Billionaire Dispute Nears 16-Year Mark Amid Arbitrator Resignation
Translated & summarized from Globes by baba
A nearly 16-year-old billionaire dispute between Dan Gertler and the Gertner brothers is stalled after arbitrator Eitan Ornstein resigned, leaving key financial issues unresolved. Ornstein's April award ordered Gertler to pay $85 million plus interest, now totaling around $300 million. Gertler had sought Ornstein's disqualification, citing bias. Ornstein's resignation occurred as police concluded an investigation into him and Afi Noeh regarding judicial appointments.
The story in 6 lines · by baba
- Arbitrator Eitan Ornstein resigned from a 16-year billionaire dispute between Dan Gertler and the Gertner brothers.
- Ornstein's award ordered Gertler to pay $85 million plus interest, now totaling approximately $300 million.
- Gertler had repeatedly sought Ornstein's disqualification, alleging bias related to media reports.
- Ornstein's resignation coincided with the conclusion of a police investigation into him and Afi Noeh.
- The original dispute concerns $600 million transferred in 2006 for an African copper mine partnership.
- The previous arbitrator, Uri Goren, also resigned in 2020 after being investigated by a private detective.
A nearly 16-year-old billionaire dispute between Dan Gertler and the Gertner brothers, Moshe and Mendi, remains unresolved following the surprise resignation of arbitrator Eitan Ornstein last week. Ornstein, a retired judge, had been appointed after the previous arbitrator, Uri Goren, also resigned. Ornstein's resignation leaves several issues pending, including how to allocate financial responsibility among Gertler's companies for the remaining obligations and the status of certain documents.
Ornstein's arbitration award in April 2024 had ordered Gertler to pay the Gertner brothers $85 million plus accumulated interest since 2006, a sum now estimated at around $300 million. While Ornstein ruled on the vast majority of disputes, he stated in his decision to recuse himself that completing the award would not require extensive deliberation, estimating another arbitrator could finalize it quickly.
The original dispute, which began in 2011, centers on approximately $600 million transferred from the Gertner brothers to Gertler for a partnership in African copper mines. The brothers alleged damages and fraud. Gertler had repeatedly sought to disqualify Ornstein, particularly after the award was issued, accusing him of bias related to media reports about discussions with private investigator Tzvika Noeh.
Ornstein's resignation coincided with the police announcing the conclusion of an investigation into Afi Noeh, former head of the Israel Bar Association, and Ornstein himself, concerning Ornstein's 2016 appointment as president of the Tel Aviv District Court. Police suspect a quid pro quo arrangement, though Ornstein denies any wrongdoing and believes the case against him will be dismissed.
Despite these investigations and past disqualification attempts, Ornstein has continued to serve as an arbitrator in other cases, with parties often agreeing to his involvement. His recusal in the Gertler case is not linked to the investigation, and he has previously stated his confidence in his professional integrity, citing his "innovative and brave rulings" as a judge and arbitrator.