Contractors Ordered to Pay $110,000 After Court Finds They Defrauded Partner
A municipal court in Ashdod has ordered two contractors, Meir Zeviv and Mahran Amro, to pay a total of approximately 800,000 shekels (about $220,000) plus VAT to a former partner, Madonna Dor, in a urban renewal project dispute. Dor, who operated under the business name "Ofek M.D.," specialized in organizing residents for Tama 38 projects, a type of urban renewal in Israel. In 2016, she entered into agreements for a project on Harzitz Street in Ashdod. One agreement was with "Ashdod Metarchiv" for future collaborations, and another, an entrepreneurship agreement, was with contractors Amro and Yosef Ohayon. The contractors were 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 commission. She accused Zeviv and Amro of attempting to defraud her and continuing the project without paying her. The court, however, found credibility issues with all parties involved. The judge noted Dor denied documents she herself prepared, Zeviv gave evasive answers, and Amro failed to explain payments to a party he claimed did no work. The court determined Dor had only secured about 67% of resident agreements, not the full commitment required by the contract.
Despite Dor's contractual shortcomings, the judge found that Amro's actions indicated he waived this objection. He continued the project for years without issuing a formal cancellation notice or demanding repayment of funds. When questioned about not seeking repayment, Amro cited being "busy with work," a reason the judge dismissed as insufficient for forfeiting 175,500 shekels.
A key turning point in the case was an earlier affidavit by Zeviv, stating that Ashdod Metarchiv had paid Dor in full through an associate named Yuval Edri. However, during cross-examination, Zeviv changed his story, claiming it was merely a calculation for a project that never materialized and no funds were transferred. The judge found this drastic change in testimony untruthful. Furthermore, Zeviv provided no proof of payment to Edri, and Edri testified he received nothing. The court also noted that Zeviv and Amro were represented by the same law firm, strengthening the conclusion that they colluded to dispossess Dor of her rights.
Ultimately, Zeviv was personally ordered to pay Dor 425,000 shekels plus VAT, representing half the full commission based on his claim of having received the entire amount. Amro was ordered to pay 375,000 shekels plus VAT, after deductions for estimated permit acquisition costs. Dor's request for an additional 200,000 shekels in liquidated damages was denied due to her own failure to meet contractual obligations. Zeviv and Amro will also jointly pay 30,000 shekels in court costs and legal fees.
