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 damage caused as a result of the release of the seized funds and it must pay damages. The tort of negligence occurs when there is a duty of care on the part of the tortfeasor towards the harmed party and this duty was breached by the tortfeasor by deviating from the accepted standard of behavior and as a result damage was caused. There is no automatic "expiration" of a lien order. As long as no notification is given regarding the cancellation of the lien - the lien remains in effect and the holding party is subject to it. Here, the bank received the lien order, but did not act on it, for a reason that is not clear whether due to a mere error or whether as a result of deception on the part of the client based on statement that the divorce case was 'closed'. As the client emptied the account and the funds could not be recovered within the framework of the divorce dispute in which it was involved, a causal link was established between the bank's default and the damage caused to the client's ex-wife and therefore the bank must pay all the funds according to their real value with interest and linkage.