Civil Appeal 4651-02-17 Perepadia: order for guarantor to pay Mizrahi Tefahot NIS 175,000 set aside
According to the database headline, the District Court set aside the order requiring a guarantor to pay the bank NIS 175,000, which had been awarded against her in the Haifa Magistrates' Court.
What this page is based on
The details here are based on the visible part of the judgment on the Psakdin website. The site shows only the opening of the judgment, and does not show the reasoning or the full outcome without a subscription. The outcome appears on the site in the headline of a related article: "District Court cancels order for guarantor to pay bank NIS 175,000". We did not find the full text openly online.
Background and facts in Civil Appeal 4651-02-17 Perepadia v. Mizrahi Tefahot Bank
The judgment was given on July 5, 2017 in the Haifa District Court, sitting as a court of civil appeals. The panel: Senior Judge Yigal Griel, and Judges B. Tauber and S. Jiusi. The appellant is Ludmila Perepadia, represented by Adv. Leonid Rubinov. The respondent is Mizrahi Tefahot Bank, represented by the firm Schindelheim & Co.
The appeal was filed against a judgment of the Haifa Magistrates' Court of January 2, 2017. There the bank's claim was allowed, and the appellant was ordered to pay NIS 175,000 plus linkage differentials and interest from the date the claim was filed.
According to the facts described in the opening of the judgment, on June 27, 1999 the appellant, together with another person, signed a deed of guarantee. The guarantee secured a loan with a principal of NIS 345,000 that a couple of borrowers took from the bank.
In 2002 the borrowers requested an arrangement because of their financial situation, and the arrangement was approved. When they did not keep to it, the bank called the loan for immediate repayment and began to enforce against the mortgaged property. At the end of 2007 the property was sold by a receiver for NIS 110,000. According to the bank, on December 6, 2007 redemption letters were sent to the borrowers and the guarantors.
In 2010 the bank sued the borrowers and obtained a judgment against them. Collection through the Execution Office did not succeed, and in November 2013 a decision was given on the exhaustion of proceedings against them. According to the bank's version, in 2011 and 2012 it sent the guarantors a letter on joining the proceedings and a notice of the motion for exhaustion of proceedings.
In January 2014 the bank sued the appellant and the other guarantor. According to the bank, the debt stood at NIS 621,998 as of June 2011, but for court fee reasons the claim was set at NIS 350,000.
Quotes from the decision
On 6.12.07, according to the respondent, redemption letters were sent to the borrowers and the guarantors, and at the end of 2007 the property was sold by a receiver for the sum of NIS 110,000.
The judgment, section B, as shown on the Psakdin website (translated from Hebrew).
What is known about the outcome
According to the headline of the related article on the Psakdin website, the District Court cancelled the order requiring the guarantor to pay the bank NIS 175,000. The reasoning does not appear in the visible part, and so we do not set it out here.
What it means for Mizrahi Tefahot customers
The case shows that a bank may sue a guarantor many years after the guarantee was signed, and after it has exhausted proceedings against the borrowers. A guarantor who is sued can ask the bank for the letters it claims were sent to him, and check whether and when he received them. Another Supreme Court judgment on the bank's duties toward a guarantor: Civil Appeal 4525/09 Shaarei Shamayim.
Sources
Frequently asked questions about court rulings against Mizrahi Tefahot Bank
What was decided in Civil Appeal 4651-02-17 Perepadia v. Mizrahi Tefahot Bank?
According to a headline on the Psakdin website, the Haifa District Court cancelled the order requiring the guarantor to pay the bank NIS 175,000, which had been awarded against her in the Haifa Magistrates' Court. The reasoning does not appear in the visible part of the judgment.
When was the guarantee signed and what did it secure?
According to the judgment, the guarantee was signed on June 27, 1999 and secured a loan with a principal of NIS 345,000 that a couple of borrowers took from the bank.
How much did the bank claim from the guarantor?
According to the bank, the debt stood at NIS 621,998 as of June 2011, but the claim was set at NIS 350,000 for court fee reasons. The Magistrates' Court ordered the guarantor to pay NIS 175,000.
The full text was not found openly online; details according to a report, not yet verified against the text of the decision
How to cite
Civil Appeal 4651-02-17 (Ludmila Perepadia v. Mizrahi Tefahot Bank), Haifa District Court (civil appeal), 05.07.2017. Source: Net HaMishpat (Israeli courts database), case Civil Appeal 4651-02-17 (Ludmila Perepadia v. Mizrahi Tefahot Bank).
Read also
Civil Appeal 4525/09 Shaarei Shamayim: Supreme Court voids a guarantee because Mizrahi Tefahot did not tell the guarantor the borrowers were in arrears
The Supreme Court partly allowed a guarantor's appeal and held that her guarantee for the second loan and the second mortgage on her apartment are void, because the bank did not disclose to her that the borrowers were …
- Court
- Supreme Court
- Topic
- guarantors and guarantees
Mother signed as a borrower on her daughter's mortgage: Bank Tefahot's claim to evict her from her apartment rejected
The court rejected Bank Tefahot's claim to evict a mother from her apartment, and held that having her sign as an "additional borrower" on her daughter's mortgage was a fiction intended to circumvent the protections of …
- Court
- Tel Aviv District Court
- Topic
- guarantors and guarantees