-21 of the minutes of the hearing of December 5, 2022).
- Nahmias himself testified that they did not even understand what the sum of ILS 3.75 million was paid for, but that he also included the coverage of his debt to Paragon (see pp. 57, paras. 27-29 and 62 Q. 32-36 of the minutes of the hearing of December 7, 2022).
Mr. Nahmias further claimed that he was receiving, until the date of his testimony, the sum of ILS 1,000, although it was not clarified from whom and for what (see p. 57, para. 26 of the minutes of the hearing).