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Feb 01, 2012

HFN Attains Second Summary Dismissal of a Petition to Certify a Claim as a Class Action

On 8 January 2012, the Jerusalem District Court summarily dismissed an amended petition to certify a claim as a class action against CityPass Ltd. and others in connection with the construction of the Jerusalem Light Railway.

The amended petition was filed following the Court’s 12 May 2011 decision, which summarily dismissed the original petition to certify the claim as a class action, except arguments for environmental nuisance, regarding which the Court permitted the Plaintiffs to file an amended petition. In the amended petition which was subsequently filed, the plaintiffs’ inter alia attempted to include certain issues that were beyond the scope of the limited arguments fixed by the Court’s decision and, in addition, tried to add new arguments that were not present in the original petition and in contravention of the Court’s previous decision. On 5 September 2011, HFN filed on CityPass Ltd.’s behalf a motion to summarily dismiss the amended petition on the grounds that it violated the terms set forth in the Court’s decision.

Judge Gila Knafi Steinitz accepted the application and summarily dismissed the amended petition. In her decision, Judge Knafi Steinitz found that the plaintiffs blatantly disregarded the Court’s order with respect to the following: failing to limit their arguments to “environmental nuisance” as per the terms of the Court’s decision, by including arguments in the amended petition that were already dismissed by the Court; adding new arguments that were not included in the original petition without getting the Court's authorisation; and changing previous arguments that were included in the original petition in order to turn them into arguments for environmental nuisance without getting the Court's permission. Moreover, the Judge found that the plaintiffs acted in “procedural bad faith” in their disregard of the Court’s decision. This second summary dismissal struck out the remaining claims following the first summary dismissal and before any of the remaining claims were heard to their merits.

CityPass Ltd. was represented in the proceedings by Adv. David Zailer, Adv. Roni Libster and Adv. Efri Berkovich, partners in the Litigation and Dispute Resolution department.

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