A. & G. Advanced Systems for Driving Instructors Ltd. v. Bank Leumi of Israel Ltd. Rehovot Branch

Permission for CA 9374/04 (2004)

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A. & G. Advanced Systems for Driving Instructors Ltd. v. Bank Leumi of Israel Ltd. Rehovot Branch

Israel Supreme Court
Permission for CA 9374/04 (2004)

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Facts

A. & G. Advanced Systems for Driving Instructors, Ltd. (A&G) (plaintiff) sued Bank of Leumi Israel Ltd. Rehovot Branch (the bank) (defendant) for the bank’s failure to honor 14 overdrawn checks written by A&G on its account with the bank. A&G claimed that it had an agreement with the bank under which A&G could exceed the overdraft limit, and A&G insisted that the bank’s refusal to honor the checks was a bad-faith attempt to derail a transaction that would require A&G to open an account at another bank. The bank presented evidence that the bank had lowered A&G’s overdraft limit, that A&G was aware that the overdraft limit had been lowered, and that there was no agreement that A&G could exceed the overdraft limit. The district court ruled in favor of the bank, and A&G appealed to the Israel Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Rubenstein, J.)

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