Court Rejects Amos Luzon's Bid to Block Former Mayor in Or Yehuda Project
The Tel Aviv District Court rejected Luzon Ronson's bid to block former Or Yehuda Mayor Yitzhak Buchovza from advising residents on a 744-unit urban renewal project, citing resident autonomy.
Dispute Over Pinui-Binui Project in Or Yehuda
The Tel Aviv District Court has rejected a request by Luzon Ronson, a real estate company controlled by businessman Amos Luzon, for a temporary injunction against Yitzhak Buchovza, the former mayor of Or Yehuda. The developer sought to bar Buchovza from contacting apartment owners and interfering in the company's urban renewal (Pinui-Binui) project in the city.
Luzon Ronson argued that Buchovza was acting in bad faith, assisting a family in opposing the project, meeting with other residents, and collecting power of attorney signatures. The company claimed his actions threatened to disrupt the development of a key section of the project (Complex 1001).
Court Rules in Favor of Resident Autonomy
Judge Noa Grossman rejected the injunction request, stating that the core of the dispute involves ethical issues between attorneys, which should be addressed by the Bar Association rather than the courts. She also noted that the petition was procedurally flawed as it failed to include the residents' legal representatives and the apartment owners themselves.
In her ruling, Judge Grossman wrote:
"I take into account that the residents possess autonomous will, and they have the right to be exposed to a variety of opinions and proposals before granting their consent to any entity."
She added that the principle of freedom of occupation must also be respected. The court gave Luzon Ronson 20 days to decide whether to proceed with the main lawsuit or withdraw it, suggesting they consider taking the matter to the Israel Bar Association.
Background and Financial Stakes
Following the ruling, attorney Yitzhak Buchovza criticized the court for not dismissing the case outright with an award of legal costs. He clarified that his goal is not to harm the project but to maximize the residents' rights, arguing that the compensation terms approved 17 years ago are insufficient compared to the profits Luzon stands to make.
The Or Yehuda project was acquired by Luzon in 2016 as part of his purchase of the A. Dori construction firm. Initially held equally by A. Dori Or Yehuda (50%) and Ella Ezra Investments (50%), the project involves demolishing 128 existing apartments to build 12 towers containing 744 units. In 2023, Luzon bought out Ella Ezra's share for 105.5 million NIS to assume sole control.
Luzon Ronson issued a statement following the decision:
"The Unique Neve Savyon project in Or Yehuda is progressing as planned. Last week, a demolition ceremony was held with the municipality and residents. We regret that there are those acting in bad faith for financial gain at the expense of residents. The company will consider its next steps."
