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Civil Case (Tel Aviv) 24838-05-24 Gideon Fishman et al. v. Thai Investment and Trade Ltd. - part 2

June 8, 2025
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A sharing agreement dated November 26, 2017, was indeed signed by the Applicants and the other rights holders, also by Thai (hereinafter - the Sharing Agreement), in which Thai's status as the "Group Manager" was arranged, inter alia:

"The partners intend to promote the approval of the plan in a process that requires agreements and various actions with the planning authorities and public authorities...  And this is through the group manager and the representative..." (Clause 3.1 of the Agreement); that "the manager of the group will be Tai Investment and Trade Ltd., whose actual appointment is constitutes the signing of each of the partners in this agreement" (clause 5.1.2 of the agreement).

  1. The sharing agreement includes an arbitration clause according to which

"In any case of a dispute and/or demand and/or claim by one of the partners in this agreement against the other, and/or in the event of a dispute and/or demand and/or claim by one or more of the partners against the group manager...  The matter will be transferred to the decision of a lawyer arbitrator whose expertise is dealing with real estate matters, who will be appointed by the chairman of the Civil Case District Committee of the Israel Bar Association...  or to the decision of another arbitrator as agreed upon by the partners.  The arbitration proceeding will begin and end within 45 days, including the rendering of the arbitral award" (paragraphs 13.1-13.3).

  1. The Applicants and the Chambers are conducting an arbitration proceeding that is in its early stages.

The applicants, who wish to add Lifshitz and Kuba to the arbitration, claim that Lifshitz acted against them in a "clear conflict of interest...  sharp and inherent in his position and the trust of the applicants, while in parallel with the group's aspiration to acquire the real estate rights of a "recalcitrant" owner - the Tasawir company in a tax appeal (hereinafter - Tasawir), which held 16% of the remaining rights in the western complex, Lifshitz created a new partnership with a nearby landowner, Mr. Michael Shafar, and the Tatterhead company under his control, and jointly purchased with them, instead of with the applicants, the rights in Tasawir's land through the Cuban company he controls.  Thus he preferred his own interests, undermined the interests of the other rights holders, "refused to sign the partnership agreement with his hat and the new partnership he created", and even tried to acquire from the applicants their rights in offers that are considerably lower than their market value.

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