Caselaw

Civil Case (Tel Aviv) 18585-05-20 Champions Workshop Ltd. v. Meitar Execution Infrastructure and Communications Ltd. - part 11

December 12, 2024
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Finally, a lease agreement was signed on September 21, 2020, for a future period of January 1, 2021 (Appendix 23 to Anavi's affidavit).

It appears that Meitar tried to minimize its damages, acted actively and reasonably to locate an alternative tenant and reduce the damage.  In addition, it is necessary to take into account the circumstances of the period, which presented a challenge and an obstacle that must be overcome, in light of the COVID-19 crisis.

  1. However, I am satisfied that the Champions Workshop should not be obligated to pay the full rent, and I saw fit to set 50% of the rent. And yes, I saw fit to determine that the lease period would be until the date on which the lease agreement with the substitute tenant was signed, as will be explained below.

Rent during the Corona Pandemic

  1. The Champions Workshop is petitioning for the restoration of rent for the half of March 2020, and in my opinion, this demand should be accepted in part;
  2. In light of my above determination regarding the division of responsibility between the parties, in light of the coronavirus crisis, I saw fit to divide the risk and damages caused to the parties in such a way that the Champions' Workshop would bear 50% of the rent.

In the case before us, I believe that the division should be equal.

In this context, I should note that Anavi was asked by the court if the Champions' Workshop had approached him, how much percentage would he have reduced the rent, he replied: "40 percent, 50 percent, just that they stay in the building.  only let them remain" (p.  40 of the transcript, lines 1-2).

  1. As stated, the Champions Workshop petitions for the refund of half of the rent for the month of March 2020.

However, it has not escaped my notice that the Champions' Workshop approves, in practice, that it vacated the leased property only at the end of April 2020 (Appendix 11 to Levy's affidavit).  However, in light of the coronavirus crisis, it is necessary to take into account, as mentioned.

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