Israeli Civil Court Reverses Rabbinical Court's Enforcement of Illegal Contract

Haaretz today reports on a decision by an Israeli district court in Tel Aviv taking the unusual step of reversing a decision of a rabbinical court as being in violation of public policy. At issue is an illegal agreement between two Haredi (strictly-Orthodox) real estate developers.  When the Jewish Agency invited tenders for the purchase of a parcel of land in downtown Jerusalem, developer Avraham Tzeinwirt agreed to pay developer Aharon Eisenberg $1.15 million in exchange for Eisenberg withdrawing from the bidding. Tzeinwirt won the bid, but then refused to pay Eisenberg. Eisenberg took the matter to an Orthodox rabbinical court (Badatz) in Bnai Brak. The rabbinical court, headed by Rabbi Nissim Karelitz ordered Tzeinwirt to pay. Unhappy with the result, Tzeinwirt appealed to a civil court which found that the developers' agreement was designed to defraud both the Jewish Agency and tax authorities. The entire deal has now been canceled and the judge sent a copy of her ruling to the Jewish Agency, the attorney general, the Justice Ministry and the Antitrust Authority for them to consider the possibility of criminal charges. [Thanks to Joel Katz (Relig. & State in Israel) for the lead.]