Ex-MK Yitzman Shiri Ordered to Pay $27,000 for Bad Faith Lawsuit

Former Knesset Member Yitzman Shiri has been ordered to pay 100,000 shekels (approximately $27,000) in legal costs to the Israel Land Authority (ILA) after his lawsuit was dismissed. The lawsuit, filed by his company "Munitin for the Advancement of Industry," sought the return of "excess use fees" charged by the ILA. The Beersheba District Court, presided over by Judge Amit Cohen, ruled that Shiri's company acted in bad faith.

Munitin leased a plot in the Beer Sheva industrial zone in the 1970s under an agreement restricting its use to "industrial and craft structures for rent and/or lease." The company built the required structures and, since 2005, has been leasing the plot for the display and sale of cars for the "Shlomo Sixt" rental company. Shiri acquired Munitin in 1999, meaning the entire period of alleged "excess use" occurred under his ownership. Munitin paid 3.5 million shekels for the years 2012-2019 and 5.2 million shekels in lease fees due to the change in use.

Shiri and Munitin argued that the ILA's failure to finalize a lease agreement for over 50 years caused significant damages, and that the ILA's actions created difficulties. They claimed the ILA improperly collected fees in 2019 for excess use, asserting that displaying and selling cars was a permitted use. However, Judge Cohen found the original development agreement's language to be clear and unambiguous regarding permitted uses, stating that the purpose was the construction of industrial and craft buildings, not commercial car sales.

Cohen emphasized that Munitin knew it was not permitted to use the plot commercially. He stated the ILA is entitled to restrict land use according to plans and agreements, and that the plot was allocated to Munitin without a tender specifically for industrial and craft structures. The court found Munitin's attempt to reinterpret the agreement after more than 50 years, contrary to its explicit terms and the purpose of the allocation, to be a display of bad faith. The judge noted that Munitin had violated the agreement for years and benefited from the ILA's inaction in collecting fees for the excess use.

The court concluded that Munitin's actions were in bad faith, as the company violated its obligations for many years and used the plot for an unauthorized purpose. Munitin then filed the current lawsuit demanding a refund for fees it claimed were collected unjustly, while attempting to misinterpret the agreement. Shiri was represented by attorney Shi Zichlinsky, and the ILA by attorney Itai Barel.