Flame Stand
- According to the Lehavot method, on the other hand, it itself fully fulfilled its obligations and even did its best to cover up for damages caused by the conduct in question.
Lehavot claims that the goal at the time of the engagement with Danan was to change the way service is provided to its customers in Israel, and to outsource the service and day-to-day operations in the fields of hoods and buses and sales in the field of hoods. Lehavot's position is that due to poor preparation on the part of Danan, it was agreed between the parties to postpone the beginning of the exclusivity period; In addition, at a certain stage, it was agreed between the parties to exclude the bus sector from the contract, after Danan did not want or failed to meet its obligations in this regard and treated it as a burden that is not financially worthwhile for it; In the aforementioned rule, Danan refused to carry out urgent repair actions in accordance with the timetables required by the customers and waited for the accumulation of calls from a certain geographical area to the removal of a technician. This conduct led to customer complaints and the need to employ technicians on behalf of Lehavot.
- According to Lahavot, Danan acted in bad faith and in an attempt to get rich at her own expense and caused damages, when she tried to push the legs of Lehavot's distributors in order to contract directly with customers and increase profits from the sale of additional products. It was claimed that Lehavot's activity in the field of hoods, which constitutes a significant part of its sales, is carried out through distributors, because Danan was in a unique position, since on the one hand, it acted as a distributor itself It sells products and services, and on the other hand, acted as the long arm of Lehavot for the purpose of providing service to the customers of other distributors, and that Danan took advantage of her unique position and when she came to provide service on behalf of Lehavot (for Lehavot products sold to customers by other distributors), she tried to step into the shoes of the other distributors, compete with them and contract with the customers.
Lahavot adds that Danan's conduct, which was unprofessional, characterized by procrastination and even predatory, caused some of the distributors to condition the continued purchase of Lehavot products on the fact that the supply would be direct and not through Danan, and Lahavot was forced to exclude them from the agreement, which was agreed upon between the parties. Lehavot further claims that all the sales and services provided by it during the exclusivity period directly to customers or other suppliers were with the knowledge and consent of Danan, who even performed some of the actions and received payment for them.
- It was argued that Danan's services were not at the required level, that Lehavot was required to perform them herself many times and therefore was forced to continue to maintain a service system on its behalf in parallel with Danan's, which would be useless in the continuation of the engagement. It was also claimed that Danan's breaches of the agreement endangered the continuation of Lehavot's business In front of key customers and its reputation in the market.
- According to Lehavot, Danan was given many opportunities to improve, but these were not taken advantage of, and she had no choice but to announce the cancellation of the agreement subject to prior notice, a step to which she was entitled under the agreement. Lehavot continues to claim that upon receipt of the advance notice, Danan acted to immediately terminate its activity and forced Lehavot to cancel the agreement immediately. Flames Claims, that even after the termination of the agreement, Danan continued to operate as a (not exclusive) distributor of its products and was initially offered preferential terms over other distributors, but in view of its conduct, including the opening of the proceeding, Danan is now purchasing Lehavot products at a market price.
- In the counterclaim, Lehavot petitions to obligate Danan for monetary relief relating to the expenses of maintaining a service system for the bus sector, preventing an increase in the volume of sales and damage to reputation, for a total of approximately ILS 1.8 million.
According to Danan, the counterclaim is intended to intimidate and serve as a counterweight to the main claim.