Caselaw

Civil Case (Tel Aviv) 58538-05-19 Michael Benz and 52 others v. Appeal of the Financial Case – Supreme Court Guy Nof - part 4

May 29, 2026
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The contractual system addressed the possibility that at the end of the day, the rights would not be approved to the requested scope.  For this purpose, the sharing agreement stipulates an "emission mechanism" (in paragraph 5.8), according to which if the change in the zoning plan - which increases the number of housing units - is not approved, members will be expelled from the group to the extent that it is not possible to build their housing units, and the money they paid will be returned to them (as stated in paragraph 5.9).

  1. At the same time, the planning officials who accompanied Ms. Or conveyed optimism. Muallem served as the architect of Group 104, and at the beginning of Group 102, he also served as an architect on its behalf.  He testified about the policy adopted by the Ramat Gan Municipality, in light of which it was decided to cooperate between the groups, in order to maximize the building rights on the two lots.  He noted that the municipality (p.  675 of the transcript, S.  30 and onwards):

She was in favor of overcrowding, she was in favor of increasing rights, the city engineer's perception was that the center of the country should be crowded and not the periphery, and that we should build as much as possible in the centers of the main cities.  The Jabotinsky Axis is a very, very significant axis in Ramat Gan and in Israel in general, where construction to the height is possible and logical...

The rights of 104 at the time made it possible to reach the size of 130 apartments, 120, 130 apartments, that's what I looked back a little bit and saw by the height of the buildings...

After we added the number 102, the project grew in my opinion to the size of 40, 50 housing units...  Orders of magnitude of multiples are very high as the Ramat Gan Municipality has pushed forward.

Other professionals testified that they believed that it would be possible to obtain even broader building rights.  This showed that as of the date of the formation of Group 102, there was indeed programming for the construction of the complex of housing units so that most, if not all, of the members of Group 102 would receive the coveted housing units in the center of Ramat Gan.

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