Caselaw

Civil Case (Rishon LeZion) 42165-05-22 Buildings Management, Cleaning and Maintenance Ltd. v. Keinan Services Ltd. - part 21

July 7, 2026
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He also declared that Prefecture was entitled to both payments from the new operators of the nursing home "such as: remuneration for the company's approval of the transfer of the tenants from it to the new operators", as well as additional income from the Ministry of Health "in respect of past residents for whom the accounting has not yet been made", as well as "the right to receive financial compensation from the Ministry of Health for his unilateral and erroneous activity during the Corona period - which caused heavy damage" (paragraph 29 of Uri's affidavit).

Uri testified that when a luxury activity was stopped, a final calculation had to be made, including collecting money from the Ministry of Health, and that at no stage did he think that luxury would not be able to pay its debts:

"A:          Putting things in order, that means charging everything you need from the Ministry of Health, if there are chances that suppliers are coming, then they are taken care of and the whole story is put in order.  Because of the place, because the activity stops.  But at no point did I think it would be impossible to pay the debts in full (p.  62, lines 13-16 of the transcript).

He also testified that in preparation for the cessation of luxury activities, the Ministry of Health delayed making payments,

while clarifying that receipts received from the Ministry of Health, including after the cessation of activity

prestige and prior to its sale to David, it was used to pay various expenses, including workers' wages and rent.

to the property owner, and added that in any case he knew that additional funds were coming from the

Health (p.  62, lines 30-31 of the minutes and p.  63, lines 9-10 of the minutes).

I find support for the above in clause 4.3 of the agreement for the sale of shares to David, in which it was noted that Prestige may receive receipts from the Ministry of Health for the period in which it operated the nursing home, and that Prestige has claims against the Ministry of Health in all matters related to "the eviction of tenants during the Corona outbreak in the nursing home operated by the company", and the parties will discuss the possibilities of action to exhaust Prestige's claims against the Ministry of Health, including examining the possibility of filing a lawsuit against the Ministry of Health.

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