The partnership waived the collection of advertising fees, and on May 9, 2016, Sol had already issued a warning to the partnership for misrepresentation prior to the cancellation of the agreement - due to the lack of the possibility of issuing a business license.
Since it was not possible to issue a license to operate a café due to the lack of a toilet cubicle and a warehouse, there was no point in the publications, and it was not possible to charge Sol for the costs of publications between April 16 and June 16, 2016.
The claim regarding non-payment of advertising fees during the months of April 16 to June 16, 2016 is dismissed.
- Compensation for Delay in Payments - Section 75B(B8) of the Claim:
Once the claim for the inventory debt, the consideration in the transaction, the advertising fees is rejected, the claim for late payment must be rejected.
As for the royalty debt for the months of April 16 to June 16, 2016 [two and a half months], this amount must be deducted from the amount of restitution that the partnership must return to the plaintiffs upon the cancellation of the agreements by Sol.
The amount of restitution exceeds the royalty debt of two and a half months.
Saul testified at p. 450 of the transcript, lines 27-30: "S. ... Because of the warehouse problem [the issue of the license - Y.G.] then you didn't pay all the royalty payments. A. Of course."
It is not justified to charge compensation of ILS 1,000 per day for a delay in payment of royalties for a period of two and a half months in the circumstances detailed, especially when Sol's warning letter, regarding the inability to issue a license to manage the café due to the lack of services and a warehouse, was issued on May 9, 2022 [Appendix 22 to the claim].
- Conclusion:
- Defendants 1-5, jointly and severally, will pay plaintiffs 1-2 ILS 1,032,438, together with linkage differences and interest from the date of filing the claim [October 10, 2016] until the actual payment - a refund of consideration paid in the concession agreement and the sale agreement.
- Defendants 1-5, jointly and severally, will pay defendants 1-2 -91.25% of the ILS 5,000 [reimbursement for legal services in the transaction] together with linkage and interest differentials from August 8, 2015 until the actual payment [invoice 10102].
Defendants 1-5, jointly and severally, will pay defendants 1-2 -91.25% of ILS 1,000 [reimbursement of payment for legal services in the transaction] together with linkage differences and interest from December 31, 2015 until the actual payment [invoice 10178].