Is a company owned by businessman Oded Shriki blatantly ignoring the plight of more than a hundred apartment buyers who purchased an apartment from the company in the Mehir Lamishkan project in Bnei Brak?
At least that's what's claimed in a huge lawsuit recently filed against the company by more than a hundred apartment buyers in the complex. The lawsuit, for about 10 million shekels, was filed in the Tel Aviv District Court, alleging a significant delay in the delivery of the apartments in the project.
The apartment buyers are represented by Attorney Emmanuel Yuzuk of the Yuzuk-Malkin Law Firm, who specializes, among other things, in asserting rights in claims for late delivery of apartments.
According to Attorney Yozuk, during 2021, the residents of the project in question won an apartment as part of a price lottery for tenants, in a building that was planned to be built in the Writers' Complex in Bnei Brak. As a result of their win, the winners signed sales agreements with the 'Arazi Negev' company, with the apartment's delivery date set for November 30, 2023.
But despite what was agreed in the contract, there was a significant delay in the delivery of the apartments. Thus, according to the claim, the company was delayed in delivering 49 apartments by an average of seven months, while an additional 52 apartments have not yet been delivered to their owners, and this is to this very day.
According to the lawsuit, despite the significant delay in delivery, the 'Arazi Negev' company did not fulfill its obligations under the sales agreements and did not pay the plaintiffs the compensation due by law.
According to Attorney Yozuk, the Sales Law explicitly states that in the event of a delay in the delivery of an apartment exceeding 60 days from the date specified in the agreement, the purchasers will be entitled to compensation without proof of damage, in the amount of 150% of the monthly rental fees of a similar, new apartment in the same area, for each month or part thereof of the delay, starting from the first day of the delay until the actual delivery date.
According to the plaintiffs, the delay in delivering the apartments caused them significant financial damage. Many of them were forced to simultaneously pay their mortgage payments, which were skyrocketing due to rising interest rates in the economy, and their monthly rent, a fact that put a huge strain on their financial situation.
In addition, it was claimed, the delay caused uncertainty regarding the registration of the apartment buyers' children in educational institutions in the city and serious employment problems, due to the need for many of them to plan their lives in accordance with the relocation of their residence to Bnei Brak, a move that ultimately did not occur on the planned date.
On April 2, 2024, the plaintiffs, through Attorney Yozuk, sent a letter of demand to the 'Arazi Negev' company, demanding compensation to which they are entitled by law. According to Attorney Yozuk, the company did not respond to this letter and did not act to compensate the apartment buyers to this very day.
The lawsuit claims that during the period of delay in delivery, the company refrained from providing the plaintiffs with accurate information about the expected delivery dates, which further increased the uncertainty, making it difficult for many of them to plan their future.
In the lawsuit, Attorney Yozuk notes the Supreme Court's ruling regarding the critical importance of the date of delivery of the apartment for the purchaser. According to this ruling, a delay in the delivery of an apartment may cause the purchaser financial damage and distress due to uncertainty, and it emphasized the vital need to protect apartment purchasers from power imbalances vis-à-vis contracting companies.
In the lawsuit he filed, Attorney Yozuk asks the Tel Aviv District Court to order the 'Arazi Negev' company to compensate the buyers of the apartments in the project in a total amount of 9,937,887 shekels, a non-final amount that must be updated according to the actual delivery date of those apartments that have not yet been delivered to the buyers.
This amount consists of compensation according to the Sales Law for late delivery, interest and linkage on the compensation amounts, reimbursement of expenses for an expert opinion conducted to calculate the appropriate rent, and punitive damages due to the company's conduct and its disregard for the provisions of the law and the sales agreements.
The lawsuit was recently filed with the Tel Aviv District Court.
A defense has not yet been filed.
English 
Hebrew