Real estate8/30/2026

Court Postpones Sde Dov Compound Lottery Due to PFAS Contamination

The Herzliya Magistrate’s Court ordered that, at this stage, the lottery allocating landowners’ rights among the compounds in Sde Dov not be held. The court ruled that, in the absence of data on the extent of the PFAS contamination, the duration of the remediation and its cost, the allocation of rights worth billions of shekels could be unequal.

Key facts

•Court: Herzliya Magistrate’s Court
•The case number was not specified in the original source
•The lottery was temporarily postponed
•Israel Land Authority update — by October 6, 2026
•The rights are valued at billions of shekels
•Adam Teva V’Din’s petition was filed in 2022

The Dispute Between the Landowners and the Administrators

Some of the landowners, represented by attorney Doron Kochavi, asked to wait for the results of the contamination tests. The administrators of the Large Block in Tel Aviv insisted on proceeding with the process. As part of the dissolution of co-ownership, thousands of private rights holders are expected to receive rights in three compounds, corresponding to approximately 818, 1,483 and 202 housing units.

Why the Court Halted the Process

The court noted that the lottery could have proceeded had the extent of the contamination, the duration of the treatment and the remediation costs been similar across the different compounds. However, no such factual data were presented to the court. The differences may affect the value of the compounds and the appraisal coefficients, and therefore a lottery based on the current metrics could lead to an unequal allocation.

The Decision Is Not Yet Final

The prohibition applies at the current stage: new information about the contamination could lead to a different decision. The Israel Land Authority announced interim funding for the continuation of the tests; the testing plans are awaiting approval from the Ministry of Environmental Protection. The court ordered the authority to submit a detailed update by October 6, 2026.

Separate High Court of Justice Proceeding

The Adam Teva V’Din organization opposes the High Court of Justice’s recommendation to strike out its 2022 petition against the Ministry of Environmental Protection, the Ministry of Health and the Water Authority. The organization demands that the regulation of PFAS treatment be completed and argues that the required regulations have not yet been enacted. According to state data, contamination is suspected at 35 sites, contamination has been confirmed at 12 of them, and 18 drinking-water wells were disqualified due to PFAS concentrations exceeding permitted levels.

What this means for you

For the rights holders in Sde Dov, the allocation among the compounds is postponed until clearer data are obtained regarding the contamination and the potential remediation costs. The decision does not permanently cancel the lottery, but it requires environmental risks to be taken into account if they affect the value of the plots differently. Separately, the High Court of Justice must still decide the fate of the petition concerning PFAS regulation.

Find a lawyer for this topic

Case analysis based on court rulings