| Tel Aviv-Jaffa District Court | |
| Before the Honorable Judge Rachel Barkai, Vice President October 29,2026
Civil Case 27862-07-22 V Equity Ltd. et al. v. Bat Yam Municipality et al.
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The Plaintiffs |
1.V Equity Ltd. 2. Dean Wachter 3. BDI Entrepreneurship and Investments Ltd. By Adv. Dr. Gilad Wexelman and Adv. Ariel Shachar From the law firm of Herzog, Fox, Ne’eman & Co.
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| Against
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The Defendants |
1. Bat Yam Municipality 2. Bat Yam Beach Company for Entrepreneurship and Development Ltd. By Attorney Aharon Sperber and Attorney Hagai Kahane |
Judgment
This action concerns the plaintiffs' claims of improper conduct, lack of good faith due to non-disclosure of material information, and even misleading on the part of the defendants who entered into an agreement with plaintiff 1 (hereinafter: the "Company"), in an agreement, following its winning of the tender for the construction and operation of assisted living, and even received payment in advance in the sum of ILS 5,850,000 from the Company, when the defendants knew or should have known that the Ministry of the Interior would not approve the transaction, since the proposed project contradicts the city's building plan that applies to the land. Given the aforesaid, the plaintiffs demanded the restitution of the funds as well as compensation for damages.
On April 3,2023, the Municipality refunded the company the sum of ILS 5,075,635.79 for the usage fees. This includes the addition of linkage differences to the Consumer Price Index from the date of payment until February 18,2021 (the date on which the Ministry of Interior's response was received, which signed this transaction).
The plaintiffs were not satisfied with this restitution and argued that linkage and interest differentials should be added to the restitution amount from the date the payment was made, including the payment of the VAT paid, as well as reimbursement of expenses incurred as well as compensation given the violations, misrepresentations and deliberate deception on the part of the defendants.
The undisputed facts
- Plaintiff 1 - Equity Ltd. (hereinafter: the "Company"), is a private company engaged in initiation and development.
Plaintiff No. 2 is a business entrepreneur who holds 50% of the company's shares and also serves as a director.
Plaintiff 3, BDI. Development and Investments Ltd. is a private company that holds 40% of the company's shares.
- Defendant 1 is the Bat Yam Municipality (hereinafter: the "Municipality").
Defendant 2 is a municipal corporation that constitutes an executive arm for the implementation of the municipality's policy decisions.