| Tel Aviv-Jaffa Magistrate’s Court
|
| Civil Case 35033-04-21 Lawful Refund in Tax Appeal v. Dynamometer Factories for Vehicle Testing 1965 Ltd. |
| Before the Honorable Judge Dalit Vered | |
| Theplaintiffs: | Lawful Refund Ltd. |
| Against | |
| Thedefendants: | Dynamometer Factories for Vehicle Testing 1965 Ltd.
By Adv. Tamir Glick and Adv. Reut Friedenreich of the Lieblich Moser Glick Law Firm |
Judgment
A monetary claim in the amount of ILS 581,189, plus contractual interest, claiming a breach of the defendant's undertaking to pay the plaintiff's full salary, in accordance with the agreement signed between the parties.
Summary of the facts
Towards 2010, the issue of renewing the lease period of property lessees by the Tel Aviv Municipality for a period of 49 years was on the agenda. The municipality demanded an annual lease fee of 5% and at a capitalized rate for 49 years - 91% of the value of the land. As a result of this demand, groups of tenants were formed, which sought to reduce the required lease fees.
One of the groups was formed through the work of Mr. David Kotler, who operated first through a tax appeal compensation and control company (hereinafter: "Kotler" and "Compensation and Control", respectively) and then through the plaintiff. The team under Kotler eventually consisted of individual tenants.
On December 10, 2009, an agreement was signed between the defendant for compensation and control, for the payment of wages for the realization of the defendant's rights vis-à-vis the Tel Aviv Municipality, regarding the reduction of lease payments, in relation to a total area of 1,880 square meters, known as Plot 19 in Block 7108 (hereinafter: the "Agreement"). In addition, the defendant signed a letter of authorization, addressed to the Tel Aviv Municipality, in which she authorized the Compensation and Control Authority to carry out actions on its behalf. In accordance with the provisions of the agreement, compensation and control assigned her right to the plaintiff.
At the same time, the defendant signed a representation agreement and fees with the Meyuhas law firm.
In July 2010, a petition was filed on behalf of the defendant and the other members of the class (Administrative Petition 10820-07-10) [Nevo]. Subsequently, similar petitions were filed on behalf of other groups of lessors, and the hearing on their matter was consolidated in Tel Aviv. 37967-10-10 Alfia and 161 et al. v. Tel Aviv Municipality [Nevo]. An interim arrangement that was reached as part of a mediation proceeding was adopted at the end of the proceeding in 2019, in a mediation arrangement, which received the force of a judgment (hereinafter: the "Mediation Arrangement"). According to the mediation arrangement, the lessees were given the right to choose to extend the lease period in advance to 49 years or for periods of 7 years each time, with the option of switching from the 7-year track to the full lease track, under the conditions set out in the mediation agreement. The rate of the capitalized lease fees for a period of 49 years was set at 65.407% of the value of the lot instead of 91%, as demanded by the Municipality, and the rate of the lease fees for a period of 7 years was set at 20.309% instead of 29% (hereinafter: the "Legal Proceeding").