Caselaw

Civil Case (Tel Aviv) 27862-07-22 V Equity Ltd. v. Bat Yam Municipality - part 31

October 29, 2026
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There is no similar provision in relation to the payment of usage fees.

Given the above, I have no choice but to reject the Municipality's arguments on the matter.

Interim Summary

  1. Having determined the lack of good faith on the part of the Municipality in its conduct vis-à-vis the Company and determined that the duty of good faith applied to it in the fulfillment of the agreement, it was obligated to disclose the Company's ear regarding the position of the Ministry of the Interior regarding the tender in question as early as November 2,2016, and if it believed in good faith at the time that it could change the decree and obtain the approval of the Ministry of the Interior after the plan that applies to the land was changed, then when it accepted the position of the Ministry of the Interior in the matter of Suprematist in November 2017 and in the case of Omarta, it should have shared this information with the Company in order to sharpen the risk that the Company faces in order to be able to finance its affairs and risks.

All the more so in the later stages, when it acted improperly in labeling false representations to the company and dragged the company, at the stage of signing the second addendum to the agreement, to agree that it would fund the change in the zoning plan, knowing that this would not change the position of the Ministry of the Interior, in light of the response it received on March 12,2020 in the Omarta matter. 

  1. Given the aforesaid, the question of the amount of damage and compensation to which the company claims is confronted.

In order to decide this question, we must address the question, which is:

How would the company have acted in real time if it had been aware and aware of the position of the Ministry of the Interior, a position that the Municipality concealed from it, and what is the date within the timeline, as detailed above, in which it is reasonable to assume that the Company would have chosen to cancel the engagement with the Municipality, to stop its expenses in order to promote the project, and not to exhaust legal proceedings against the Ministry of the Interior in order to obtain the remedy of approving the contract that is the object of its winning the tender. 

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