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Case: The plaintiff (=pl), a company that produces electricity for the electric company (=IEC) from solar panels, rented rooftops to place the panels from the defendant (=def), a settlement. Def supplies electricity for their residents through bulk supply (the electric company is not connected to each home). The same electricity room and closet transfers electricity both ways between def/pl and IEC. The involvement of IEC made it necessary to begin work before the contract was complete. IEC carried out three inspections of the electricity room. After the last, they claimed mortal danger and demanded redoing the electricity closet, with a threat of otherwise rejecting pl’s project andshutting down def’s electricity. Pl and def disagreed as to who should be responsible for the renovations, and it was decided that pl would perform them, and beit din would rule on possible reimbursement. Pl claims that their agreement requires def to provide electrical infrastructure and that def knew this was expected to include layouts of money. Def also benefitted from the replacement of their very dangerous electrical room with a quality one at an under-market price. Def claims that pl should have checked that def’s infrastructure was sufficient before beginning work. At the time the agreement was signed, pl, which is in the field and met with IEC, were aware of the expense, while def was not. The improvements are not particularly beneficial for them, as def is in the process of phasing out the bulk supply system and will not need the electrical room. Therefore, the deal, as pl presents it, is unprofitable for def, and they would not have agreed to it.
Ruling: The contract states that def is obligated to fix any problem that arises in the electrical system before construction is complete. It also states that def will allow pl to make use of the bulk supply meter. Pl claim that these provision prove that def was required to provide a reliable infrastructure at its expense. Def responded that it was its responsibility to do the upkeep of what existed, but pl was to check if what existed met its needs. Pl adds that the problem with the electric room was not specifically in regard to pl’s needs but for def’s own needs. In this regard, beit din agrees with pl that the lack of feasibility for even its own purpose was def’s responsibility.
P'ninat Mishpat (829)
Various Rabbis
421 - Switching Accountants Due to Slow Results
422 - Responsibility for Electricity Infrastructure – part II
423 - Responsibility for Electricity Infrastructure – part III
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