How to read a judgment in a construction defects claim

Where do you start reading?

Start from the last part, the "conclusion" or "result". It states what the defendant must pay, to which date the amounts are revalued, and what was awarded in costs. Then go back to the reasoning to understand how each amount was calculated, and what was rejected and why.

As an example throughout this article we will use CC (Herzliya Magistrates') 18563-04-22 Lemel v. V.M.L. Hatzfira Ltd. (26 August 2025). Purchasers of an apartment in a TAMA 38 project in Bat Yam sued the company that sold them the apartment, and were awarded compensation under several heads. The judgment sets out each component separately in a table at the end, and states that the amounts are "revalued to the date of judgment".

Repair cost: why is the amount different from our expert's opinion?

Because when the court appoints its own expert, that expert's opinion is usually the basis for the calculation. In the Lemel case the parties did not ask to cross-examine the court-appointed experts, and the court adopted their opinions in full.

Note two things in this part. First: if the contractor has already repaired some of the defects during the proceedings, the cost of those repairs is deducted. In Lemel the company raised the ceiling in part of the apartment, so the cost of raising it was deducted. Second: objections to the expert's pricing must be raised in time, through clarification questions or cross-examination. The court rejected objections of this kind that were raised for the first time in the closing submissions.

"Casual contractor" and "supervision": what are these additions?

The expert sometimes estimates what the repair will cost the contractor itself, and what it will cost the purchasers if they hire another contractor (a "casual contractor"). Where the contractor has lost its right to repair, the higher cost is usually awarded, together with engineering supervision and VAT.

In Lemel the expert found that the cost to the purchasers was 30% higher than the cost to the company, and the court awarded the cost to the purchasers, because the company had "denied its duty to repair". By contrast, where the contractor was not given a fair opportunity to repair, compensation may be reduced to the cost the contractor itself would have borne (CA 7799/01 Salim v. Sharvit). Details in the article repair or monetary compensation, and the explanation of why VAT and supervision are paid even without a repair, in the article compensation in a construction defects claim.

From which date are linkage and interest calculated?

From the date the court sets for each component. For the repair cost it is often the date of the expert's opinion, for expenses actually incurred the date of the expense, and for mental distress sometimes the date the claim was filed.

In Lemel, linkage differentials and interest were added to the repair cost from the date of the opinion, to the works the purchasers carried out themselves from when they were carried out, and to mental distress and the reimbursement of expenses from the date the claim was filed. For example, compensation of ₪10,000 for mental distress became ₪12,220 on the date of judgment. When comparing the amount awarded with the amount claimed, keep this addition in mind.

Loss of value: when does it appear in the judgment?

When a defect remains in the apartment that cannot be repaired. In Lemel the safe room remained lower than the height promised in the specification, and a court-appointed appraiser assessed loss of value at 3.75% of the apartment's value.

The court held that loss of value should be calculated on the apartment's value close to the date possession was delivered, not on its value at a later date, and awarded ₪46,462, which came to ₪62,980 with linkage differentials and interest. Where the defect can be fully repaired, a claim for loss of value is often rejected. Details in the article compensation in a construction defects claim.

Why was a head of claim not awarded?

The common reasons: the head was not proved by evidence, it was not included in the statement of claim, or a lower amount was claimed for it. The court generally does not award more than was claimed in the statement of claim.

• Expanding the scope: in Lemel the purchasers raised a claim for late delivery in their closing submissions. The court held that this was an impermissible expansion of the scope of the dispute, because the claim did not appear in the statement of claim.
• The amount claimed as a ceiling: the purchasers asked in their closing submissions for higher compensation for mental distress. The court held that the amount claimed in the statement of claim, ₪10,000, was the maximum that could be awarded under that head.
• An opinion without testimony: an expert for the purchasers who was not called to testify. The court held that his opinion was not evidence of the truth of its contents, and a claim for loss of value that relied on it was rejected.
• An expense without supporting documents: components not supported by invoices were rejected, while expenses supported by invoices and an affidavit were reimbursed.

The practical lesson: all components, including mental distress and late delivery, should be included in the statement of claim from the start, and if the situation changes during the proceedings, ask to amend it.

Set-off: why was an amount deducted?

When the defendant argues that the purchasers owe it money, such as a balance of the price, or that they have already been compensated for the same damage, the court considers whether to reduce the amount. Such an argument must be detailed and proved.

In Lemel two set-off arguments were rejected: a debt that was not detailed or proved, and compensation the purchasers had received in another proceeding on a different cause of action. The court examined the agreement in the other proceeding and held that there was no double compensation.

Costs and attorney's fees: do they cover the whole expense?

Not necessarily. The court awards costs and fees at its discretion, and the amount does not have to reflect what was actually paid. An appellate court intervenes in this only in exceptional cases (see for example CA (Tel Aviv District) 41745-02-16 Abrahami v. Meshab Housing, Construction and Development Co. Ltd., 25 January 2017).

In Lemel the company was ordered to reimburse the fees of the court-appointed experts as paid, with linkage differentials and interest from the date of payment, plus legal costs of ₪10,000 and attorney's fees of ₪50,000. The court explained what it took into account: the work invested, the ratio between the amount awarded and the amount claimed, and the dismissal of the claim against some of the defendants.

What about defendants against whom the claim was dismissed?

A personal claim against a manager or shareholder of the construction company succeeds only in exceptional circumstances. In Lemel the claim against the manager and a family member was dismissed, and only the company was held liable.

On when the company's owner can be sued personally, see the article compensation in a construction defects claim.

What is special about a settlement given the force of a judgment?

When the proceedings end in a settlement, the judgment gives it effect, and the terms are set out in the agreement: the amount, the payment dates, and sometimes an undertaking to carry out repairs under the expert's supervision.

That is how, for example, the case of three buildings in Rehovot handled by the office ended, CC (Bat Yam Magistrates') 2520-01-17 (14 December 2021): in a settlement given the force of a judgment, under which the building committees undertook to carry out the repairs to the common property according to the court expert's opinion. Details on the construction defects lawyer page.

Table: where to find each component, and what to check

What do you do after the judgment?

Check the payment date that was set. If the defendant does not pay, you can open an enforcement file. Anyone who believes a mistake was made can consider an appeal, within the time limit set by the Civil Procedure Regulations.

Before appealing, remember that an appellate court is reluctant to interfere with findings of fact and with the discretion exercised in awarding costs. On the stages of the proceedings: how a civil case proceeds in court.

Case law and sources

• CC (Herzliya Magistrates') 18563-04-22 Lemel v. V.M.L. Hatzfira Ltd., judgment of 26 August 2025 (Judge Ayelet Harnof).
• CA 7799/01 Salim v. Sharvit.
• CC (Bat Yam Magistrates') 2520-01-17, judgment of 14 December 2021 (a case of the office).
• CA (Tel Aviv District) 41745-02-16 Abrahami v. Meshab Housing, Construction and Development Co. Ltd. (25 January 2017).

The judgments in Lemel and Abrahami were read in full on 8 November 2026. The information is general and does not replace advice on a specific case.

About the author

Amos Ilan is an advocate (licence no. 35320) and notary (licence no. 214444). The office is at 17 Tzahal Street, Ness Ziona, and deals with real estate transactions, construction defects, condominium disputes and civil litigation. Alongside his legal work he has practical knowledge, not based on formal training, of engineering, appraisal and electrical and building systems, and he personally conducts the cross-examination of experts in construction defects cases.