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Abridgement of First Court Ruling: Testimony indicated that while the yeshiva’s survival was questionable, pl made improvements that increased its viability, which may warrant def’s compensation. However, since def had spent a lot to keep the yeshiva operating, they were unwilling for further investment. This makes it like the Talmudic case of a field not made for planting (Shulchan Aruch, Choshen Mishpat 375:1), where clear benefit from the actions appears lacking. Additionally, the Rashba (Shut VI, 111) states that if the recipient explicitly refuses to pay for claimed benefits (as written in the agreement), he is exempt. While some say there is still payment when there is clear benefit, this is not the case here.
P'ninat Mishpat (829)
Beit Din Eretz Hemda - Gazit
815 - P'ninat Mishpat: A Used Car with a Tendency Toward Engine Problems
816 - P'ninat Mishpat: Benefit from Unsolicited Efforts of the Plaintiff
817 - P'ninat Mishpat: Damage from Renovations
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Claims of Litigants on this Point: Pl argues that the yeshiva could not have survived without the improvements, and that they paid to make a "camp" for the students during vacation because this was something the yeshiva owed to the students.
Appeal Ruling: The agreement prescribes pl’s work as beginning after summer break so that nothing pl did is governed by agreement, but by providing benefit. The Rashba (ibid.) rules that if one tells one who is about to do something on his behalf that he is not interested in the benefit he plans to do, he is exempt from paying for it, and it is clear from the Rif and other Rishonim that one cannot force benefit and compensation for it on someone. In this case, pl admitted that def told him not to make expenditures, and they also did not end up helping.
Regarding the expenditures for the "camp," even if def was obligated to make them, the rule is that when Reuven pays Shimon for the loan that Levi took from him, Levi is not required to pay Reuven (see Shulchan Aruch, Choshen Mishpat 128:1; see Shach ad loc. 5).
Although pl claims that he outlaid the money because def gave him reason to rely on him (histamchut) that there would be a yeshiva, the original ruling correctly explained why histamchut does not apply in this case.
Beit Din Eretz Hemda - Gazit

P'ninat Mishpat Payments after a Gradual End of Employment
(Based on ruling 82024 of the Eretz Hemdah-Gazit Rabbinical Courts

Igrot Hare’aya Raffle of Property in Eretz Yisrael for Tzedaka
Igrot Hare’aya – Letters of Rav Kook: – #220

Igrot Hare’aya Departure of an Uncle to Eretz Yisrael
Igrot Hare’aya – Letters of Rav Kook: Vol. I, #1 , p. 1-2 – part II

Igrot Hare’aya Trying to Arrange Purchase of Land in Eretz Yisrael
#222 Date and Place: 2 Elul 5669 (1909), Rechovot

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

P'ninat Mishpat P'ninat Mishpat: Agricultural Water Rights – part I
based on ruling 84122 of the Eretz Hemdah-Gazit Rabbinical Courts
Lessons
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Kuzari -Rabbi Ari Shvat Kuzari class 9 - "Seeing is Believing" (parag. 21-30)
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