Caselaw

Civil Case (Rishon LeZion) 42165-05-22 Buildings Management, Cleaning and Maintenance Ltd. v. Keinan Services Ltd. - part 11

July 7, 2026
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Roy even testified that: "I worked with prestige.  My contract was against prestige.  I know the man Uri" (p.  27, lines 14-15 of the transcript).

When asked if Uri paid Prestige "personally something...  Not through luxury, or a limited company," he replied: "Not that I remember" (p.  31, lines 14-18 of the transcript).

As has been ruled more than once, the rule is that when the contractual engagement is with the company, the organs and officers are not liable for breaches of the company's contract, and in this context I will turn to civil appeal 313/08 Azmi Nashashibi v.  Ihab Rinrawi (given on August 1, 2010): "As is well known, breach of contract by a company does not lead to the imposition of personal liability and liability on the organ or officer acting on behalf of the company [see: Matter A.  Barazani Services Ltd., supra, at paragraph 16); Civil Appeal 4612/95 Matityahu v.  Shatil, IsrSC 51(4) 769, 790 (1997) (hereinafter: the Matityahu case)].  The contractual engagement is with the company, and therefore, in such a situation, the rule is that the organs and officers are not liable for breaches of the company's contract.  There is a separation between the legal personality of the company and the organs and officers who are not responsible to anyone who entered into an agreement with the company."

In our case, even if there is no dispute that the sum claimed is a debt that was not paid to the plaintiff by prestige, given that Uri was not a party to the agreement, and it was not even specified on which grounds the plaintiff bases the alleged contractual cause of action in relation to Uri, and in any case no evidence was brought to prove the existence of a contract between the plaintiff and Uri, I did not find that the claim discloses a contractual cause of action against Uri.  Therefore, I reject the plaintiff's arguments that Uri should be obligated to pay her, by virtue of this ground.

Beyond the necessity, I will note that it was not claimed that Uri personally guaranteed the fulfillment of the prestige obligations set out in the agreement, and Roy testified that no personal guarantee was given by Uri, while adding that: "If there had been it, we would not be sitting here today," and later on: "If I had made a letter of guarantee about it, then it would have been much, much better, but, this is the situation at the moment" (p.  31, lines 19-23 of the transcript and p.  32, lines 1-2 of the transcript).

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