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May 27, 2023
An employee who was offered worse conditions upon termination of a termed contract is entitled to severance pay
Labor Law and Immigration
Dispute Resolution
At the end of the season a soccer player of Hapoel Haifa was offered a materially lower salary for the next season. The Labor Court accepted the claim and held that the player is entitled to severance pay. Non renewal of a contract is as dismissal and the employer must demonstrate that it offered the […]
May 14, 2023
Determining differences in wages and working conditions may be unlawful only if the difference is based on invalid considerations of discrimination
Labor Law and Immigration
Dispute Resolution
Employees in Haifa contended that the employer who paid them a low wage, compared to other employees who did the same job in another city, discriminated against them on the basis of place of residence. The Court rejected the claim because it was not found that the difference is based on invalid discrimination considerations. Israeli […]
May 11, 2023
A contractor who did not explicitly state a date to which delivery of apartment will be postponed due to requested changes will compensate in case of delay
Real Estate
Dispute Resolution
A contractor delivered an apartment to the purchasers after 3 months of delay and refused to compensate them because they asked to make changes to the apartment. The Court accepted the claim and the contractor was ordered to compensate the purchasers due to the late delivery. Under Israeli law a contractor must compensate if delivery […]
May 4, 2023
Clients are entitled to receive the information collected on them in its entirety
European Law and Regulations
Privacy, GDPR, Confidentiality and protection of reputation
Dispute Resolution
An Austrian company that conducts credit ratings of clients was requested to furnish a copy of the details collected on one of its clients. The company provided the final credit conclusion, but not the copy of the entire set of information. The Court of Justice of the European Union held that the copy of the […]
May 3, 2023
A controlling shareholder is not be liable for company city tax debt if it did not receive assets for no consideration
Taxation and Government Incentives and Funding
Business, Corporate and Joint Ventures
Public Law, Environment and Tenders
A company held property and did not pay city tax to the Tel Aviv municipality. The municipality demanded that the controlling shareholder pay the debt personally. The Court rejected the claim against the shareholder and held that it should not be held accountable for the company’s city tax debt. Under Israeli law a local authority […]
April 27, 2023
Competing with the company is not a breaching conduct if no partnership relations exist or a specific obligation exists
Business, Corporate and Joint Ventures
Dispute Resolution
Parties who ran a business through a company contended that some of the parties breached the partnership relations when they established a competing business. The Court rejected the claim and held that no partnership relations existed between the parties so that there has been no breach of such. Generally, the existence of a company excludes […]
April 27, 2023
EU jurisdiction is applicable in trade agreements in states that are not members of the Union.
European Law and Regulations
A Swiss company that sells second hand tickets for concerts in the EU was fined by the Swiss regulator for non-compliance with EU anti-money laundering offences. The Court of Justice of the EU held that the jurisdiction clause is applicable and the fine should not be cancelled. Switzerland is not a ‘Member State’ of the […]
April 20, 2023
An option agreement between sophisticated parties will be construed by its wording
Business, Corporate and Joint Ventures
Mergers and Acquisitions
Dispute Resolution
A company chairman of the board of directors received options, conditioned on him recruiting a buyer for the company operations. Later, an amendment to the agreement was executed in which the condition was linked only to the new benefits that were granted to him in addition to the first agreement. The Court held that the […]
April 18, 2023
Lack of consideration for change of agreement by behavior enables reversion to the original terms but only as of the date of notice
Commercial, Banking and Financial
Real Estate
Dispute Resolution
A management company that maintains the common areas in a business center in an industrial area in Jerusalem has not demanded management fees for nearly 26 years, despite the existence of a written agreement. The Court held that the management company is not entitled to receive management and maintenance fees for the past period, due […]
April 15, 2023
The right for compensation for data collection in the EU is not dependent on proof of immaterial breach
European Law and Regulations
Privacy, GDPR, Confidentiality and protection of reputation
The Austrian postal services collected information on Austrian citizens and their political affiliation without updating the post users. The Court held that there is a need to compensate for the collection of the information. One may not collect information on EU citizens living outside the EU or EU domiciles without a set GDPR framework. Be […]
April 13, 2023
The definition of the injection of money to company as “shareholders loan” or “investment” is reviewed by the substance and not the wording
Business, Corporate and Joint Ventures
Mergers and Acquisitions
Commercial, Banking and Financial
Two parties founded a company and each invested ILS 500,000 with any future investment agreed to be subject to a dilution mechanism. Once of the founders invested more funds in the company and contended that he gave excessive shareholders loans, which establish a right to indemnity from the other. The Court rejected the claim and […]
April 7, 2023
In a case of oppression and a loss of trust between the parties the injured party may be entitled to termination and damages even if the breaching party amended the breach
Business, Corporate and Joint Ventures
Dispute Resolution
A company founder left the company after the other two founders prevented him from preforming his job as CTO and unduly terminated him from his position as a director. At a later stage, he was offered to return to the company but refused and demanded compensation for his shares. The Court held that, although the […]
