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Ruling: First we express our disgust with bus. The Torah strictly forbids taking interest on loans. Although many people legitimately rely on the heter iska to reframe loans so that the lender can be compensated for putting out money, this should not cover cases of ridiculously high interest, to individuals in need or businesses. Chazal say that one who lends with interest can expect his finances to crumble.
The first issue to decide is whether pl is a worker or a partner and whether that makes a difference. Pl says that he was just a worker and therefore is not responsible for losses and should not be a cosigner, whereas def says that he was a partner. Regarding purposeful mismanagement, i.e., giving more credit than he was allowed, it does not make a difference, as a worker who takes the business’ money without permission is responsible for it. Nevertheless, the determination will have some impact on certain points.
It is not accurate to call pl a simple worker. He was bus’s main active person, the business was known publicly as his, and he received 15% of net profits. Therefore, he can be seen as a partner on some level.
Nevertheless, pl is entitled to a salary, even for the final months during which there were not profits. First of all, the type of relationship, in which the business is essentially owned by def, makes it appropriate that pl would receive a salary, and the reason this was not initially done in a classic set payment was on technical grounds (not one that pl should be proud of). Furthermore, in the mediation paper prepared by Mr. P., there is a large sum earmarked for pl’s salary, and it is apparently marked with a check by def. We do not accept def’s convoluted explanation for agreeing to salary payment.
P'ninat Mishpat (832)
Beit Din Eretz Hemda - Gazit
605 - Compensating for a Governmentally Destroyed House – part II
606 - Losses from Financially (and Morally) Bad Loans – part I
607 - Losses from Financially (and Morally) Bad Loans – part II
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Beit Din Eretz Hemda - Gazit

P'ninat Mishpat Repercussions of a Sale that Turned Out Not Happening – part III
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P'ninat Mishpat Payment for Not Clearing Warehouse On Time – part II
based on ruling 75076 of the Eretz Hemdah-Gazit Rabbinical Courts

P'ninat Mishpat P'ninat Mishpat: Multiple Agreements and Parties – part IV
based on final ruling of 80082 of the Eretz Hemdah-Gazit Rabbinical Courts

P'ninat Mishpat P'ninat Mishpat: Did Any Furniture Go to the Buyer? – part I
based on ruling 84093 of the Eretz Hemdah-Gazit Rabbinical Courts

P'ninat Mishpat P'ninat Mishpat: Did Any Furniture Go to the Buyer? – part II
based on ruling 84093 of the Eretz Hemdah-Gazit Rabbinical Courts

P'ninat Mishpat P'ninat Mishpat: Late and Flawed Apartment
based on ruling 82174 of the Eretz Hemdah-Gazit Rabbinical Courts
Lessons
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Based on Siach Shaul, Pirkei Machshava V’Hadracha p. 263 (address at the cornerstone laying for the Yeshiva Chakla’it in Kfar Haroeh – 1938)
Based on Siach Shaul, Pirkei Machshava V’Hadracha p. 263 (address at the cornerstone laying for the Yeshiva Chakla’it in Kfar Haroeh – 1938)

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