A couple received their apartment in Ashkelon six months late and sued for compensation in small claims court, while the developer argued that the war was force majeure and the case too complex for that court. The district court refused the developer leave to appeal and left an award of ILS 35,100 in place.
What happened
A couple bought an apartment in Ashkelon from a developer. Under the contract, as updated, the apartment was due to be handed over on 21.3.2024, but the keys were only delivered on 19.9.2024, six months late.
The buyers sued in the Ashdod Small Claims Court. They sought the compensation set by section 5A of the Sale (Apartments) Law: ILS 3,900 per month multiplied by 150%, plus ILS 2,000 for distress, for a total of ILS 37,100.
The developer's arguments
The developer asked for the claim to be dismissed at the outset, for three reasons:
- Jurisdiction: it said the dispute was complex and belonged in the Magistrates' Court, not small claims.
- Class action: a motion to certify a class action over late handovers was already pending against it, the buyers were supposedly part of the class, and they should have asked to opt out before suing on their own.
- Force majeure: the delay was allegedly caused by circumstances beyond its control, including the "Iron Swords" war, shortages of workers and materials, and delays with the authorities.
The developer's representative did not appear at the hearing set for 31.5.2026, and the court ruled that day on the written pleadings. It held that the case was within its jurisdiction, and that the developer had not offered even preliminary evidence linking the war to the delay in this particular apartment. The buyers were awarded the statutory compensation of ILS 35,100, plus ILS 2,000 in costs. The distress claim was rejected.
The district court's decision
The developer sought leave to appeal. It argued that the issue was complex and wide-ranging, that no account was taken of a medical incident that delayed its representative on the way to the hearing, that there was a risk of conflicting rulings with the class action, and that compensation was calculated from a lease of the apartment itself rather than the rent of a comparable apartment. The court rejected the request without even asking the buyers to respond:
- Small claims court has jurisdiction. Compensation under the Sale (Apartments) Law is a simple arithmetic calculation. A small claims court may transfer a case to the Magistrates' Court, but that is a matter of discretion, not lack of jurisdiction, and merely raising force majeure does not justify a transfer. A transfer burdens claimants with court fees and legal costs, so their choice of small claims should be respected.
- Force majeure requires evidence. The developer did not explain how the war delayed its specific project and attached no documents, either in its defense or in its request for leave to appeal. Nor did it bring any evidence on the rent, so the only evidence was the buyers'.
- The class action is no bar. Until the motion is certified, there is no class and nothing prevents an individual claim. The court added that an individual claim is the main route to this kind of compensation, and noted that the developer itself had asked, in the class action, for the motion to be dismissed on the ground that the dispute suited individual proceedings. Such double-handed conduct, it held, is inconsistent with the duty of good faith.
- The missed hearing changed nothing. The judgment was given on the merits, based on the pleadings, not because the developer's representative failed to appear.
The outcome
The request for leave to appeal was denied, and the ILS 35,100 award and the costs stand. Since no response was requested, no further costs were ordered. The court stressed that its decision rests on the developer's failure to detail and support its force majeure claim, and that it is not a precedent for other cases, which will be decided on the evidence the parties present.
Key takeaways
- Got your apartment late? Check the updated handover date in your contract and calculate compensation under section 5A of the Sale (Apartments) Law. If the amount is within the limit, you can sue in small claims court.
- Keep documents on the rent during the delay period, such as a lease. In this case they were the only evidence of the amount of compensation.
- A developer's "war" or "force majeure" argument is not enough on its own. The developer has to show, with documents, how the event delayed your specific project.
- A class action motion that has not yet been certified does not stop you from suing individually. Note that once your own case is decided, you cannot be part of the class if it is certified.
- If you are the defendant, attend the hearing and file organized evidence with your defense. General claims without supporting documents will not hold up.
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.
