Homebuyers Awarded Fraction of Claimed Damages for Construction Defects

Three families in Netanya who sued developers for nearly one million shekels over construction defects will receive a total of 65,210 shekels in compensation, plus court costs. The families, who purchased their homes in 2016, claimed significant defects and a resulting decrease in property value, seeking 971,023 shekels collectively. They were represented by attorney Nir Altman.

The developers, represented by attorney Liya Endel, argued that the buyers waited over four years after the homes were delivered in 2016 to file a comprehensive claim, despite earlier, piecemeal complaints. They stated that they were not given an opportunity to perform the requested repairs, as the buyers allegedly prevented them from doing so. The developers also contested the buyers' demand for an additional 30% to cover external contractor costs.

A court-appointed expert's initial assessments were significantly lower than the amounts claimed. For instance, a claim of approximately 296,000 shekels was assessed at around 27,500 shekels. While some repairs were made during the proceedings, the final compensation did not include the requested 30% markup for external contractors.

The final settlement, approved by Judge Liath Har Zion of the Magistrate's Court in Netanya, was reached by agreement of the parties as a compromise, without factual findings. The compensation was divided among the families: 34,775 shekels to one, 19,080 shekels to another, and 11,355 shekels to the third, along with their respective legal costs totaling 27,850 shekels.

Notably, the judgment stipulated that the actual construction contractor and its shareholders would ultimately bear the compensation costs, not the developers. They were also ordered to pay the developers' legal fees, amounting to 146,679 shekels, having not submitted evidence or closing arguments during the trial.