Israeli Courts Reject, Partially Approve, and Approve Class Action Lawsuits
Translated & summarized from Bizportal by baba
An Israeli labor court canceled a class action lawsuit against Turkish construction firm Yilmazlar International, allowing it to proceed only on one claim regarding night shifts. Separately, a class action against the Zichron Yaakov council over property taxes for pools was dismissed. A class action against credit firm Obligo was partially approved regarding high interest rates, and a settlement was approved for a class action against Petah Tikva municipality over unsolicited text message advertisements.
The story in 6 lines · by baba
- National Labor Court canceled class action against Yilmazlar International, allowing only night shift claim.
- Haifa District Court dismissed class action against Zichron Yaakov council over pool property taxes.
- Central District Court partially approved class action against Obligo over high mortgage interest rates.
- Magistrate's Court approved settlement for class action against Petah Tikva over unsolicited ads.
- Yilmazlar International employs thousands of foreign construction workers in Israel.
- The Zichron Yaakov case involved alleged illegal property tax collection for private pools.
The National Labor Court overturned a lower court's approval of a class action lawsuit filed by the "Koach LaOvdim" organization against the Turkish construction company Yilmazlar International. The court ruled that the organization failed to prove it attempted to find a direct claimant and that the lawsuit could only proceed on one of the three original claims: alleged improper night shift work. The court found no grounds for claims regarding overtime pay or faulty payslips. The company, which employs thousands of foreign construction workers in Israel, had appealed the Haifa District Court's decision to allow the suit.
Separately, the Haifa District Court dismissed a class action lawsuit against the Zichron Yaakov Local Council. The plaintiff, Yuval Cohen, sought to sue over alleged illegal property tax collection for private swimming pools. The court ruled that Cohen had not exhausted his personal appeal options and had not paid the tax himself, thus lacking a personal cause of action. The court stated that tax-related class actions are not typically permitted and that this case was not an exception. Cohen was ordered to pay 12,000 shekels in legal costs.
In another development, the Central District Court partially approved a class action lawsuit against the non-bank credit company Obligo Advance Finance. Plaintiffs Shmuel and Sarah Grunfeld alleged that Obligo charged them an annual interest rate of 14.5% and a default interest rate of 17% on a mortgage, exceeding legal limits. The court found that Obligo, not being a bank, is not bound by banking interest rate restrictions but may have violated the Fair Credit Law regarding interest rates, disclosure, and excessive collection. The court allowed the Grunfelds to represent the class despite some questions about their standing and ordered Obligo to pay 20,000 shekels in costs.
Finally, the Rishon LeZion Magistrate's Court approved a settlement in a class action against the Petah Tikva Municipality. The suit alleged the municipality sent advertisements to mobile phones without consent. The settlement, valued at less than 100,000 shekels, involves the municipality providing 81,000 shekels in coupons for cultural events and revising its procedures to ensure consent and include opt-out mechanisms. The plaintiffs' reward was set at 4,000 shekels, and their attorney's fees at 12,000 shekels.
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