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Case: The defendant (=def) is a community yishuv which for decades has been renting out commercial buildings, including a 220 sq. meter structure rented by pl. In recent years, def started raising the rent per meter of these buildings and last year they removed the longstanding 50% discount on half the area. Pl complains that def may not take advantage of pl’s lack of alternatives to raise the price in a manner that is not true to market values, and against the standard practice that rental agreements for commercial property are for 5-10 years. The 50% discount was done to encourage businesses to come to the area and once this was agreed upon decades ago, def is committed to keep to this arrangement. Def was also required to negotiate the matter with pland not present the changes as a fact, and warning time needed to find a new location is 6 months. Therefore, pl demands that the rent should be linked to the inflation rate. Def responds that by a vote of its board, they may change prices like any landlord in a free economy and that they did allow pl to plead his case before the board, who rejected it. Regarding the reason for the change in policy, market forces no longer make it necessary to encourage rentals and the deficit in def’s budget makes it necessary to raise revenues. They delayed the end of the discount, and they gave ample notice for relocation if pl is unhappy with the new conditions.
Ruling: The main question is whether beit din has a right to monitor market rates when a price seems unfair or whether the free market system can be relied upon. There are two opinions in the gemara (Bava Batra 89a) on this basic matter, and the Rambam (Geneiva 8:20) and the Shulchan Aruch (Choshen Mishpat 231:20) rule that in some cases,beit din can intervene. However, the Shulchan Aruch limits this intervention to the sale of basic foods and says that it applies only whenbeit din is capable of monitoring the entire local market and only when the price control will leave the seller in a reasonable financial situation as well. In this case, all three reasons to avoid intervention apply, as real estate is not covered, because neither this beit din or (presently) any government authorities are able to set prices, and because defneeds extra revenue. It has not been proven that the new prices are unreasonable compared to other places, but in any case, the rules ofona’ah (mispricing more than a sixth) do not apply to real estate (Shulchan Aruch, CM 227:1-2).
P'ninat Mishpat (829)
Various Rabbis
375 - Damages from Water Pressure
376 - Preventing Unfair Rent Hikes – part I
377 - Preventing Unfair Rent Hikes – part II
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Next time we will discuss the matter of advance warning for changing the rental conditions.
P'ninat Mishpat P'ninat Mishpat: A Contractor’s Leaving the Job in the Middle – part I
based on ruling 84013 of the Eretz Hemdah-Gazit Rabbinical Courts
P'ninat Mishpat P'ninat Mishpat: How Many Dayanim?
based on ruling 84139-1 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
Rabbis in Midrash
Lessons
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Kuzari -Rabbi Ari Shvat Kuzari class 9 - "Seeing is Believing" (parag. 21-30)
These paragraphs elaborate on the theme that seeing and knowing is better than any attempt to prove logically, and begins explaining the difference between Israel and gentiles.
Ein Aya Various Universal Stages of the Geula Process
Rav Kook examines the various stages of redemption, explaining how (in addition to the obvious oft-mentioned stages of ingathering the exiles, reviving the Hebrew language, army, state etc.) the messianic dream of world prosperity, the State of Israel and world unity can and are realistically and logically gradually coming true.
Kuzari -Rabbi Ari Shvat Kuzari class 8- "Answering Questions on the Kuzari's Proof from Mass Revelation
How do we know that the "claim" of mass revelation to 2,000,000 witnesses at Mt. Sinai is really true? This important class answers all of the questions skeptics ask about this claim of the Kuzari.
Ein Aya Armies Still Necessary for Balance & the War Against Wars
Rav Kook explains why the world was originally divided into the various seemingly contradicting ideologies and cultures, in order to develop each one respectively. Swords or armies symbolize how each respective ideology defends themselves, as well as deters their opposing ideologies and cultures. On the other hand, the messianic era will be one of peace, and Rav Kook explains the transition to that stage, which mankind is already undergoing.
The Land of Israel LGBT'S IN ISRAEL
The question was asked, how can one make Aliyah with the LGBT parades?
Kuzari -Rabbi Ari Shvat Kuzari class 7 - Five Accumulative Proofs of G-d
As a preparation for the Kuzari's classic proof of G-d from the mass-revelation at Sinai, we start here with 5 other directions to strengthen our belief which also contribute to what the Kuzari will present as well.
Ein Aya Muscle & Meaning: The Dual Nature of Gevurah (Physical Strength)
Is physical strength and fitness a necessity or an ideal? Although it if often totally overlooked among topics of Judaism, Rav Kook writes that it clearly is also a necessity to deter the many enemies of Israel, but even in Y'mot HaMashiach, in the Messianic era, to a certain extent, it's ideal continues even after our enemies will have been finished off.
