Ashdod Urban Renewal Project Dispute Leads to Court Ruling
A legal battle stemming from an urban renewal project in Ashdod has resulted in a court ordering two contractors to pay a project organizer nearly 800,000 shekels in total. Madonna Dor, operating as "Ofek M.D.," specialized in organizing residents for Tama 38 projects, a type of urban renewal. In 2016, she entered into agreements for a project on Hartzit Street in Ashdod. One agreement was with "Ashdod Metarchiv" (Ashdod Expands), represented by Meir Zubeib, for future collaborations. The second, an entrepreneurship agreement, was with contractors Mahran Amro and Yosef Ouchayoun, who were to execute the Hartzit Street project. Under this agreement, the contractors were obligated to pay Dor and Ashdod Metarchiv a commission of 850,000 shekels plus VAT.
Problems arose in 2023 when the building permit was issued, and Dor discovered she had not received any payment. She accused Zubeib and Amro of attempting to defraud her, proceeding with the project themselves, and withholding her commission. The case reached the District Court, where the judge expressed skepticism about the credibility of all parties involved, stating none told the whole truth. The judge noted Dor denied documents she herself prepared, Zubeib gave evasive answers, and Amro failed to explain payments to a party he claimed did no work.
The court found that Dor had not fulfilled her contractual obligation to secure agreements from all building residents, only about 67%. However, the judge also determined that Amro had waived this claim by his actions. He continued the project for years without issuing a formal cancellation notice or demanding repayment of funds he had already paid. Amro's explanation for not seeking repayment was that he was "busy with work," which the judge dismissed as insufficient reason to forgo 175,500 shekels.
A pivotal moment in the trial came from an earlier affidavit by Zubeib, where he stated Ashdod Metarchiv had paid Dor in full via a partner named Yuval Edri. Confronted with this in court, Zubeib changed his story, claiming it was a mere calculation contingent on the project's success and that no money was actually transferred. The judge found this drastic change in testimony untruthful. Furthermore, Zubeib provided no proof of payment to Edri, and Edri testified he received nothing. The court also noted that Zubeib and Amro were represented by the same law firm, strengthening the conclusion that they acted together to dispossess Dor of her rights.
Ultimately, the court ordered Zubeib to personally pay Dor 425,000 shekels plus VAT, representing half the full commission based on his own admission of receiving the entire sum. Amro was ordered to pay 375,000 shekels plus VAT, after deductions for estimated costs of obtaining the building permit. Dor's request for an additional 200,000 shekels in liquidated damages was denied because she also failed to meet her contractual obligations. Zubeib and Amro were also jointly ordered to pay 30,000 shekels for court costs and legal fees.
