Stone and Lime Industry Drops $24 Million Lawsuit Against Israel Land Authority
Translated & summarized from Bizportal by baba
The company "Stone and Lime Industries" has dropped a 98 million shekel lawsuit against the Israel Land Authority (ILA) concerning alleged overcharges for quarry use two decades ago, following a Supreme Court settlement. The company had claimed the ILA collected excessive royalties between 2001 and 2005. The settlement resolves disputes over several quarries, with specific arrangements for their continued operation and royalty payments. The Supreme Court approved the agreement, effectively canceling the District Court's previous ruling on the matter.
The story in 5 lines · by baba
- Stone and Lime Industries dropped its 98 million shekel lawsuit against the Israel Land Authority.
- The lawsuit concerned alleged overcharges for quarry use from 2001-2005.
- A settlement agreement was reached and approved by the Supreme Court.
- The District Court had previously ruled the claim was time-barred.
- The settlement includes new arrangements for several of the company's quarries.
The Israeli company "Stone and Lime Industries" (Taseit) has withdrawn its lawsuit against the Israel Land Authority (ILA), in which it claimed the ILA had overcharged it by 98 million shekels (approximately $24 million) for the use of quarries two decades ago. This withdrawal follows a settlement agreement that received the force of a court ruling from the Supreme Court.
Stone and Lime Industries, controlled by Radmix, operates nine quarries and plants producing raw materials for the construction sector, including aggregates, concrete blocks, and lime, making it the largest company of its kind in Israel. In 2017, the company demanded the ILA refund 98 million shekels, alleging overpayment of quarrying royalties between 2001 and 2005. The Tel Aviv District Court had previously ruled that the claim was time-barred, but left open the possibility of a set-off against current royalties.
Both parties appealed to the Supreme Court. Stone and Lime Industries argued that the ILA had collected more than double the rightful royalties, even as market prices fell due to intense competition. The company contended that the District Court erred in dismissing its claim as time-barred, failing to consider claims arising from 2015-2017 and evidence of the ILA's awareness of the overcharging in 2015.
The ILA, in turn, appealed the ruling on future set-offs, calling it an "indirect circumvention of the law regarding statutes of limitations and set-off provisions, involving bad faith and delay." The ILA asserted the claim was baseless, an attempt by a large company to unlawfully take public funds long after the statute of limitations expired, with significant delay and bad faith.
Last week, the two sides informed the Supreme Court of their settlement. Under the agreement, Stone and Lime Industries will drop its appeal, the ILA's appeal will be accepted, and the District Court's ruling will be canceled, except for the statute of limitations aspect. The settlement includes various arrangements for several of Stone and Lime Industries' quarries, though specific payment amounts were not disclosed. These include agreements on the Kadrim A and B quarries in the Upper Galilee, the Golani quarry, and the concrete and logistics plant at Golani, with provisions for royalty payments, continued operation, and the transfer of remaining materials to the ILA. The Supreme Court justices Daphna Barak-Erez, Khaled Kabub, and Ruth Ronen approved the agreement.