Court Orders Client to Pay $8,200 for Medical Rights Firm's Services
An Israeli man who received a 91% disability rating and income tax exemption after using a medical rights firm must pay the company $8,200 in fees, a court has ruled. The client had initially paid $1,400 to Orpaz Medical Rights Realization for services related to the National Insurance Institute and Tax Authority. During the process, he provided the firm with his National Insurance Institute website password.
After securing the tax exemption, the client refused to pay the agreed-upon success fee of $8,200, leading Orpaz to initiate enforcement proceedings. The client claimed his signature on the power of attorney and payment commitment was forged, and that he had provided all necessary information himself. He argued that since he hadn't paid any part of the success fee, the contract was invalid.
Senior Registrar Helena Boruchovitz Litvin dismissed the forgery claim, noting the client failed to bring a handwriting expert to prove his case. The firm's representative testified that the client signed on a tablet at his home, and a copy of the power of attorney was sent to his phone. The court found it clear that the firm had provided the services it promised, including gathering medical information, explaining the process, and submitting documents to the authorities.
The court emphasized that a client cannot cancel a contract simply because the outcome is less beneficial than expected. The client had expected to receive monetary compensation for his conditions, rather than a tax exemption, which he claimed he couldn't utilize due to his inability to work. The registrar stated this was merely a "mistake in the profitability of the transaction" and not grounds for voiding the agreement.
The ruling ordered the client to pay the $8,200 success fee, plus $200 in legal expenses and $1,600 for the company's attorney fees. The decision was made on August 27, 2026.