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Ruling:The halacha that ribbit that was paid returns to the debtor applies only in regard to a loan for which interest was set from the time of the loan (Shulchan Aruch, Yoreh Deah 161). While pl says this was the case, his claim is very surprising. Pl himself provided a letter of reference from a leading rabbi, who attests that pl is very careful not to compromise halacha and ethics in business and that he asks all sorts of business-related halachic questions to rabbis. How, then, can pl say that he violated a clear Torah law of agreeing to outright usury without bothering to use a heter iska? It is more likely that the deal, like most similar deals that pl was involved in, was an investment, not a loan.
The Shulchan Aruch and Rama (YD 168:25) say that if there is a disagreement between a borrower and lender over whether the borrower gave ribbit that needs to be returned or whether he did not give any or gave it in a manner that is permitted, the lender is believed without the need for an oath. There is a machloket if the exemption from an oath is only when the lender says he did it in a permitted way or even when he totally denies receiving interest (see Beit Yosef, ad loc.). In this case, though, there is no question that def received more money than he gave. The question is just whether it was done in a permitted manner, and there should be no need for an oath. In our case, def’s position is supported by the fact that pl usually deals in investments rather than loans and that their previous deal was of that nature.
There is also another possibility that supports def. Their deal was done in a very unorganized manner, with a lot of trust (until their relationship soured). Thus, even if the money was given as a loan, there is no certainty that a specific promise of actual profit was made.
For all of the above reasons, def does not have to return any of the money pl gave him in what appears to be an investment deal.
P'ninat Mishpat (835)
Various Rabbis
234 - Rent on Interim Period
235 - A Question of Interest
236 - Full Rent for a Not Up-to-Par Apartment
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Various Rabbis
Various Rabbis including those of of Yeshivat Bet El, such as Rabbi Chaim Katz, Rabbi Binyamin Bamberger and Rabbi Yitzchak Greenblat and others.
Moreshet Shaul Moreshet Shaul: A Crown and its Scepter – part II
Based on Siach Shaul, Pirkei Machshava V’Hadracha p. 294-5
P'ninat Mishpat Complaints about Contractor’s Work – part II
(based on ruling 83037.1 of the Eretz Hemdah-Gazit Rabbinical Courts)
P'ninat Mishpat P'ninat Mishpat: A Contractor’s Leaving the Job in the Middle – part III
based on ruling 84013 of the Eretz Hemdah-Gazit Rabbinical Courts
P'ninat Mishpat P'ninat Mishpat: Problematic Lights?
based on appeal of ruling 84085 of the Eretz Hemdah-Gazit Rabbinical Courts
P'ninat Mishpat P'ninat Mishpat: Undoing a Problematic Partnership – part II
based on ruling 84061 of the Eretz Hemdah-Gazit Rabbinical Courts
Rabbis in Midrash
Lessons
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Various Events FOR WHOM NOT TO VOTE
Rav Zvi Yehuda Kook stressed that Israeli politics is G-dly, so I have no problem answering this common question on a Torani blog. Also, Free-Will is a G-d-given right and obligation, to "destine one's fate" (R. Soloveichik, Kol Dodi Dofek, 67), so I obviously don't tell others how to vote. But once not a few (especially young) have already asked, a couple of personal words from experience and thoughts from chazal & Rav Kook which may be of help to others, mainly for whom NOT to vote.
P'ninat Mishpat Fallout from Failure to Install Elevator – part II
based on ruling 85007 of the Eretz Hemdah-Gazit Rabbinical Courts
