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Beit Midrash
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Ruling: Pl is correct that his sale of comp was not fictitious, and at the time of the agreement with def, he intended that cont would receive practical control quickly. However, the sale did not go through as planned, as transfer of shares from pl to cont and control of comp’s bank account were delayed by a year because cont did not pay according to schedule. We do not accept pl’s contention that this control, which included depositing and writing checks, was only a formality. Therefore, the problem of a conflict of interest, when one is, in effect, supervising his own company’s work, is a serious one. Therefore, def’s agreement to pl’s role was based on misrepresentation, and pl does not deserve the balance of his salary that he has demanded, even though there is not proof that he did not visit the building site as much as he was required.
Regarding the choice of comp to do the work, it is clear that pl was significantly involved. However, it was not proved that the choice of comp was not a good one, as their price was lower than another estimate, and def did not prove that it was too high for the work involved. Only the price given for the anti-fire sprinkler system was excessive (400,000 NIS instead of 84,000 NIS offered by a different company). This is reason for pl to not receive his salary for organizing and supervising.
P'ninat Mishpat (832)
Beit Din Eretz Hemda - Gazit
613 - Who Drove Worse?
614 - The Mouse Guarding the Cheese? – part I
615 - The Mouse Guarding the Cheese? – part II
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Beit Din Eretz Hemda - Gazit

P'ninat Mishpat A Commercial Rental for a Closed Business – part II
based on ruling 80047 of the Eretz Hemdah-Gazit Rabbinical Courts

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P'ninat Mishpat P'ninat Mishpat: Smoking Rights in a Rental? – part II
based on ruling 85076 of the Eretz Hemdah-Gazit Rabbinical Courts
Lessons
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