Jerusalem Court Orders Developer to Pay $360,000 for Unfixed Construction Defects
The Jerusalem District Court has ordered a construction company to pay NIS 1.26 million (approximately $360,000) to apartment buyers due to unrepaired construction defects. The ruling came after 55 apartment owners in a 16-story building in the "Savyonei Ramat Sharet" project on Kadish Luz Street in Jerusalem sued the developer, P.A. Development and Construction in Jerusalem, for NIS 2.5 million. They cited numerous defects that had persisted for six years after the building was delivered in 2019.
Residents complained of issues including foul odors from the garbage chute, a malfunctioning elevator, and flooding in the building's parking garage. They claimed the defects remained and worsened, and that previous repair attempts were unprofessional, exacerbating the damage. The buyers lost faith in the company and sought to have it stripped of its right to make repairs. The lawsuit's valuation included repair costs, decreased property value, and non-pecuniary damages, based on an expert opinion estimating repair costs at NIS 7 million.
The developer argued the claim was inflated and that court-appointed experts assessed standard defects costing only hundreds of thousands of shekels. They asserted they never denied responsibility but were prevented from making repairs by the residents, who systematically obstructed their work. The company requested to retain its right to repair and for a 30% reduction in compensation, representing the cost of hiring an external contractor.
Judge Arnon Darel partially accepted the claim, ordering the company to pay for defects, a minor decrease in value of NIS 8,000 per apartment, and NIS 2,000 for non-pecuniary damages per unit. The court found no significant, irreparable damage to the building's reputation. While the judge noted the plaintiffs contributed to the delay by setting preconditions for repairs, such as demanding a schedule and preventing uncoordinated workers, he ultimately ruled the company forfeited its right to repair.
The court cited urgent safety issues, including fire system malfunctions, severe flooding, garbage chute stench, and leaks, which demanded immediate attention and received inadequate responses for months. The judge determined the developer exhibited "persistent failure to perform repairs in a timely manner, even if the plaintiffs contributed to it." The loss of trust, culminating in police being called to a repair incident, was a key factor. The court concluded that allowing the company to perform repairs would likely lead to further disputes and perpetuate the strained relationship.
