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Jun 14, 2011

HFN Attains Summary Dismissal of Petition to Certify a Claim as a Class Action Filed Against CityPass Ltd.

On May 12, 2011, the Jerusalem District Court summarily dismissed a 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 petition that was filed in October 2010 by residents of Jerusalem, sought compensation in excess of NIS 1.2 billion for damages allegedly caused by purported delays in the completion of the light railway project and various disruptions caused by it. In December 2010, HFN filed on CityPass Ltd.’s behalf, a motion to summarily dismiss the petition on the grounds that it did not fall within the Second Addendum to the Class Action Law.

Judge Gila Knafi Steinitz accepted the application and summarily dismissed the petition. The Judge found that there is no dealer-client relationship between the residents of Jerusalem and the defendants and that most of alleged damages cited in the claim do not constitute an “environmental nuisance” as defined in the Prevention of Environmental Nuisances Law. Therefore, the petition did not fall within the framework of the Second Addendum to the Class Action Law. This decision was rendered at an early stage in the proceedings before the claim was heard on its merits. In addition, it substantially limited the plaintiffs’ arguments to several narrow issues.

This case was led by Litigation and Dispute Resolution partners David Zailer and Roni Libster.