Civil Case (Jerusalem) 50435-11-19 Anwar Qawasmi v. Hatam Qawasmi

Judgment

Background

1. The late Mr. Hussein Qawsmeh (hereinafter: Hussein), the father of defendants 4,1, 6 and 7 and the husband of defendant 5 (hereinafter: the defendants), held the land known as Plots 171 and 133 (originally Plot 81) in Block 30601 in Wadi a-Ram in the Atarot Industrial Zone, on the Jerusalem-Ramallah Road (hereinafter: the Real Estate). A gas station has been built on the land that has been operating there since the mid-1950s.

On April 30,1995, Hussein signed a power of attorney for the transfer of 1/3 of the rights in the land to the plaintiff, Mr. Anwar Kausmi (hereinafter: the plaintiff), who is his half-brother.

On May 1,1995, a partnership agreement was signed between the plaintiff and Hussein, in which it was agreed that the profits from the gas station's business would be divided between them in such a way that 2/3 would belong to Hussein and 1/3 to the plaintiff, according to their relative share in the land.

2. In 2003, Al-Quwasmeh Lamakhrokat Ltd. (hereinafter: the Company) was established and registered with the Registrar of Companies on August 5,2003.  The purpose of the company, according to its articles of association, was to engage in any legal purpose, including the management of gas stations.  The company's share capital included 90,000 ordinary shares.  Hussein was allocated 60,000 ordinary shares and the plaintiff was allocated 30,000 ordinary shares.  Hussein and the plaintiff signed the first declaration of directors and on December 23,2003, a notice was submitted to the Registrar of Companies regarding their appointment as directors.  Each of them was granted the right to sign on behalf of the company.
3. Hussein, who had been ill during the last years of his life, left the management of the company in the hands of the plaintiff, who in practice became a sole director in it and has the exclusive right to sign on its behalf. Hussein passed away on July 14,2018.  On March 20,2019, an inheritance order was issued in the Sharia Court in Jerusalem, according to which the defendants are his heirs (the wife, defendant 5, inherited 10/80 shares, the sons defendants 1,2, 6,7 inherited 14/80 lots each, and defendant daughters 3 and 4 inherited 7/80 shares each).  On July 18,2019, the company notified the Registrar of Companies of the transfer of the shares from Husin to his heirs according to their share of the inheritance.
4. Hussein's death sparked a dispute between the plaintiff and the defendants, both in connection with the way the plaintiff managed the gas station and distributed its profits during the years in which he served as its sole manager, and regarding the manner in which it would be managed in the future and the way the defendants would integrate into it. As a result, the plaintiff and the defendants filed lawsuits with the courts:

On October 3,2019, the defendants filed a lawsuit against the plaintiff in the Family Court, in which they petitioned for the remedy of providing accounts in relation to the company's activity over the past seven years, as well as requiring him to transfer their late father's share in the company until the day of his death, and to transfer their share in the company after his death according to their share in the company's shares.  The hearing was filed and the request for interim relief was transferred to the District Court (decisions of the Honorable Judge M.  Dviri Rosenblatt of October 3,2019 and October 28,2019).  This claim was heard by the Honorable Judge A.  Ron in Civil Case 6233-10-19 (hereinafter: the parallel proceeding) and a judgment was rendered.