Unusual remedy for delay in apartment delivery: thousands of shekels even before the lawsuit was heard
The Herzliya Magistrate's Court issued a temporary injunction ordering ongoing statutory compensation for delays in apartment delivery in an urban renewal project in Petah Tikva, even before the lawsuit was heard on its merits. The court awarded nine plaintiffs monthly sums ranging from 6,250 to 7,500 shekels.
The Herzliya Magistrate's Court issued an unprecedented temporary injunction, ordering the developers of an urban renewal project on Haim Cohen Street in Petah Tikva to pay ongoing statutory compensation totaling thousands of shekels for delays in apartment delivery, even before the lawsuit was heard on its merits. This is an unusual step, as such compensation is typically awarded only after the case is resolved. The court awarded nine plaintiffs monthly sums ranging from 6,250 to 7,500 shekels per month. The delay in delivery ranges from 23 to 39 months. The developers, Orka Bonei Ir Ltd. and Hithadshut Haim Cohen 28 Petah Tikva Ltd., announced their intention to appeal. Attorney Erez Asraf, representing the buyers, said the decision restores the Sale Law to its original intent, while Attorney Shalom Simon warned that this is an exceptional remedy dependent on the circumstances.