Does Max indeed have unequivocal information and evidence at its disposal? The hurdle before it is high. This is not an allegation of an ordinary "family of violations". At issue is a claim of real fraud. The shares of Superstock were not registered in the name of Mr. Shimshon, but in the name of his brother. According to Max, this is a registration that is intended to conceal the reality altogether. As is well known, the burden of establishing a claim of fraud is more onerous in terms of the strength of the required evidence, even in the fields of civil law (Civil Appeal 475/81 Zikri v. Clal Insurance Company Ltd., IsrSC 40(1) 589,606-605 (1986)). However, the considerable burden of establishing the matter does not fall on Max Stock only in the framework of this litigation. She had to submit herself to him in real time, before she sent the notice of cancellation, in order to see that such a revocation was indeed possible and justified. As we have seen, this is the mitzva of the duty of good faith that began in the circumstances of the case to an increased extent.
- As will be clarified immediately, it turns out that the data at her disposal was not enough.
Transcript of Aviani's meeting with Mr. Sheetrit
- From Mr. Max's affidavits, it emerges that at the beginning of the process, rumors and suspicions reached him according to which " Shimshon was involved in competing activity in complete contradiction to the obligations undertaken by the defendant (and which Mr. Shimshon personally undertook in the framework of the franchise agreements). Mr. Shimshon's involvement in the competing activity was so deep and blatant that it can be said that he became a real partner in a competing chain called 'Super Stock'" (paragraphs 18-19 of his affidavit in the Ashdod lawsuit).
When Mr. Max was asked in his interrogation from whom he heard the rumors, he replied that they were suppliers with whom he had worked but did not remember concrete names that had been given to him (p. 93, Q.31 onwards). As to the date on which they reached him, he noted that it was during 2017 but he could not callon a concrete date (ibid., Q.34 onwards).