March 29, 2023
In consumer agreements international jurisdiction clauses may not be honored by the Court in Israel
International Transactions and Dispute Resolution
Dispute Resolution
Two purchasers bought an asset in the Florida and in the purchase agreement it was set that “the parties agree that the terms of this agreement will be applied and interpreted in accordance with the laws of the United States and that all conflicts and disputes that may arise between them concerning this agreement and […]
March 29, 2023
Maritime insurance coverage applies until the goods reach the final destination stipulated in the bill of lading
Maritime, Aviation and Transportation Law
Dispute Resolution
A food importer imported goods via maritime shipping. In retrospect, it turned out that a chemical process had already begun with the mixture on the ship, even though it was only in the warehouse where the goods were stored after they were unloaded from the ship and before the land shipment began that the chemical […]
March 29, 2023
A promissory note signed against an oral commitment for investment is not enforceable if the investment did not go through
Commercial, Banking and Financial
Dispute Resolution
An investor who invested a total of USD 160,000 in various ventures in Africa demanded that the entrepreneurs sign a loan agreement and promissory notes in the amount of USD 350,000, promising against this to invest one million dollars in their company. The investment did not take place but years later the investor demanded the […]
March 27, 2023
The Police is not authorized to seize third party funds held by a credit clearing company
European Law and Regulations
Commercial, Banking and Financial
Criminal Law
The Israeli Police seized ILS 17,000,000 in temporary forfeiture orders against a money laundering suspect and a company under its control that provided credit card clearing services to businesses. The Police refused to release funds of ILS 130,179 to an innocent business even though the funds were received from legitimate transactions. The Court accepted the […]
March 26, 2023
A lessor may not evict a lessee who cured his breach and paid the rent late but within a reasonable time
Real Estate
Commercial, Banking and Financial
Dispute Resolution
A lessor sought to evict a lessee from a leased property after such did not pay the rent on time according to the lease agreement for an extended period of time. The Court dismissed the eviction claim and held that where a lessee paid the rent, even overdue, there is no place for eviction. A […]
March 21, 2023
A bank that releases funds from an account in breach of a lien order as a result of negligence may pay damages
Commercial, Banking and Financial
Dispute Resolution
A bank released funds in the amount of approximately ILS 1 million from a customer’s bank account despite the existence of a lien order. As a result, the account was emptied of assets and the funds could not be recovered from the account. The Court held that the bank was negligent and responsible for the […]
March 21, 2023
Marriage to an Israeli does not by itself grant right to citizenship but lack thereof does not by itself negate it
Labor Law and Immigration
Dispute Resolution
An unmarried couple that has met in Israel while the woman was in Israeli illegally submitted a motion for a permanent residency for the woman. The Court held that the Ministry of the Interior is to review the truth of the relationship between the couple and only then take a decision. Marriage to an Israeli […]
March 16, 2023
One who initiates a shaming campaign and widespread publication of defamation with intent to cause harm may pay increased damages
Privacy, GDPR, Confidentiality and protection of reputation
Commercial, Banking and Financial
A rabbi who is well-known and respected in the community counseled a woman in divorce proceedings as part of his position. The husband thereof opened a shaming campaign by e-mail messages, distribution of leaflets and documents that were released to hundreds of people. The Court accepted the claim and held that the rabbi would be […]
March 16, 2023
Theft from the employer may justify denial of severance pay
Labor Law and Immigration
Dispute Resolution
A company terminated an employee due to breach of trust and theft from the company and also refused to pay him the severance pay and advance notice fees. The Court held that the employee is not entitled to severance pay and prior notice payments due to the circumstances of the dismissal. An employer may deny […]
March 16, 2023
Termination of an engagement with a party to a contract for its “problematic nature” may be deemed a legitimate reason for its termination
Commercial, Banking and Financial
Dispute Resolution
A company decided not to renew its contract with a distributor in light of the distributor’s problematic conduct which included poor service and unfair treatment of customers and the sale of products outside the distribution zone. The Court held that the contract was duly terminated. Generally, a contract is reviewed according to its wording, when […]
March 16, 2023
Statements according to which a person is a “racist” or a “fascist” shall not necessarily be considered defamation
High-Tech and Technology
Privacy, GDPR, Confidentiality and protection of reputation
Dispute Resolution
During a television broadcast, in response to racist remarks by Amir Hetsroni against the Moroccans in general and against another woman who was present on the show in particular, the woman called Amir Hetsroni a “racist” and a “fascist”. The Court held that under the circumstances the statements do not amount to defamation. Defamation is, […]
March 12, 2023
The tender committee is not allowed to change the terms of the tender retrospectively
Public Law, Environment and Tenders
Dispute Resolution
A bidder was selected as the winner of a tender to perform road marking works, even though it was not registered in the contractors register and with contrary to the terms of the tender. The Court accepted the petition and annuled the decision due to the tender committee’s disregard of the terms of the tender. […]
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