Even
in cases that appear to be doomed from the start, our creative thinking
and understanding of the human mind helps generate significant savings
for our client. In the following case, we went undersea to save our
clients millions of shekels.
When a
construction contractor working for the Tel Aviv Municipality hit one of
the main sewage pipes in the area in August 1998, the damage was
enormous. As sewage flowed to the sea, Tel Aviv beaches were
contaminated with feces and foul smells. At the height of summer
vacation, patrons fled the beaches and beachfront cafes and restaurants.
Business owners soon filed suits demanding extensive damages from the
Municipality, which was insured by our client, “Migdal” insurance
company. “Metzitzim Banamal,” a popular café in the Old Tel Aviv Port
area, sued the Tel Aviv Municipality for 1.13 million shekels.
At
first, Migdal was not sure how to address these law suits, certain that
they represented no more than the tip of the iceberg. Tel Aviv is known
for its lively night life, especially in summer months, and total
damages could top many millions. The company, however, could not justify
its refusal to pay. The contamination occurred in the jurisdiction of
the Tel Aviv Municipality, , the contamination was undoubtedly serious
and had even raised alarms with the Ministry of the Environment. There
seemed to be no doubt that the Municipality was responsible. As a last
resort, “Migdal” hired our services to gather the evidence in
anticipation of a heated legal battle.
Our
investigators starting point was the plaintiffs' alleged loss of
business income immediately after the sewage pipeline was damaged. Our
investigation revealed that the damage to the sewage pipeline caused
contaminated water to flow to the sea, through a pipeline belonging to
the Dan Regional Sewage Association's (DRSA).
However, it became clear that DRSA pipelines are designed to discharge
the sewage in the open sea, far from the shoreline, to prevent pollution
of the beaches. Scuba divers hired by Lior Investigations dived along
the pipeline and photographed it with special equipment to analyze its
condition. They discovered that one metal pipeline
1 meter in diameter, located some 40 meters from
the beach, was seriously damaged by erosion in numerous places. As a
result of the holes in the DRSA pipeline, the sewage flowing to the sea
was released much closer to the shore than it should have been, causing
the foul odors and environmental pollution of the beach area.
Had
all the sewage been transported in these pipes to a distance of
800 meters
from the coastline, as intended, the sewage would have had no effect on
patrons on Tel Aviv seafront businesses, despite the
eruption of the faulty sewage pipe in the Jaffa area. We obtained corroborating testimonies from
leading experts, some representing DRSA, the party at fault!
The chief engineer of environmental
health in the Ministry of Health also confirmed that: “if the pipeline
was longer and the sewage was depleted, we wouldn’t have to close the
beaches so quickly. The pipeline should be
800 meters
long but it is corroded." The district engineer of the government health
agency testified that the sewage leak would have disappeared in the sea
and would have had no effect on the coastline, had the pipeline been
800 meters
long, as it was designed to be.
However, to clear Tel Aviv Municipality of its liability for the
indirect effects of the environmental damage, our office investigated
additional sources. In the course of the investigation, our
investigators discovered that no regular inspections or maintenance
works were performed on the DRSA pipelines leading out to sea. Our
office returned to our clients armed with evidence of this neglect from
DRSA's own General Director.
By
presenting our investigative report in court, Migdal justifiably saved
an enormous amount of money.
It was
clear that through creative thinking and consistent documentation, our
office provided invaluable help to our client, in a claim that appeared
to be doomed at the outset.
