Afik News is the bi-weekly professional magazine of Afik & Co. Attorneys and Notary
SubscribeDeduction of employee pension funds without depositing such does not by itself justify piercing the corporate veil towards all officers of an NGO
Business, Corporate and Joint Ventures
Labor Law and Immigration
Dispute Resolution
An employee in an NGO had funds deducted from her salary but not transferred to the pension fund and for this she sought to personally obligate the NGO’s board members for the debts of the NGO to her. The National Labor Court held that the corporate veil should not be completely ignored but be pierced […]
Voluntarily contracting a company may only rarely impose personal liability on its officers
Business, Corporate and Joint Ventures
Dispute Resolution
A company breached a contract with an investor, who sought to be compensated by the company’s officers contending that they deceived him and acted in a negligent manner. The Court held that the officers are not personally liable to the investor. In order to impose personal liability on company organs, they themselves must act fraudulently […]
Posting a negative review on a business page on Facebook without actually buying the product or service may be deemed defamation
Commercial, Banking and Financial
Dispute Resolution
Privacy, GDPR, Confidentiality and protection of reputation
A business owner demanded compensation for defamation from an influential person who invited his followers on Facebook to write bad reviews on a business page after its owner expressed herself on a controversial public issue. The Court held that the followers who posted the defamatory comments are to compensate but dismissed the lawsuit against the […]
Who wants to volunteer to be personally liable for debts of an NGO?
Business, Corporate and Joint Ventures
A person volunteers to be a member of an NGO or even more – to participate in the actual management of the NGO by sitting in its board – and one fine day receives a statement of claim from an employee of the NGO demanding him to be personaly liable for pension funds to which […]
Absent a written agreement a real estate agent is not entitled to a brokerage fee even if was the efficient promoter of the transaction
Real Estate
Dispute Resolution
A middleman who assisted to promote a real estate transaction but neglected to first enter an agreement with the seller, demanded the seller to pay him a brokerage fee. The Court held that no brokerage agreement was entered into between the seller and the middleman, and therefore the middleman is not entitled to a brokerage […]
A party who does not raise at the first chance a contention that an arbitration clause exists agrees to its cancellation
Dispute Resolution
Two parties signed a contract which included an arbitration clause. When a dispute arose, one of the partied filed a lawsuit in Court. The other did not object and the proceeding was tried. However, when a new dispute arose, it was contended that this should be hear in Court due to the arbitration clause. The […]
A breach of fiduciary duty by resigning employee may lead to limitations on freedom of occupation even in lack of contract
Labor Law and Immigration
Dispute Resolution
Three employees resigned and commenced working for a competitor established by one of them, taking with them several clients, and continued working with such using information acquired during their employemnt. The Labor Court held that the employees and their new employer are to compensate the employer. Client lists, as well as, contacts, work processes and […]
