A plan for the development of an area near Carmiel was published and included pavement of a road. The road was planned to pass through some land plots and therefore partial expropriation of such plots was required.
The Supreme Court held that under the Planning and Building Law, expropriation of up to 40% of the land does not entitle compensation. However, compensation will be paid when a partial expropriation does not improve the remainder of the land and leads to depreciation of its value. In such a case, the Minister of the Interior is to be requested to order compensation and the Minister's determination will be subject to the principles of reasonableness and proportionality. The land owners are to contact the Minister of the Interior to determine the amount of compensation to which they are entitled.