Uri Shani today won a partial victory against his former boss, Arcadi Gaydamak at the Tel Aviv District Court. The court imposed a temporary attachment on Gaydamak's shares in Ocif Investments and Development Ltd. (TASE: OCIF) up to a value of NIS 9.8 million, or on the sale of the shares up to this amount.
The court ruled that Shani presented prima facie evidence in support of his claim. However, because he delayed in filing his petition and because the value of Gaydamak's shares in Ocif that are due to be transferred to a trustee have fallen from NIS 31 million to NIS 9.8 million, the court issued the attachment on the latter amount.
Shani resigned as CEO from Arison Holdings Ltd. subsidiary Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE: HUCN) to take up a post as manager of Gaydamak's business in Israel.
When Shani came to work for Gaydamak, Gaydamak was supposed to deposit in a trust account Ocif shares worth a net NIS 50 million to secure Shani's contract. Gaydamak deposited only NIS 19 million, and Shani therefore asked for an attachment on the balance of NIS 31 million when his job with Gaydamak fell through.
Gaydamak said in his statement of response that Shani had been hired as a long-term manager, but quit after only a few months after making several dubious transactions that harmed the company.
Judge Avi Zamir said that Shani presented prime facie evidence in support in support of his claim in that his contract stipulated that Gaydamak would deposit shares with a trustee that would guarantee Shani's contractual terms. "This is an unambiguous commitment that cannot be misinterpreted, and is unconditional," he said.
Published by Globes [online], Israel business news - www.globes-online.com - on September 25, 2008
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