Brothers Must Pay Half of Receiver Fees in Family Property Dispute

A judge at the Tel Aviv Family Court has ruled that two brothers must pay half of the 6.8 million shekel (plus VAT) receiver fees in a dispute over the sale of ten jointly owned properties valued at approximately half a billion shekels. The brothers had initially sought to reclaim 80,000 shekels, representing their share of a reduction in the receivers' fees. However, they later argued that their two sisters should bear the entire cost of the fees, claiming the receivers' work primarily benefited the sisters who sold their shares at a high price.

Judge Tomer Shalom rejected the brothers' claim, stating their initial request for a refund implicitly acknowledged their obligation to pay the fees. The court appointed receivers to sell the properties and dissolve the partnership after the four siblings could not agree. The brothers ultimately purchased the sisters' shares in the properties for 501,026,000 shekels, with the sale agreements approved for February 2025.

The brothers argued that the receiver fees were a success bonus and that since the sisters profited from the high sale price, they should cover the costs. They also contended that after the auction, the receivers worked solely for the sisters. One sister countered that the fees were calculated based on the total property value, which the brothers had agreed to, and that their purchase of her and her sister's shares did not negate their ownership obligations.

The receivers, Lior Mazor and Inbal Beit Lachmi, argued they worked for all parties, noting that if the brothers hadn't bought the shares, they could have sold them to an external buyer for tens of millions above the appraised value. The judge noted that the brothers had not raised their current arguments earlier in the proceedings, despite the case being open since March 2023 with numerous motions and decisions.

Judge Shalom ruled that the brothers' request for half the fee reduction was an admission of owing half the fees. He dismissed their argument that as buyers they were a third party, stating it ignored the nature of the receivership process. The judge also relied on a district court ruling that stated a party paying receivers' fees should not be determined by who won an auction, as it is unreasonable and violates equality. The brothers' offer was significantly higher than competing bids, but the judge stated this was irrelevant to the fee payment obligation. The brothers will pay approximately 3.4 million shekels plus VAT, along with 10,000 shekels in expenses to one sister and 10,000 shekels to the receivers.