Court Orders Contractor and Wife to Pay 650,000 Shekels for Construction Defects in Netanya Apartment
A court in Petah Tikva recently ruled that a contractor, his partner, and his wife must pay approximately 650,000 shekels to the Toktali family for construction defects in an eight-room apartment on Reines Street in Netanya, purchased in 2014. The plaintiffs, represented by attorney Eyal Verdi Galer, claimed severe moisture damage, aluminum defects, and safety hazards including water leakage into electrical systems, which posed fire and electrocution risks. Their repeated complaints to the contractor were allegedly ignored.
The defendants argued that the plaintiffs had illegally divided the apartment into two units and made significant changes to plumbing and electrical systems, causing the defects themselves. They also claimed parts of the lawsuit were time-barred and that they were not given a fair chance to repair the issues. The court appointed an expert who found that most defects, especially the moisture damage affecting the electrical panel, were the contractor’s responsibility, with only minor contribution from the plaintiffs’ alterations.
Significantly, Judge Edna Yosef-Kozin ruled that although the contractor’s wife was listed as the seller in the purchase agreement and the contracting company was not a party, this was an artificial arrangement. The wife was deemed a "seller" under the Israeli Apartment Sales Law due to her active role in the joint venture, making her personally liable alongside her husband and his partner. The court invalidated contractual clauses attempting to shift full responsibility to the company, citing the law’s mandatory protection of buyers.
The defendants were ordered to pay 363,529 shekels for repair costs, 46,320 shekels for relocation expenses, 30,000 shekels for emotional distress, 24,098 shekels for legal fees, and 86,984 shekels for attorney fees. Attorney Verdi Galer stated the ruling is a crucial precedent protecting apartment buyers from contractors evading responsibility through legal technicalities, reinforcing buyer rights against construction defects and seller negligence.
