Caselaw

Civil Case (Rishon LeZion) 42165-05-22 Buildings Management, Cleaning and Maintenance Ltd. v. Keinan Services Ltd. - part 23

July 7, 2026
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A review of the details of the current account transactions shows that receipts were indeed received from the Ministry of Health.  For example, on August 6, 2021, the Ministry of Health transferred the sum of ILS 1,200,159.66 to Preuka's bank account.  The Ministry of Health also transferred funds to the account on August 16, 2021, and on September 1, 2021 (after Uprekash stopped operating the nursing home), the Ministry of Health transferred the sum of ILS 968,000 to the account.

Given the above, I determine that the plaintiff did not prove that Uri made a false representation that the debt of Prestige would be paid to the plaintiff, despite his knowledge that the debt would not be paid.  On the contrary, from the evidence detailed above, it appears that Uri's claim that he was convinced that Prestige would meet its obligations was backed up by his detailed affidavit, his testimony, and the documents of Bank Hapoalim and the Ministry of Health.

  1. Not only was it not proven that Uri made a false representation as claimed by the plaintiff, but it appears from the testimonies and evidence that Uri made an effort to negotiate with the suppliers of Prestige in order to examine the possibility of settling its debts to those suppliers.

Uri stated that after the termination of the lease agreement, and the cessation of luxury activity as the operator of the nursing home, he continued to "act to arrange the termination of the company's activity", including arranging payments to suppliers and collecting payments due to prestige, and even spoke with the plaintiff's representative in an attempt to "reach an immediate partial payment arrangement instead of waiting for full payment later", but the plaintiff's representative refused.

He also testified that:

Witness Mr. Weisbord:           "This money was used, after all, suppliers, most of the suppliers, the credit they give is current 60, current 90, even current 120, and that's exactly what I started doing, vis-à-vis suppliers.  To sit with them, whoever should have issued me a credit, issued me a credit.  Someone you could get along with.  Exactly the process I talked about earlier.  In other words, to concentrate everything that comes on the one hand, to concentrate and take care of everything that needs to be paid on the other.  And close this thing, the activity in the most orderly way possible." (p.  64, lines 6-11 of the transcript).

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