Landowners Seek to Overturn $15 Million Arbitration Award Amid Conflict of Interest Claims

The brothers Svirsky, owners of land in Tel Aviv's Florentin neighborhood, have petitioned the Tel Aviv District Court to overturn an arbitration ruling that ordered them to pay 55 million shekels to the real estate development company Boulevard Terra. The ruling, issued in April 2026 by arbitrator Eitan Orenstein, former President of the Tel Aviv District Court, concerns a failed construction project. The Svirsky brothers claim Orenstein had a connection that was not disclosed to them during the arbitration. The Svirsky brothers argue that Orenstein and Boulevard Terra should have disclosed this relationship, or that Orenstein should have inquired about his lawyer's family members involved in law. Industry sources note that arbitration proceedings are confidential, limiting Orenstein's ability to investigate such connections. Legal experts believe the petition has a low chance of success, as courts are reluctant to intervene in arbitration awards, especially when the alleged connection is distant. They assert that the firm did not represent Boulevard Terra in the arbitration itself and that any claim of a conflict of interest due to the brothers' relationship is baseless. The Svirsky brothers also cite legal and logical difficulties in the arbitration award, which led them to hire Proxima-X, an intelligence and strategy firm, to uncover the alleged connection. They contend that they do not need to prove improper motive or conscious influence on the arbitrator, but rather that an "objective and real concern of bias" exists due to the alleged ties. The dispute originated from a 2013 agreement for a residential project on the Svirsky land, intended to build 188 apartments. The project failed to obtain a building permit for five years, leading to the cancellation of sales agreements with buyers and subsequent legal battles. The arbitration began in 2022, with the Svirsky brothers eventually being assigned 55% of the damages, based on the arbitrator's finding that their failure to sign bank financing documents contributed to the project's collapse. The Svirsky brothers had previously filed a separate motion to disqualify the arbitration award in April 2026, citing judicial estoppel, with a hearing expected this week.