Contractor Must Pay Over NIS 150,000 for Delayed, Defective Apartment
Translated & summarized from Bizportal by baba
A couple in Elkana will receive over NIS 150,000 from contractor Mosheve for a delayed and defective apartment. The Kfar Saba Magistrate's Court ruled that the contractor failed to prove COVID-19 restrictions caused the four-and-a-half-month delivery delay. The apartment had significant defects, including a blocked safe room door, and the court awarded compensation for repairs, delayed delivery, emotional distress, and legal costs.
The story in 5 lines · by baba
- Mosheve contractor ordered to pay over NIS 150,000 to a couple for a delayed and defective apartment in Elkana.
- Court rejected contractor's COVID-19 delay defense, stating it failed to prove a direct link to project setbacks.
- Apartment had significant defects, including a safe room door blocking the hallway, deemed unfit for habitation.
- Compensation covers repairs, delayed delivery damages, emotional distress, and legal fees.
- Judge Itai Regev stated the COVID-19 crisis is not a 'magic word' for contractors seeking extensions.
A couple who purchased a five-room apartment in Elkana will receive over NIS 150,000 in compensation from the contractor Mosheve, after their apartment was delivered four and a half months late and with significant defects, including water damage, mold, and a safe room door that blocked the hallway. The contractor claimed the delay was due to the COVID-19 pandemic and that the buyers themselves had delayed a payment. However, the Kfar Saba Magistrate's Court rejected most of these arguments.
Judge Itai Regev stated that the phrase 'COVID-19 crisis' is not a magic word and that contractors must prove a direct link between pandemic restrictions and project delays. The apartment was originally scheduled for delivery at the end of April 2020, but was ultimately handed over on November 1, 2020. While the judge accepted the contractor's claim that the buyers delayed a payment, Mosheve's own actions, including inviting the couple to take possession before the payment was made, undermined this defense.
Court-appointed engineer Dan Orman found serious safety defects, including the improperly installed safe room door, which violated regulations. His assessment indicated that the apartment was not fit for habitation in September 2020, as repairs would require vacating the unit for ten days. The court ruled that Mosheve had lost its right to rectify the defects itself due to previous failed attempts and prolonged delays, awarding the couple funds to cover the repair costs.
The compensation includes NIS 94,920 plus VAT for repairs, NIS 24,066 for delayed delivery (calculated based on rental value), NIS 2,000 for temporary housing during repairs, NIS 15,000 for emotional distress, and approximately NIS 27,000 in legal expenses and attorney fees. The court rejected several of the couple's other claims, including those related to their sick daughter and additional damages, due to insufficient evidence or procedural issues.
This ruling is one of several recent cases where contractors have been ordered to pay significant compensation for delays and defects, with the COVID-19 pandemic often cited as a reason for the delays. In this instance, the judge emphasized that the contractor failed to meet the burden of proof required to justify the delay based on the pandemic.
