Tel Aviv Court Rejects Contractor’s 700,000 Shekel Claim Against Isrotel Hotel, Orders 100,000 Shekel Payment

A Tel Aviv Magistrate’s Court has fully dismissed a lawsuit filed by a waterproofing contractor against the Isrotel hotel chain, owner of Mitzpe Hayamim Hotel in Rosh Pina. The contractor sought 707,707 shekels for waterproofing work performed at the hotel but was instead ordered to pay 100,000 shekels in legal fees and expenses. Judge Adi Hadar ruled in favor of Isrotel, upholding the hotel’s appointed supervisor’s final and binding decision as stipulated in the contract.

The dispute originated from an October 2018 agreement in which Isrotel agreed to pay the contractor 1.6 million shekels plus VAT for waterproofing services. The contractor claimed full completion of the work and demanded additional payments for extra tasks, compensation for canceled work, travel expenses, and damages. However, the contract included a clause granting the hotel’s supervisor the exclusive authority to resolve disputes, with decisions deemed final and unappealable.

To assess the case, the court appointed expert engineer Uri Inbal, who delivered a critical report against the contractor, stating the materials used were unsuitable and would cause leaks within five years. The expert also rejected the contractor’s claim that the hotel’s decision not to waterproof certain areas affected his work. Furthermore, the court found the contractor lacked the proper licensing required for the job, contradicting contract assertions.

Judge Hadar emphasized that the contractor’s lawsuit was an attempt to circumvent the contractual dispute resolution mechanism and reopen settled matters. The court noted this was not the contractor’s first failed attempt to challenge supervisors’ decisions. The lengthy legal process spanned four years, included multiple hearings, delays due to military service and regional security issues, and warnings against the contractor’s disregard for court orders.

Ultimately, the hotel’s supervisor finalized the accounts, concluding no additional payment was owed and that some sums should be deducted for repairs by other contractors. The court accepted this conclusion, found no evidence of bad faith or bias by the supervisor, and ordered the contractor to pay 100,000 shekels plus interest for legal costs, including the expert’s fees.