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March 22, 2021
A purchaser who did not complete a purchase transaction but has possession of the apartment may be liable to pay appropriate usage fees
Real Estate
An apartment purchaser did not pay the full consideration and took advantage of the fact that the seller moved to Australia to forge a bill of sale and record a transfer of ownership at the land registry. Only 20 years later, after a legal proceeding determined that the bill of sale was forged but the […]
March 18, 2021
A director who signs a false affidavit of solvency upon voluntary liquidation is personally liable to creditors damaged by it
Maritime, Aviation and Transportation Law
A company marketed a cruise in the Mediterranean, but on the third day of the voyage a hole opened in the belly of the ship, as a result of which the ship was forced to anchor in the port of Rhodes and unload the passengers, who after long hours were returned to Israel by flight. […]
March 16, 2021
A power of attorney lapses upon loss of legal capacity even if made to ensure existence of a company
Inter-generational transfer of a business
A founder and shareholder of a group of companies granted a power of attorney to three of his six children to ensure proper management of the company. Later, the father lost his legal capacity. The Court held that the power of attorney is invalid and expired upon the loss of the father’s legal capacity. Under […]
March 12, 2021
Liens imposed in an execution case will not be considered defamation
Commercial, Banking and Financial
A bank imposed a lien on a former customer as part of collection procedures in which there was a small remaining debt of only ILS 1,500, after 3 years in which the customer did not receive any notice from the bank regarding the existence of the debt in the collection case. The client demanded compensation […]
March 9, 2021
Refusal of a signatory to sign documents thus freezing the company’s activity constitutes oppression
Business, Corporate and Joint Ventures
An Israeli entrepreneur and a South American investor established a company in Uruguay that was held in equal parts among them for the development and commercialization of a patent in the field of security cameras and even obtained a distributor for the sale of the cameras. According to the shareholders’ agreement, the investor was appointed […]
March 4, 2021
A volunteer may receive compensation for her work, but employing an employee under the guise of a volunteer is illegal
Labor Law and Immigration
A woman who held a position in an educational organization contended that she was due payment of social benefits by virtue of an employer-employee relationship, after the organization contended that she was not entitled to such rights because she was a volunteer and not an employee of the organization. The Labor Court held that there […]
March 4, 2021
A lessee may terminate a lease agreement if a hidden defect, that was not disclose to him, was discovered and it interferes the use
Real Estate
A lessee terminated a lease agreement after discovering that there was an unusual and prolonged radiation problem in the apartment that was known to the lessors and was not disclosed to him. The Court accepted the lessee’s claim and held that it was entitled to terminate the agreement as it is the responsibility of a […]
March 3, 2021
When addressing a commercial agreement executed between two “returning players” its wording will trump
Commercial, Banking and Financial
Tabula Com. Ltd. and Walla! Communications Ltd. entered into a cooperation agreement, which stipulated that Walla! may terminate the agreement at any time and for any reason, subject to the payment of liquidated damages. Due to loss of trust between the parties, Walla! unilaterally terminated the agreement. The Court held that the agreement was duly […]
March 3, 2021
An editor of a Facebook page is not necessarily liable for offensive comments that were posted to the page
High-Tech and Technology
The chairman of the Maccabi Sha’arim Football Association contended that the editors of the association’s Facebook page are liable to him because they did not prevent the posting of defamatory comments about him on the Facebook page, even if such were later removed. The Court held that the editors are not liable for defamation because […]
March 1, 2021
When a company manager uses his private Gmail account to manage a company he exposes it for review
High-Tech and Technology
Liquidators of Australian companies in liquidation proceedings in the Courts in Australia requested to review the Gmail mailboxes of the manager of the companies, who live in Israel, when it is not disputed that the companies in liquidation did not have their own mailboxes and the manager uses his own private accounts to send and […]
February 16, 2021
One can not restrict occupation of an employee who breached fiduciary duties under a previous employment term employment term
Maritime, Aviation and Transportation Law
A company that provides services to yacht owners has discovered that a former employee, who was employed as a skipper, started providing a private service to one of the company’s customers despite an explicit ban on doing so. The company sought to prevent him from providing service to all of the company’s customers for a […]
February 15, 2021
When after contentions of breach complete severance between the parties occurred for years the agreement is deemed terminated
Commercial, Banking and Financial
Apartment owners discovered that an developer with whom they previously contracted to carry out a TAMA 38 project had recorded cautionary notes on their rights after no formal termination notice was given by the them, even though for three years there was complete disengagement and the tenants had already contracted with another developer. The Court […]
February 11, 2021
