Caselaw

Civil Case (Center) 38712-06-23 Coover Agencies Ltd. v. Pitkit-Printing Factories Ltd. - part 5

July 30, 2026
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The second element - "unlawfully" - the question of whether the enrichment was done unlawfully is decided, inter alia, on the basis of the question of whether it is an unjust enrichment or whether it contradicts the sense of conscience and honesty.  The tests of justice and honesty are objective tests (see Civil Appeal 5768/94 A.S.I.R.  Import, Production and Distribution et al.  v.  Consumer Products Accessories Forum Ltd., IsrSC 52(4) 289).

The third element - "which came to him from another person" - i.e., the existence of a causal connection that testifies that the enrichment came to him at the expense of that other person.

  1. In our case, the above conditions are met, in relation to each of the defendants:
  1. Each of the defendants got rich in the Liberty-Pitkit deal:

Liberty acquired the shares of Pitkit, which is indisputably a stable and very profitable company;

Shahar and Piron received shares in Liberty, with Shira Dollar testifying that they did not provide equity to finance the acquisition because they brought about the transaction (p.  281 of the transcript at paras.  3-5).  Although the shares they received are minority shares, Shahar also serves as a director and CEO of Liberty, while Firon served as legal counsel to Liberty, and naturally, they were presumably paid for their services.  In addition, CPA Alfasi testified that when Firon transferred his shares in Liberty to the other shareholders, he received consideration in the amount of several hundred thousand shekels (p.  299 of the transcript at paras.  25-27).

  1. This is an unjustified enrichment that contradicts the sense of conscience and honesty, and the proof of this is the testimonies of Shahar, Firon and CPA Alfasi, all of whom testified that the plaintiff is entitled to some kind of brokerage fee:

According to Shahar: "But I'm a human being, he brought the news, and we, by the way, don't deny it." We don't deny it.  We didn't come and said we don't know who it is, we don't want to pay anything..." (p.  373 of the transcript of s.  29, p.  374 of s.  1 and 3).

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