In any event, it claims that already in December 2019 and January 2020, or thereabouts, the Champions Workshop asked Meitar to rent out part of the leased property to a sub-tenant. Meitar agreed to the request, and the Champions' Workshop found a sub-tenant, but in the end it was not helped. The Champions' Workshop continued its activity in the building, however, it did not pay the rent from April 2020. The coronavirus crisis does not have the power to free the Champions Workshop from its continued commitment under the lease agreement. What's more, the Champions Workshop, even during the Corona period, provided garage services.
- In the counterclaim, Meitar petitions for declaratory relief and monetary relief in the sum of ILS 994,000, as follows:
- to grant declaratory relief stating that the Champions' Workshop had fundamentally breached the lease agreement; The Champions Workshop is responsible for all damages caused and/or will be caused to Meitar and the leased property in connection with the lease agreement; iDrive is responsible, together with the Champions Workshop, by virtue of its guarantee;
- For non-payment of rent in June 2020 until the end of February 2022 (inclusive) - ILS 30,995 plus from tax appeal for each month - ILS 761,547 (including VAT).
- The balance of the rent for the months of April and May 2020 - approximately ILS 1,334. The amount reflects the payment, after the guarantee is realized.
- Management and maintenance fees - ILS 22,000 (including VAT).
- Damages to the leased property - ILS 100,000.
- Agreed compensation - ILS 108,792 (including VAT).
- Meitar at the time of hearing the evidence, and as part of its summaries, petitioned to rule in her favor in the total amount of ILS 560,295, plus linkage and interest differentials as of May 1, 2020, as follows:
- For the month of June 2020 and until December 2020 (inclusive) - ILS 253,848, taking into account that an alternative tenant was identified.
- For the months of April and May 2020, after the forfeiture of the guarantee - ILS 1,334.
- For the months of January 2021 until March 2022 (the end of the rental period) - ILS 159,038. An amount that reflects the rent that the Champions Workshop had to pay minus the amount that Meitar received from an alternative tenant (ILS 36,000 multiplied by 14 months, i.e., ILS 507,696 minus ILS 348,660).
- Expenses incurred by Meitar in respect of maintenance expenses of the common areas for 9 months when the leased area was abandoned (600 times 9) (section 23(d) of the summaries); the sum of ILS 7,313 for the preparation of an agreement that was not executed with an alternative tenant; A sum of ILS 24,570 in respect of brokerage fees for finding an alternative tenant.
- Agreed compensation - ILS 108,792 (including VAT), (calculated according to ILS 36,264 multiplied by 3 months).
She also petitioned for a ruling on legal expenses in the amount of ILS 29,024 (fees and expert fees), as well as attorney's fees in the amount of ILS 68,586.
- As part of the proceeding, affidavits of the main witness were submitted, the evidence was submitted and the testimonies were heard.
Mr. Uri Levy (hereinafter: "Levy") testified on behalf of the Champions Workshop; On behalf of Meitar, Mr. Hagai Anavi (hereinafter: "Anavi"), as well as the appraiser Mr. Asher Hindi (hereinafter: "the appraiser on behalf of Meitar").
- The main questions that require a decision are whether the Champions Workshop was entitled to terminate the lease agreement, in light of the coronavirus crisis; the issue of thwarting; whether the Champions Workshop is entitled to receive the value of the air conditioners it installed in the leased property; whether the Champions Workshop is entitled to a refund of half of the rent for the month of March 2020; whether the Champions Workshop is entitled to receive the forfeited guarantee for the months of April and May; what is the fate of the counterclaim? i.e., whether the Champions Workshop should be obligated during the lease period until a replacement tenant is found; whether Meitar is entitled to the agreed compensation;
I will discuss these and other questions that will arise later.