A distributor does not acquire rights in a trademark merely by investment in the brand or creation of brand reputation in the territory
Copyright, Media and Artists
A distributor of the Berkline furniture line in Israel has registered a trademark in its name pertaining to the products distributed. After the product manufacturer and brand owner overseas was acquired by a third party, the third party filed a motion to strike out the registered trademark. The Trademark Registrar held that the mark was […]
February 10, 2021
An employee of a company who also serves as its director is not entitled to overtime pay
Labor Law and Immigration
A shareholder and director in a company was employed as the manager of a store owned by the company. As part of his work as the store manager, the employee also kept attendance records for the other employees but lacked to do so for himself. Following a dispute between the shareholders and revelations regarding a […]
February 10, 2021
When employing minors employers have a strict duty to take reasonable measures to protect the employee from harm
Labor Law and Immigration
A minor, employed at a store, was injured when asked to remove and throw a large glass sheet which broke and caused a serious injury to his leg that led to a disability that remained with the minor throughout his life. The Court held that an employer has a duty to protect the employee from […]
February 10, 2021
A prenuptial agreement cannot be revoked or changed in conduct but only by way of a new prenuptial agreement to be approved in Court
Notarial Prenups
Prior to the wedding, a couple signed a prenuptial agreement, according to which the man has no rights in the house purchased by the woman. When the marriage collapsed the woman demanded to evict the man from the house but he contended that it was a draconian prenuptial agreement made for appearance only when he […]
February 7, 2021
A person signing an agreement on behalf of a company without a stamp does not create a personal liability for the company’s obligations under the agreement
Business, Corporate and Joint Ventures
A landlord of a company demanded the payment of the rent both from the company, which went bankrupt, and from the shareholder in it, including because he signed the lease agreement himself and without the company’s stamp. The Court dismissed the lawsuit against the shareholder. The mere fact that the shareholder signed the agreement without […]
February 3, 2021
Enforcement of an agreement may not be made in a manner other than the objective interpretation of the signed document
Real Estate
A memorandum of understanding was signed between a purchaser and a seller in which it was recorded that a “3-room apartment” was purchased, while at that stage the “apartment” actually comprised two shops and a storage that still needed to be changed in the Land Registry to one residential unit. The seller did not disclose […]
February 3, 2021
An Israeli Court will not honor a foreign Court disclosure order unless under Israeli law such order could have been granted
International Transactions and Dispute Resolution
A Canadian company was sued in Ontario, Canada, for CAD 450 million and filed a counterclaim of CAD 550 million against ten entities, including an Israeli company engaged in providing business and industrial intelligence services, for which it was alleged that it was involved in business espionage. After the Israeli company entered liquidation, the Canadian […]
February 3, 2021
A controlling shareholder conflict of interest transaction will not be canceled if a long time has elapsed
Business, Corporate and Joint Ventures
A controlling shareholder in a company entered into a combined transaction affected by a conflict of interest for the allotment of private shares and the sale of the shares, for the purpose of creating a controlling stake. The transaction took place about 6 years ago, using insiders information about negotiations he conducted in his capacity […]
January 31, 2021
A contract that repeats a previous contract and may stand by itself may be deemed replacing the previous contract and not an addendum
Commercial, Banking and Financial
A couple bought from a contractor an apartment that had not yet been built as part of the TAMA 38 project and was to be delivered after a year. After three months, a new contract was executed regarding the purchase and the new contract stipulated that it replaces the previous one. A third contract was […]
January 29, 2021
A recipient may be obligated to click an unsecure URL link in order to cease the receipt of advertisements
Commercial, Banking and Financial
A recipient who signed up for a laser hair removal company’s mailing list contended that he could not remove himself from the list, as in order to do so, he was obligated to click an unsecure URL link, which could have caused leakage of personal data. The Court held that an advertisement that allows removal […]
January 28, 2021
One cannot build a website to seem like a website of a competitor and so that a Google search will reach it instead of the website of the competitor
Commercial, Banking and Financial
The owner of an online pet supply business wrote on his website the name of another pet supply store and thus, a search on the GOOGLE search engine of the other pet store name would redirect the traffic to his website. The Court held that the use of the competitor’s details on the website constitutes […]
January 26, 2021
Employing of employees without adhering to the law does not, by itself, justify piercing the corporate veil
Labor Law and Immigration
A foreign worker was employed by a company that did not pay him his full benefits, and sought, after the company has declared liquidation, to personally obligate one of the company’s shareholders, who paid the employee’s salaries and was responsible for the company’s funds and wages, to personally pay him the amounts due. The Court […]
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