3. Jackie Line Company won 300,000 NIS for a debt of custom clearance commission and forwarding

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by: gill@nadel-law.co.il
Word Count: 905
Date: Sun, 4 Dec 2011 Time: 8:56 AM

The facts of the case and claims of the parties:
Between the years 2006- 2009 Jackie Line Company provided customs clearance services, shipping and logistic services for a company importing raw materials called Line Bags . In return for their services, Jackie Line received a commission agreed upon in advance.
Avraham and Eliyahu Zebaro are directors in the Line Bags Company.

Jackie Line filed a claim in the amount of 295,000 NIS against the Line Bags Company and its directors, claiming that the company did not pay its debt and that its directors signed a letter of guarantee in which they vouched for the company's debts to Jackie Line.

After the hearing a verdict was handed down which was agreed upon by both parties, against Line Bags, while the remaining dispute was regarding the directors' liability towards the debt to Jackie Line. On the question of the sum of the debt Line Bags and its directors claimed that the debt was only about 160,000 NIS, and brought evidence to support this claim. Jackie Line responded by claiming this to be an old debt and that the rest of the sum is for expenses of storage fees and the transportation of two containers, and presented the accountants books to support this claim.

On the matter of the guarantee for the debt to Jackie Line, the directors of Line Bags claimed that they managed to find a buyer for some of the merchandise for which the debt was demanded, however Jackie Line conditioned the selling of the merchandise an additional signing of a letter of guarantee  - and that this was an unreasonable demand. They further claimed that the sum of the imported goods should be deducted from the existing debt.

The verdict:
 On the matter of the debt, the court decided that all the evidence supported Jackie Line’s claim since the Line Bags company agreed that the verdict be given on the full sum originally requested , and did not present the court with contradicting evidence in regards to the sum of the debt.

On the matter of the letter of guarantee, the court decided that since the goods should have been given to a potential buyer before receiving anything in return, Jackie Line’s request to receive from Line Bags another letter of guarantee that the buyer will pay the price, before allowing the sale, was a reasonable one under the given circumstances, since without asking for such a guarantee it could have found itself involved in another legal procedure  against the buyer, if the money would not have been transferred to it.

On the matter of deducting the sum from the debt owed to Jackie Line on the imported goods, the court decided that such an act was not possible since the goods weren’t yet sold to a buyer, leaving Jackie Line without payment. The court noted that if the goods were sold in the future and the payment was to be transferred to Jackie Line, only then could it be deducted from the debt.

On the matter of the guarantee, the court determined that Mr. Avraham Zebaro knowingly signed the guarantee for the debts of Line Bags and since the company did not pay its debts, he is to pay the debt.

Eventually, the court accepted the claim against Mr. Avraham Zebaro and obliged him with his company’s debt (a sum of about 295,000 NIS) to Jackie Line, in addition to expenses and attorney’s fees – a sum of 20,000 NIS. As for the claim against Mr. Eliyahu Zebaro, it was rejected since he did not sign a similar letter of guarantee.

(C.S.F. (civil short file) (Magistrate Tel Aviv) 174218-09 Jackie Line Logistics Ltd. V. Line Bags and others dated 27/4/11, Judge Atedgi. Advocats for the parties : Jackie Line -  adv. Rotbard, for Line Bags – adv. Hebron)

About the Author

Gill Nadel - Born in Israel in 1969, graduated from Bar Ilan University`s Faculty of Law (cum laude) and from the Department of Musicology. He also has a master`s degree in law from the same institution. Member of the Israel Bar since 1999. Speaks Hebrew, English and Polish. Fields of expertise: Commercial and Business Law, International Trade Law, Import and Export Law, Intellectual Property Law, Maritime and International Forwarding Law, Litigation and Court Representation. Adv. Nadel provides lectures on international trade law and import and export law to in courses organized by the Bar Ilan University Center for Commercial Law, Israel Bar, Israel Chambers of Commerce, Manufacturers Association of Israel, Israel Export Institute, Customs Brokers Association, International Forwarders, and more.

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