Legal Updates2019 found

Investors transferred sums of money to company owners, based on acquaintance and prior friendship between the parties, for the purpose of the company’s activities. The investors contended that the funds were transferred as a loan which the shareholders of the company are required to repay, while the shareholders contended that the funds constitute a business […]

A medical distributor received a license from the European Medicines Agency (EMA) under the appropriate regulatory framework. A competitor petitioned the EMA for revocation of the license, as it contented that the grant of the license, although not exclusive, disrupts the fairness of the market within the economic union, due to the fact that the […]

A municipal water corporation in the city of Kharkiv, Ukraine, demanded to execute payment of over ILS 31 million under autonomous guarantees given to it by an Israeli company after an agreement to carry out a water infrastructure project was canceled due to the ongoing war in Ukraine. The District Court granted the motion for […]

One of two shareholders in a company contended to have suffered personal damage due to the other shareholder entering into agreements with the company which were made behind his back and without his knowledge and that he never received the consideration for them. The Court rejected the claim and held that the damage caused is […]

A lease agreement for rent an event hall was terminated after the lessee did not pay rent for months and accumulated a debt of hundreds of thousands of shekels. The Lessee refused to make payments to circumstances related to the Covid19 epidemic. The Court decided that the lease agreement may be terminated and the lessee […]

Ramallah based employees of an American start-up company that was liquidated in the United States of America sought to obligate two Israeli directors of the company, who managed a venture capital fund that was one of the company shareholders and were thus appointed directors, to personally pay social benefits due to them. The Labor Court […]

An employer failed to wire the required deductions that were made from the employee’s salary to the designated pension fund. The employee contended, inter alia, that the controlling shareholder and manager of the company is to pay the lacking deductions and be personally liable for the damage caused to him. The Labor Court partially accepted […]

A company which also serves as a general partner in a publicly traded partnership, stipulated in its shareholders agreement and in its articles of association, that one of the members of the board of directors, which also included external directors, shall have exclusive discretion in any decision regarding professional matters which are not financial. The […]

AB-Inbev, which produces various beer brands (Corona, Beck, Stella, Leff, Budweiser and more), canceled after 30 years a distribution agreement with an Israeli distributor and contended that all legal proceedings between it and the distributor are required to take place in an ICC arbitration under Swiss law because in each purchase order is done online […]

Two bids in a tender received the same weighted score when the terms and conditions of the tender did not stipulate a “tie-breaker” mechanism. Despite this, the tender committee preferred the cheapest bid without reasoning. The Court cancelled the decision made by the tender committee and held that the tender committee will hold a renewed […]

A shareholder of a company commenced voluntary liquidation of the company even though he knew that there was a debt to another company that provided services to the company in the amount of approximately ILS 200,000 which he failed to settle. The Court accepted the claim and held that the corporate veil is to be […]

A distributer who worked with a company while being granted freedom to manage the business, contended that he was an employee of the company because he was at times presented by the company to third parties as such and demanded that social rights be paid to him by virtue of a working relationship between the […]

A client filed a claim against Facebook in Herzliya, Israel for damages caused by Facebook due to poor service, but the rules of use states that any claim against Facebook must be governed under California law. The Supreme Court held that the governing law clause depriving Facebook’s consumers, including small businesses that purchased advertising services […]

Two people founded a medical tourism company. In retrospect, it turned out that one of them provided services to company clients through a business of his wife, which uses a domain almost identical to the company’s domain name, but with a hyphen (the domain of the company is www.topichilov.com, while the competing business uses: www.top-ichilov.com). […]

Two companies with material market share in the field of genetic screening merged into a single entity. The EU Concentration Commission received a complaint from a third party that the merger is hindering EU Competition law and sought to cancel the merger. The Court held that the merger should not be cancelled although both companies […]

A property owner entered into a rental agreement with tenants and at the same time the parties came to an oral agreement regarding the purchase of the property by the tenants in the future. After the tenants announced that they were unable to meet the purchase price, the parties signed a termination agreement but such […]

An activist published on social media publication of personal details of Dr. Sharon Alroy-Preis, Head of Isralei Public Health Services in which she condemned her and her public work. The Court held that the case justified issuing a restraining order. The law is intended to prevent harassment of a person, with the emphasis placed on […]

An investment firm entered into agreements with the controlling shareholders of a number of private companies under which it was granted options in the private companies. After the activity of the private companies was transferred to a corporation which IPOed on the London Stock Exchange, the investment firm sought to exercise the options, but the […]

Two people entered into a business venture and determined that the revenues from its activity will be equally share, but no agreement was executed. One of the parties chose to retire from the venture but contended to be owed his share of future revenues. The Court held that the date for determining the settlement between […]

An accountant copied to his business Facebook page professional posts and advertising materials that were created and published previously by a competing accountant, while presenting the posts as his original works. The Court held that the publication of the posts constitutes a violation of copyright law which entitles the competing accountant to statutory compensation without […]

The Tenders Committee selected the winner of a tender that submitted a more expensive bid without giving the other bidder, whose bid was cheaper, the right to a hearing and without giving reasons for this in the minutes. The Court accepted the petition and held that the Tenders Committee had acted in violation of the […]

A company and its owner entered into an agreement for the sale of the company’s activities. As part of the transaction, the owner signed a separate agreement, the main part of which was a commitment of non-competition, and received a separate financial consideration against this commitment, which was reported to the tax authorities as income […]

A ship registered in the Maritime Vessel Registry in Libya was arrested in the port of Burgas in Bulgaria and sold by a forced sale for the purpose of realizing a lien in favor of a creditor. After several more transactions, the ship was purchased by an Israeli entity who registered it in the Maritime […]

An employer breached its obligation to an employee to raise his salary after six months of employment. The Labor Court dismissed the employee’s claim for enforcement of the employment agreement due to the employee’s silence for years which constitutes consent. A unilateral change of a stipulation in the employment agreement (explicit or implied) by an […]