Israeli Supreme Court Limits Compensation for Buyers Who Block Contractors From Repairs
The Israeli Supreme Court ruled that homebuyers who sue contractors for construction defects but do not allow repairs are entitled to reduced compensation rather than losing it entirely. This decision reversed a previous ruling by the District Court. The case involved two buyers from a Ramat Gan project who sued the contractor "Shemi Ashkelon" without permitting defect repairs. The Supreme Court, led by Justice Alex Stein, held that denying the contractor a chance to fix defects justifies lowering compensation but not eliminating it, emphasizing fairness to buyers while preventing contractors from escaping costs. Compensation is limited to the contractor's repair costs, which are significantly lower than market prices.
In a separate ruling, a Tel Aviv court ordered apartment owners at 261 Dizengoff Street to renovate their building's facades at their own expense following a lawsuit by the municipality. The court rejected owners' claims that the municipality lacked authority, affirming that municipal bylaws empower the city to demand facade repairs to preserve the urban image. Since owners ignored multiple warnings and failed to appeal, the renovation order became binding. The court clarified that the municipal law allows demands beyond wear and tear and includes all building exteriors. Owners must apply for permits within 30 days and complete repairs within six months.
Additionally, a Jerusalem family court dismissed a request to annul a mutual will of deceased parents that excluded two daughters from inheritance, ruling the daughters had no valid grounds and acted in bad faith by delaying their claim. The court found no evidence of undue influence or forgery and upheld the will's validity, ordering the daughters to pay legal costs. This case underscores the high threshold for overturning wills after approval.
These rulings highlight key legal principles in Israeli property and inheritance law, balancing rights and responsibilities of buyers, property owners, and heirs.
