Landowners Seek to Annul Florentin Arbitration Award Over Undisclosed Ties
The Svirsky brothers petitioned the Tel Aviv District Court to annul a 55 million shekel arbitration award regarding an aborted Florentin real estate project, citing an undisclosed connection involving the arbitrator.
The Svirsky brothers partnership, owned by the Zaluf family and holding land in the Florentin neighborhood of Tel Aviv, petitioned the Tel Aviv District Court on Sunday to annul an arbitration award issued by arbitrator Eitan Orenstein, former president of the Tel Aviv District Court. The dispute is between the landowners and the real estate development company Boulevard Terra, whose owners include Amir Federman of the Dan Hotels chain, Erez Navon, and company CEO Shai Polonsky.
The 70-page arbitration award, handed down in April 2026, ruled that the Svirsky landowners must pay the development company 55 million shekels as part of a dispute over an aborted project. The debt continues to accumulate hundreds of thousands of shekels in interest every week.
The landowners have raised an unusual claim: that Orenstein has a connection, formed during the arbitration, that was not disclosed to them. The alleged connection is that Adv. Zvi Chen, Orenstein's defense attorney in a criminal investigation against him, is the brother of Adv. David Hamo, a senior partner at the Firon law firm, which represents Boulevard in other proceedings related to the same dispute. Notably, in the arbitration proceedings themselves, Boulevard is represented by the Arnon, Tadmor-Levy firm.
According to the Svirsky brothers, Orenstein and Boulevard should have disclosed the connection between the arbitrator's defense attorney and his brother, who represents the company. They argue that even if arbitrator Orenstein was unaware of the connection, he should have checked with his attorney (Zvi Chen) regarding family members working in the legal profession. Industry sources note that arbitration proceedings are subject to confidentiality, meaning Orenstein could not inquire about specific cases with his associates.
The petition also noted that Adv. Zvi Firon, head of the Firon law firm, which accompanied Boulevard, indirectly holds 2.7% of its shares. In addition, it was claimed that there are long-standing loyalty ties between Adv. Firon and the Federman family, whose members are among the shareholders and directors of the development company.
Low Probability of Success
The arbitration began in 2022 and dealt with the question of which party was responsible for the cancellation of the project and the financial damages incurred. In 2024, arbitrator Orenstein hired the services of Adv. Chen in a case where he is suspected of text message exchanges with former Israel Bar Association head Efi Nave (the investigation is still ongoing).
Adv. David Hamo is the head of the litigation department and a partner at the Firon firm, which represented Boulevard in legal proceedings concerning the dispute over the Florentin project. The petition stated that the Firon firm accompanied Boulevard in the project for over a decade, in engagements with Svirsky, buyer agreements, and legal proceedings that led to Orenstein's appointment.
On its face, the chances of the petition being accepted appear low, as courts are reluctant to interfere with arbitration awards, especially when the alleged connection is remote.
The Firon firm stated: "The connection between Boulevard and the Firon firm and Adv. Hamo, as well as Adv. Zvi Firon's indirect holding of shares in Boulevard, were known to both parties in the arbitration. The Firon firm did not represent Boulevard in this arbitration, and any attempt to claim a connection to the arbitrator due to Adv. Hamo and Adv. Chen being brothers is baseless."
Real Fear of Bias
The Svirsky brothers argue against the arbitration award that it contains legal and logical difficulties, which led them to turn to the intelligence and strategy firm Proxima-X, headed by Asasa Ram, through which the alleged connection was uncovered.
The landowners also claim that versions presented in proceedings where Adv. Hamo represents Boulevard were placed before the arbitrator. In April 2025, a settlement agreement was signed in a lawsuit by buyers against Boulevard, which was submitted to the arbitrator, and Boulevard sought to cast the cost onto Svirsky.
According to the Svirsky brothers, they are not required to prove improper motive or conscious influence on the arbitrator, and the test is a "real and objective fear of bias." They argue that the connection between the brothers and the involvement of the brother attorney and his firm's owners in Boulevard establish the fear that justifies annulling the arbitration award.
55% of Damages Imposed on Landowners
The background to the dispute is a project that Boulevard undertook to promote on Svirsky land spanning 2.8 dunams on Eilat Street in Tel Aviv. The engagement took place in 2013. The companies signed an agreement to execute a residential construction project aimed at building 188 apartments in two buildings spanning about 1,000 square meters. The development company sold units in the project and worked to obtain a building permit. For about five years, no building permit was obtained, and ultimately purchase agreements with buyers were canceled.
These moves led to a dispute between the landowners and Boulevard alongside a lawsuit by buyer groups. The dispute was debated in a lawsuit and counter-lawsuit in the Tel Aviv District Court starting in 2019.
In 2022, arbitration began before Orenstein. During the arbitration, the development company claimed that the landowners' failure to sign bank financing accompaniment documents caused the project's failure and damages. Orenstein accepted the claim, imposing 55% of the damages on the landowners. He acknowledged that other factors contributed to the project's failure and determined it was not proven that their signature would have brought about a permit for the project.
The Svirsky brothers previously filed a petition in April 2026 to disqualify the arbitration award on another ground of judicial estoppel. A hearing on this petition is expected this week.
The Svirsky brothers are represented in the proceedings by attorneys Roy Sluky and Yaron Avidan from the Sluky firm. Boulevard Terra is represented by attorneys Barak Tal and Tomer Bar-Nathan from the Arnon, Tadmor-Levy firm.
