| In the Supreme Court sitting as a Court of Civil Appeals |
| Civil Appeal 4024/13 |
| Civil Appeal 5280/13 |
| Civil Appeal 5970/13 |
| Before: | The Honorable Judge Y. Amit |
| The Honorable Judge Z. Zilbertal | |
| The Honorable Judge M. Mazuz |
| Appellants Other Municipality Applications 4024/13: | 1. Tikva – a village for vocational training in Giv’ot Zaid Ltd. |
| 2. Gideon Derman, CPA – in his capacity as a special authorized manager of appellant 1 | |
| 3. Moshe Fishman and 77 others |
| Against |
| Respondents Other Municipality Applications 4024/13: | 1. Arie Pinkovich |
| 2. Daniel Rebves
3. Shanhav Noa Rebes 4. Yehudit Barel (Respondents 2-4 are the replacements of the late Peretz Rabas) |
|
| 5. Gideon Sharon
6. Hila Sharon 7. Goni Sharon 8. Dror Sharon 9. Amnon Sharon 10. Uri Sharon 11. Dan Sharon (Respondents 5-11 are the replacements of the late Aryeh Sharon) |
|
| 12. Estate of the late Yechiel Gutwein z”l
13. Shimon Horn 14. Migdal Insurance Company in Tax Appeal 15. Yehuda Shaporan, CPA 16. Estate of the late CPA Harry Milner z”l |
| Appellant Other Municipality Applications 5280/13: | Arie Pinkovich |
| Against |
| Respondents Other Municipality Applications 5280/13: | 1. Tikva – a village for vocational training in Giv’ot Zaid Ltd.
2. Gideon Derman, CPA – in his capacity as a special authorized manager of appellant 1 3. Moshe Fishman and 102 others 4. Yehuda Shaporan, CPA |
| 5. Daniel Rebves
6. Snives Noa Rebes 7. Yehudit Barel (Respondents 5-7 are the replacements of the late Peretz Raves) |
|
| 8. Gideon Sharon
9. Hila Sharon 10. Goni Sharon 11. Dror Sharon 12. Amnon Sharon 13. Uri Sharon 14. Dan Sharon (Respondents 8-14 are the replacements of the late Aryeh Sharon) |
|
| 15. Estate of the late Yechiel Gutwein z”l
16. Nira Dan Goor 17. Shimon Horn 18. Migdal Insurance Company in a Tax Appeal 19. Estate of the late CPA Harry Milner z”l |
| Appellant Other Municipality Applications 5970/13: | Yehuda Shaporan, CPA |
| Against |
| Respondents Other Municipality Applications 5970/13: | 1. Tikva – a village for vocational training in Giv’ot Zaid Ltd.
2. Gideon Derman, CPA – in his capacity as a special authorized manager of appellant 1 3. Moshe Fishman and 77 others 4. Arie Pinkovich |
| 5. Daniel Rebves
6. Snives Noa Rebes 7. Yehudit Barel (Respondents 5-7 are the replacements of the late Peretz Raves) |
|
| 8. Gideon Sharon
9. Hila Sharon 10. Goni Sharon 11. Dror Sharon 12. Amnon Sharon 13. Uri Sharon 14. Dan Sharon (Respondents 8-14 are the replacements of the late Aryeh Sharon) |
|
| 15. Estate of the late Yechiel Gutwein z”l
16. Shimon Horn 17. Migdal Insurance Company in a Tax Appeal 18. Estate of the late CPA Harry Milner z”l |
| Three Appeals to the Haifa District Court’s Judgment in Civil Case 163/03 [Published in Nevo] Given on March 21, 2013 by the Honorable Judge Bracha Bar-Ziv |
| Date of Meeting: | 5 Tammuz 5775 (June 22, 2015) |
| On behalf of the appellants Other Municipality Applications 4024/13 and Respondents 1-3 Other Municipality Applications 5280/13 and Other Municipality Applications 5970/13 : |
Adv. Avni Yair; Adv. Yehuda Shoali; Adv. Limor Forer |
| On behalf of the appellant other municipal applications 5280/13 and respondent 1 other municipal applications 4024/13 and respondent 4 other municipality applications 5970/13:
On behalf of the Appellant Other Municipality Applications 5970/13 and Respondent 15 Other Municipality Applications 4024/13 and Respondent 4 Other Municipality Applications 5280/13: On behalf of Respondents 2-4 Other Municipality Applications 4024/13 and Respondents 5-7 Other Municipality Applications 5280/13 and Other Municipality Applications 5790/13: On behalf of Respondents 5-11 Other Municipality Applications 4024/13 and Respondents 8-14 Other Municipal Applications 5280/13 and Other Municipality Requests 5790/13: On behalf of the Respondent 12 Other Municipality Applications 4024/13 and Respondent 15 Other Municipality Applications 5280/13 and Other Municipality Applications 5790/13 and on behalf of the Respondent 16 Other Municipality Applications 5280/13: On behalf of Respondent 13 Other Municipality Applications 4024/13 and Respondent 17 Other Municipality Applications 5280/13 and Respondent 16 Other Municipality Applications 5790/13: On behalf of the Respondent 14 Other Municipality Applications 4024/13 and Respondent 18 Other Municipality Applications 5280/13 and Respondent 17 Other Municipality Applications 5790/13: On behalf of Respondent 16 Other Municipality Applications 4024/13 and Respondent 19 Other Municipality Applications 5280/13 and Respondent 18 Other Municipality Applications 5790/13: |
Adv. Yitzhak Osmo; Adv. Shoshana Erez Adv. David Forer; Adv. Yaron Herman; Adv. Amir Avni; Adv. Limor Levy Adv. Harel Tiktin Adv. Assaf Shimashi Adv. Oded Israeli; Adv. Kobi Rosenberg No stabilization Adv. Lotan Teitler Adv. Tami Greenberg; Adv. Ronit Varshai |
Judgment
Justice Z. Zilbertal:
Three consolidated appeals against the judgment of the Haifa District Court of March 21, 2013 (the Honorable Judge B. Bar-Ziv) in Civil Case 163/03, in which the question of the liability of directors, CEO, accountants and an insurance company for damages to the plaintiff company was discussed.
For the sake of good order, and before I turn to the description of the factual background, I will present the appellants and the respondents in the three appeals before us:
(-) Tikva - A village for vocational training in Giv'ot Zeid in a tax appeal - Appellant 1 Other Municipality Applications 4024/13 and Respondent 1 Other Municipality Applications 5280/13 and Other Municipality Applications 5970/13, is a company that provides sheltered persons, with intellectual disabilities at various levels, a framework for housing, employment and supervision for the duration of their lives in the village located in the Tivon area (hereinafter: the Company andthe Village, respectively).
(-) Gideon Darman, CPA - the appellant 2 other municipal applications 4024/13 and the respondent 2 other municipal applications 5280/13 and other municipal applications 5970/13, is a special manager of the company, who was appointed according to the decision of the Haifa District Court in the circumstances that will be described in detail below (hereinafter: CPA Darman).
(-) Moshe Fishman and 77 others - the appellants 3 other municipal applications 4024/13 and the respondents 3 other municipal applications 5280/13 and other municipal applications 5970/13 are the parents of some of the shelters in the village (according to a list attached to the notice of appeal). It should be noted that the Kfar Hatikva Parents Corporation in a tax appeal holds 1,000 basic shares of the company.
(-) Aryeh Pinkowitz - the appellant other municipal applications 5280/13, respondent 1 other municipal applications 4024/13 and respondent 4 other municipal applications 5970/13 served as the company's CEO and director at the relevant times (hereinafter: Pinkowitz).