By: Adv. Moshe Taieb

Construction Defects Compensation – Lev Gedera Project Ruling

A court ruling in construction defect proceedings at the Lev Gedera residential project awarded 8 families combined compensation of NIS 172,130 against the developer Snaura. The decision sets important precedents regarding developer liability for construction defects, the legal weight of a signed handover protocol, and the methodology for calculating damages.

Background of the Case

The plaintiffs — 8 families who purchased apartments in the Lev Gedera project — discovered numerous construction defects following handover. Despite having signed a handover protocol, the families argued that the defects were latent or were discovered only after occupancy, and that signing the protocol did not waive their legal rights.

Key Legal Issues Decided

The court examined whether signing a handover protocol extinguishes claims for construction defects. It held that latent defects not apparent at the time of signing remain actionable, and that the developer cannot shelter behind a formal protocol where the defects were concealed or became apparent only with use.

Developer Liability Principles

The ruling reinforced that developers bear statutory liability under the Sale Law (Apartments) for defects discovered within the warranty period, regardless of contractual waivers. The court detailed the standards for determining whether a defect is covered under the statutory warranty.

Damages Calculation

The court awarded NIS 172,130 covering repair costs, alternative accommodation during works, and consequential damages. Each family received a proportionate share based on the defects specific to their apartment.