Hamburger Evron & Co.

The loss of profit was due to a delay in the construction of a project. The judgment determines that it is not enough that a company that objected to the construction of a real estate project with its partner land owners was forced to sell its share, it is also required to pay damages due to the delay it caused in the implementation of the project.

Leasing company Cal Auto was charged with paying damages to construction company Morris Agababa, in the sum of NIS 620,000 due to losses caused as a result of a delay in the construction of a commercial project, close to the Nokia Arena in Tel Aviv.

The affair began in 2009 when the Agababa company conducted negotiations to acquire a 674 m2 plot of land at 52 Anilevich Street, on which it planned to build a commercial project. The negotiations were conducted with seven companies which held rights to the land, including Cal Auto which held 20% of the land, and was the only party that objected to the sale.

Agababa filed a complaint against Cal Auto in which the Court ruled that Cal Auto's refusal to sign the sale agreement was made in bad faith and in opposition to the provisions of the property co-ownership agreement signed by Cal Auto together with the other partners in the land – an agreement whereby a 60% majority of the partnership was sufficient to sell the land.

Cal Auto appealed the judgment before the Supreme Court and filed motions for stay of execution, but the appeal and motions it filed were ultimately denied and Cal Auto was forced to sell its share of the land.

After the judgment requiring Cal Auto to sign the sale agreement was issued, Agababa, through attorneys Menachem Abramovich and Jonathan Dori of law firm Hamburger Evron & Co, filed a complaint with the Tel Aviv District Court for the financial damage it suffered due to the delay in the construction of the project, as well as loss of rent profit.

Tel Aviv District Court Justice Yehoshua Gaifman, ruled that Cal Auto had made every effort to thwart the deal between Agababa and the other land owners. The Court estimated the damage caused to Agababa in the amount of over NIS 1,500,000, but awarded it damages of NIS 620,000. In addition, Cal Auto was charged NIS 50,000 in trial costs.

Agababa was represented by attorneys Menachem Abramovich and Jonathan Dori of Hamburger Evron & Co. Cal Auto was represented by attorneys Rami Landa and Yaniv Goldberg of Meitar Liquornik Geva Leshem Tal & Co.