A chain of coffee shops was required to vacate the premises it leases at gas stations on Route 6 after 18 years only because the lease agreement stipulated that it can be terminated upon notice "for any reason".
The Court rejected the eviction claim as the eviction notice was made in distinct bad faith. In general, the wording of an agreement has a significant and decisive weight. However, even if the agreement allows termination for any reason, it must be carry out in an accepted manner and in good faith. This rule applies especially when one party is a dual-essence entity that provides a public service (alongside an activity of a private nature), which is subject to increased obligations of good faith. Here, a well-coordinated secret move took place between Derech Eretz, which serves as an hybrid public/private entity and the long arm of the State of Israel in the operation of Route 6, and Dor Alon, which leases the gas stations which initiated the move to overtake the property without having to share the profits with another partner. Therefore, even if there was a right to terminate the agreement for “any reason” whatsoever it was exercised in bad faith and is therefore invalid.