Diamond Dispute Between Billionaire Michael Mirilashvili and Cousin Reaches Supreme Court
Sabbatai Elon, cousin of billionaire Michael Mirilashvili, has appealed to the Supreme Court over a dismissed lawsuit regarding a large diamond deal. Elon claims an oral agreement for 10% of profits and 5% in fees, totaling NIS 50 million, for his role in supervising diamond operations in Russia. The appeal argues the lower court made legal errors and ignored key agreements, while Mirilashvili's team is confident the ruling will stand.
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- Sabbatai Elon is appealing to the Supreme Court regarding a dismissed diamond deal lawsuit against Michael Mirilashvili.
- Elon claims an oral agreement for 10% of profits and 5% in fees, totaling NIS 50 million.
- The appeal argues the district court made flawed legal assumptions and ignored key questions.
- A contradiction in Mirilashvili's defense regarding Elon's compensation is highlighted.
- The appeal also challenges the NIS 1 million legal costs awarded to Mirilashvili.
Sabbatai Elon, cousin of billionaire Michael Mirilashvili, has appealed to the Supreme Court against a lower court ruling that dismissed his lawsuit concerning a major diamond deal. The district court had previously ordered Elon to pay Mirilashvili NIS 1 million in legal fees and expenses.
Elon is seeking NIS 50 million, claiming an oral agreement entitled him to 10% of the diamond deal's profits for his supervisory role in sorting and polishing diamonds at a Russian factory, and an additional 5% of the diamonds' cost as brokerage and initiation fees for bringing the deal in 2009. Elon alleges that Mirilashvili purchased goods worth approximately $50 million, which were subsequently sold for at least $160 million. He claims Mirilashvili reneged on his rights despite Elon fulfilling his obligations and traveling to Russia numerous times.
The appeal argues that the district court's ruling was based on flawed legal assumptions and ignored the key question of what compensation Elon was to receive for his work. Elon's legal team contends that a partnership involving one party's financial investment and the other's labor is a common arrangement, and Elon's investment of time holds economic value. The appeal also highlights a contradiction in Mirilashvili's defense, which initially claimed Elon worked for free as a goodwill gesture, but later stated Elon received NIS 429,000 for his efforts.
Furthermore, the appeal challenges the district court's award of NIS 1 million in legal costs, citing a significant power imbalance between the parties and the financial burden on an individual with limited economic capacity. Mirilashvili's representatives expressed confidence that the appeal would be rejected, asserting the district court's ruling is well-founded in evidence and law.