Caselaw

Civil Case (Tel Aviv) 13203-10-16 Sol.E Investments & Entrepreneurship Group Ltd. v. Landau Reznieli Cafe Chain - part 14

January 7, 2025
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We did not find support in the bookkeeping of the partnership for the payment of rent to Moshe Zilberberg or Liel Premium for the use of the services and the warehouse on the first floor, during the period after Liel Premium acquired the ownership of the first floor of the building - after December 15, 2014.

Yakubov's partner, Landau, who handled the financial aspects of the partnership, testified in his interrogation: "Q.  Did it appear in the bookkeeping of this payment [rent for the use of the warehouse and toilets on the first and 10th floors]? A.  No..." [p.  864 of the transcript, lines 28-29].

Sixth, Sol entered into a deal for the purpose of operating a café in Herzliya.  It was not possible to obligate Sol to reduce the area of the café on the ground floor, and to build instead of the serving area in the café or in place of some of the seating areas in the café - a warehouse and services with a total area of 9 square meters: a warehouse with an area of 6 square meters, and a toilet with an area of about 3 square meters. 

It is not possible to rule out the possibility that Sol would not have entered into the transaction, if it had been required prior to the transaction, to reduce the area of the café on the ground floor, and to build a toilet and a warehouse on the ground floor with a total area of 9 square meters - in order to obtain a business license to operate a café. 

In this regard, we should mention that the area of the café on the ground floor is 96 square meters [see Appendix 3 to the affidavits of defendants 1-4], and the area of the toilets and the warehouse that had to be built was about 10% of the area of the café.

In the alternative of reducing the serving area in the café, this would have made it difficult for Saul to operate the café. 

The alternative of reducing the number of seats in the café, in order to add toilets and a storage room on the ground floor, would have reduced Sol's revenues, as a result of reducing the number of seats in the café.

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