PA signals readiness to pay terror damages

Negotiations are underway for a settlement of bus company Egged's claim against the Palestinian Authority.

Sources inform "Globes" that the Palestinian Authority is negotiating a compromise with Israeli bus company Egged. Egged sued the Authority in 2002 over its responsibility for the many terrorist attacks on buses, which caused Egged loss of revenue.

This is the first time that the Palestinian Authority has engaged in negotiations on a settlement in a suit filed against it for its responsibility for terror attacks. Three months ago, the file was handed over for mediation before Israel Bar Association chairman Adv. Yori Geiron. Both Egged and the Palestinian Authority believe the lawsuit will end in compromise. The parties are currently discussing the amount of the settlement. It is estimated that the Palestinian Authority will pay, "without admitting the claims" up to NIS 30 million, in return for withdrawl of the suit. The original claim was for NIS 52 million, a sum that has grown to an estimated NIS 70 million.

If a settlement is reached, it will be submitted to Palestinian Prime Minister Salam Fayyad for approval.

Egged has already been compensated by the Israeli government for damage to buses and for half the loss of revenue caused by the terrorist attacks. It sued the Palestinian Authority and its then head, Yasser Arafat, for the other half, claiming that, during the second Palestinian intifada, every terrorist attack further deterred the public from travelling on buses.

Arafat did not file a statement of defense, and Egged obtained a personal judgment against him, but has so far refrained from enforcing it overseas and seizing his bank accounts and other assets. Egged did obtain an attachment order on Palestinian Authority funds in Israeli hands, but agreed to remove it after the state undertook to meet any sum that the Authority might be obliged to pay.

Over 55 personal injury and property claims have been filed against the Palestinian Authority in different courts, citing the Authority's responsibility for terrorist attacks. The claims amount to hundreds of millions of shekels. The expected settlement of Egged's claim will have no legal consequence for the other suits, but it is likely to generate pressure on the Palestinian Authority to compromise in those suits as well.

Published by Globes [online], Israel business news - www.globes.co.il - on December 29, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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