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Client Updates
 

May 14, 2015

Client Update: Supreme Court Ruling regarding the Grounds for Restitution with respect to the Collection of Payments Without Authority

The Real Estate Department's Municpal Taxation Division has issued a client update regarding the issue of restitution in the case where a governmental authority collected payments from the citizen without the authority to do so. According to the Supreme Court's decision dated 14 April 2015 (Additional discussion 7398/09 Jerusalem Municipality v Clalit Health Services), before an expanded panel of judges, it was held, among other things, that a separate and independent restitution cause should be recognized in the case where the public authority has collected funds from the citizen without authority, and based upon the unjust enrichment law. It was also determined that the administrative authority that collected funds without authority, may be exempted from restitution (full or partial) arising from the  "budgetary defense", provided that the authority will present and establish proper and adequate evidence with respect to the budgetary damage.

For the full client update, click here.

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