Netanya Families Sued for 1 Million NIS Over Defects and Won Only 65,000 NIS

Three families residing in a private housing project in Netanya sued developers for nearly 1 million NIS over construction defects, but will be compensated a total of only 65,210 NIS plus legal expenses, according to a recent ruling by Judge Liat Har-Zion of the city's Magistrate's Court.

The ground-floor apartments were handed over to the buyers in 2016. The families, represented by Adv. Nir Altman, relied on private expert opinions and claimed construction defects and depreciation, totaling 971,023 NIS across three lawsuits.

Court Proceedings and Expert Assessment

The developers, represented by Adv. Lia Endel, responded that although the buyers claimed severe flaws discovered shortly after delivery, the comprehensive notice regarding all defects was sent only in November 2020—over four years later. They stressed that earlier communications regarding specific issues did not include most of the defects sued for.

During the proceedings, a court-appointed expert evaluated the claims, with initial estimates significantly lower than the lawsuit amounts. For example, in a claim of about 296,000 NIS, defects were estimated at approximately 27,500 NIS.

"The parties reached a settlement under which the amount in the supplemental opinions would be paid, subject to a three-year warranty, while the question of additional costs and legal expenses was left for the judge's decision."

Final Verdict and Indemnification

The judgment was handed down by consent via compromise without reasoning. The first family was awarded 34,775 NIS and 14,550 NIS in expenses; the second, 19,080 NIS and 7,300 NIS; and the third, 11,355 NIS and 6,000 NIS. In total: 65,210 NIS in compensation and 27,850 NIS in expenses.

Although the developers were ordered to pay the buyers, it was ruled that the executing contractor and its shareholders will ultimately bear the compensation amounts, alongside 146,679 NIS in legal expenses owed to the developers.