Caselaw

Civil Case (Tel Aviv) 58538-05-19 Michael Benz and 52 others v. Appeal of the Financial Case – Supreme Court Guy Nof - part 2

May 29, 2026
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We will deal with all of these and more when we come to settle the disputes on the agenda, which are many, complexandbranched.

Background

  1. In 2012, Ms. Inbal Or (hereinafter: Ms. Or or the Organizer) organized a purchasing group for the construction of a residential project on a plot at 104 Jabotinsky Street in Ramat Gan (hereinafter: Group 104 and Lot 104, respectively). At the time, Ms. Or was in the midst of a boom as a real estate developer, and enjoyed a reputation that was accompanied by aggressive marketing campaigns for the projects she promoted.  The said purchasing group was organized by Or City Real Estate, which was one of the companies under its control (hereinafter referred to as Or City).
  2. After the formation of Group 104, Ms. Or advertised a residential project of 2-3 room apartments, at a price of approximately ILS 1 million per apartment in the adjacent lot, at 102 Jabotinsky St. in Ramat Gan (hereinafter: Group 102, the Group, Lot 102 and the project).  The area of the lot was 445 square meters, but after expropriation, 215 square meters remained that could be exploited.

The business thinking behind the move was that the combination of forces between the two lots could lead to the establishment of a joint project, which would increase the number of housing units that could be built on the site, for the benefit of the group organizer and her members.  However, the current planning situation did not allow the realization of the vision, the realization of which depended on the approval of the various plans in the authorized planning institutions.  Against this background, it was necessary to purchase the rights in Lot 102, establish the purchasing group relevant to it, and submit plans that would enable construction on both lots.

  1. The Ottoman Settlement [Old Version] 1916In order to promote the project, the Greeni City Company entered the picture in a tax appeal (hereinafter: the Greeni City Company or the Greeni Company), which is owned by the Or City Company. The latter entered into an agreement on June 18, 2012 for the purchase of Lot 102 from its owners - Kempel Ramat Gan in a tax appeal (hereinafter: Kempel or the original owners).  Greeny City was the one that served as the organizer of the purchase group of Lot 102, and as the one who sold the rights in the lot to its members.
  2. 12-34-56-78 Chekhov v. State of Israel, P.D.  51 (2)The time has therefore come to establish Group 102.  Or launched a publicity campaign in relation to the project.  Those wishing to join the group have signed a number of agreements and documents.  First, the group members, each separately and at different times, signed a join form (hereinafter: the Join Form) through the organizer'smarketing staff.

Subsequently, the members of the class signed additional agreements by the defendants - Adv. Guy Nof (defendant 1; hereinafter: Adv. Nof) and Adv. Yoni Aharonson (defendant 2; hereinafter: Adv. Aharonson).  The two defendants acted on behalf of the law firm of Cassuto-Nof, which was hired by Ms. Or to handle the project.  There is no dispute that the various agreements were drafted by Adv. Nof, who acted on the basis of a wording prepared by the previous representatives of Group 104, andin accordance with the guidance he received from Ms. Or.

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