Lawyer Loses Appeal After Claiming No Representation in Decades-Old Property Deal
A Jerusalem property deal from 2003 has concluded over two decades later with a Jerusalem court ordering a lawyer to pay 52,000 shekels to a client he claimed not to represent. Yardenah Peretz and her husband purchased a duplex in 2003, but faced significant delays in registering the property in their name. Peretz sued the lawyer who handled the transaction, David Gdanski, for 232,500 shekels, alleging professional negligence.
Gdanski argued he did not represent Peretz, that she and her husband were unrepresented, that they never paid him, and that his actions were merely "technical." He also claimed the lawsuit was time-barred as the agreement was signed in 2003. However, the Bat Yam Magistrate's Court, presided over by Judge Adi Somech, rejected these arguments.
The court noted Gdanski's continued actions, including filing tax declarations and registering a caution note in 2017, contradicted his claim of ceasing involvement in 2003. Crucially, two conflicting letters written by Gdanski himself were presented: one in 2012 stating he expected to complete the property registration soon, and another in 2013 indicating he was acting for the sellers. Gdanski's explanation for the contradiction was, "Perhaps I am too good a person, Your Honor will hold me accountable for that."
The judge ruled that the statute of limitations did not apply because the limitations period only begins when a trustee denies their duty, which Gdanski's defense filing did for the first time. The court found that even without a full lawyer-client relationship, Gdanski owed a professional duty of care, especially to an unrepresented party relying on his expertise.
However, not all of Peretz's claims were successful. The court dismissed her claim for 72,500 shekels related to an "uplift betterment levy" (mashevech hithabchut), finding the agreement indicated she was responsible for it. Her claim for 80,000 shekels for the inability to sell the property was also dismissed, as she admitted under cross-examination that this amount was also related to the betterment levy.
The court did find Gdanski negligent for transferring the full deposit money to the sellers without obtaining a municipal certificate, contrary to the sales agreement, an action he admitted. Combined with the unexplained delay in registration, this led the court to award Peretz 30,000 shekels for non-pecuniary damages, plus 7,000 shekels in court costs and 15,000 shekels in legal fees, totaling approximately 52,000 shekels.
