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Ruling: We saw last time that pl was guilty of conflict of interest for supervising his own company. Now we will look into damages from that fact
The main damage is the extra money that def paid comp. Although pl is correct that pl did not tell him it was time to pay, still pl is responsible for the payments. As the person who was in charge of comp’s finances and bank accounts at that time, it is implausible that he did not know of the payment of hundreds of thousands of NIS to his small company (one check he deposited personally). Therefore, he had a responsibility to inform def that they should not be paying, as his job included protecting def’s money, even though it was not expected to come in this form. Actually, in following the bank accounts, we can see that the early influx of money to comp enabled cont to pay pl for the purchase of comp earlier than he otherwise could have. The question is about the appropriate consequence.
Pl’s professional treatment of def, which enabled comp to receive more money than they deserved, is like a paid worker who gives bad advice to a client about his finances (see Shulchan Aruch, Choshen Mishpat 306:6). [Many sources were analyzed to flesh this out, but we will be skipping them.] Therefore, if cont/comp is not willing to complete work until it reaches the value of that which def paid, pl will have to pay the difference. In this regard, the value of the sprinkler system will be evaluated as only 84,000 NIS, not the 400,000 NIS they paid for it.
P'ninat Mishpat (832)
Beit Din Eretz Hemda - Gazit
615 - The Mouse Guarding the Cheese? – part I
616 - The Mouse Guarding the Cheese? – part II
617 - Why Was the Etrog Order Changed? – part
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Beit Din Eretz Hemda - Gazit
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