Economic Dispute: Lawsuits Between Ben-Gurion University and Barbershop Owner

The owner of the "BARBER 7" chain claims that Ben-Gurion University breached a lease agreement, sabotaging the opening of his flagship branch. The university has filed a counterclaim for 500,000 shekels.

Source
Economic Dispute: Lawsuits Between Ben-Gurion University and Barbershop Owner
Photo: Ynet / צילום: shutterstock

A commercial dispute between the owner of the "BARBER 7" barbershop chain and Ben-Gurion University is currently being heard at the Magistrate's Court in Beersheba. The chain owner is seeking approximately 301,000 shekels in damages, alleging that the university obstructed the opening of his branch in the student village. In response, Ben-Gurion University has filed a counterclaim for half a million shekels.

The parties signed a lease agreement in October 2024 for a 58-square-meter space intended to serve as the chain's "flagship branch." The plaintiff claims that he was initially led to believe the property would be delivered in a finished state, only to be informed later that it would be provided as a "shell," requiring him to fund all adaptation works. The university denies these claims, stating that the "shell" condition of the property was clarified months prior to the signing.

Represented by attorneys Gefen Friedman and Tamir Dahan, the plaintiff argues that the university delayed the handover due to disputes over guarantees and demanded a deposit of 54,967 shekels, which he claims violated the lease terms. Furthermore, upon arriving with a construction crew, he discovered a lack of essential water, electricity, and sewage infrastructure. The conflict intensified over flooring specifications: after an inspector initially authorized the use of a "sumsum" (fine gravel) base, another inspector ordered the work to stop and demanded the removal of the installed flooring.

The chain owner claims he invested 156,122 shekels in construction and professional fees, lost 60,000 shekels due to the cancellation of hairdressing courses, and incurred an additional 30,000 shekels in losses by returning to his previous, more expensive location. He is also seeking the return of his deposit.

The university, represented by attorneys Guy Leichter and Dana Mahajna, presents a different narrative. It asserts that the tenant failed to provide timely bank guarantees, insurance, and project specifications, and began construction without the required permits. The university claims it made multiple attempts to accommodate the tenant, but he refused to rectify defects, abandoned the property in an unusable state, and unilaterally terminated the contract.

The university's counterclaim cites damages totaling approximately 920,000 shekels, including lost rental income for the remainder of the lease, restoration costs, and agreed-upon penalties. After forfeiting the deposit, the university set the remaining claim at 864,000 shekels, but filed for 500,000 shekels for court fee purposes.

Related News