A customer sued a mobile phone company over credits of ILS 342 she had been promised but never received, and also asked for compensation for distress and for the delay. The court struck out the claim for lack of standing against the company she sued, but left her free to bring a new claim against the right party.
What happened
A customer filed a small claim against a mobile phone company. She said that after two requests to customer service she had been promised credits on charges from January 2024, totalling ILS 342, but the money was never returned. She argued that the company had charged her against her will, in breach of the Consumer Protection Law, and asked, in addition to the refund, for ILS 2,000 for distress and another ILS 500 for the delay in the refund.
The parties agreed that the case would be decided on the papers alone, without a hearing. The court gave both sides a chance to add arguments and attach evidence.
The parties' arguments
The company she sued, which filed its defence late and without permission, said the claimant was not its customer at all and that its systems held no information about her. According to the company, the proper party to sue was another communications provider in the same group. It also argued that the claim was general, lacked detail and supporting documents, and denied any right to compensation for distress.
In her additional submissions, the claimant asked to amend her claim and replace the defendant with another company in the group that provides internet services. The document she attached showed that she was owed a refund of only ILS 124. She argued that all the companies in the group are really one body, and that separating them is meant to confuse the public. As proof, she pointed to the shared website, which has tabs for mobile, internet, television and electricity.
Why the defendant was the wrong party
The court noted that whoever claims a contract exists must prove it, especially when the other side denies any relationship. The claimant attached no contract, invoice or other document linking her to the company she sued. The fact that the same brand name appears on documents is not enough.
The shared-website argument was also rejected. Each company is a separate legal person under section 4 of the Companies Law, with its own registration number, and as a rule only it is liable for contracts it has made. The fact that the parent company gathers all its subsidiaries on one website, each with its own page, is not deception and does not make them liable for each other's debts. The court compared this to sisters living in the same flat: if one breaks a contract, you cannot sue the other just because they live together. To hold a company that is not a party to the contract liable, you must prove that it took the obligation upon itself, and even piercing the corporate veil within a group of companies is far from simple.
The court added that the claimant has a personal account area on the website, where invoices and documents can be found. That is where she should have started: identifying which company was billing her, and checking whether the credits had been made and to which account. Because she did not do so, and given the burden of proof on a claimant, this counted against her. The claim also did not meet Regulation 5 of the Small Claims Court (Procedure) Regulations, 5737-1976, which require the facts to be set out and the relevant documents attached. Finally, the claimant herself had realised that the defendant needed to be replaced.
The outcome
The claim was struck out at the outset for lack of standing between the claimant and the company she sued. Striking out does not close the door: the claimant may look into the matter and file a new claim against the appropriate company, with sufficient evidence and documents. Because the case was decided in writing, with no costs of attending court, no costs were awarded and each side bears its own expenses. An application for leave to appeal may be filed with the Tel Aviv-Jaffa District Court within 30 days of receiving the judgment.
Key takeaways
- Before suing, check the invoice or contract for the exact name and registration number of the company that bills you.
- A shared brand and website do not make every company in a group liable for the others' debts. Sue the company you actually contracted with.
- Log in to your personal account, download your invoices and check whether the credit was made before going to court.
- Even in a small claim, attach documents: confirmation of the promised credit, invoices and records of your contacts with customer service.
- A claim struck out for suing the wrong defendant can usually be refiled against the right party, this time with proper evidence.
This article summarizes a published Israeli court decision in plain language and is not legal advice. Every case depends on its facts. The parties' names have been omitted. This is a first-instance decision and may be appealed.
