Caselaw

Civil Case (Haifa) 43957-11-23 Mazal Tov Brands Marketing 2020 Ltd. vs. Yaakov Chen - part 7

October 15, 2025
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"Regarding [the request to file a lawsuit against Brandes], there is no objection from Epstein, but there are objections as to the chances of such a lawsuit as well as the company's ability to bear the fees to be paid to the legal advisors in Italy.  Mr. Chen, being a director of the company, and as the person who actually manages the company, declared that the company has resources that enable the payment of fees for this procedure, and also attached a document according to which after consulting with lawyers from Italy, there are chances of such a lawsuit.  Beyond that, the company is still operating without the court intervening in its management, except for matters that were decided in the framework of the meeting on December 4, 2023, and therefore I see no impediment, by virtue of the prerogative given to Mr. Chen, both as a director and as a manager, from deciding to engage with lawyers for the purpose of filing a legal proceeding in Italy."

Following this decision, Mazal Tov filed a lawsuit in Italy against Brandes and against Epstein personally.  Epstein complained about this move and filed a request to "grant a blocking order" or "stay of proceedings", the focus of which was his claim that in addition to the counterclaim filed in this proceeding by Chen against Epstein, a lawsuit is being filed in Italy (which was filed in accordance with the court's approval) against Epstein as well.  In a hearing held on July 16, 2025, on the court's recommendation, the parties reached an agreement whereby Chen would be granted permission to amend the counterclaim in this proceeding, in such a way that the company would be added as a plaintiff and would include all the causes and damages alleged in the lawsuit filed in Italy against Epstein, and accordingly the lawsuit in Italy would continue to be conducted against Brands only.

Against the background of the sequence of events as stated above, and in light of my prima facie determinations regarding Epstein's conduct, I do not believe that the filing of the lawsuit against Epstein in Italy is an act that constitutes discrimination, in a manner that justifies the appointment of Epstein as a director.  As stated, after the consent of the parties, no lawsuit is conducted in Italy against Epstein personally, and with the consent of the parties, the litigation takes place in this proceeding.  Indeed, the question of the company's representation by the attorneys representing Chen, and the payment of fees to these attorneys in respect of the company's claim in Italy (see Appendix 2 to the application), may raise a number of questions (some of which I will address later), but these facts in and of themselves do not lead to the result that Epstein hopes for.

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