Construction company Neot HaPisga Modiin Illit Ltd filed a mammoth lawsuit for damages Wednesday against the state, for damages incurred as a result of the government's November decision to freeze construction in Judea and Samaria, as well as a previous freeze order issued by the local IDF commander. The firm is demanding NIS 171 million in compensation.

The company was in the process of building 2,300 housing units in Modiin Illit, a Hareidi-religious city in the Binyamin region, as well as buildings for offices and commerce, when the construction was frozen. The firm's owners claimed that the state is responsible for the damages they suffered and that it must compensate them.

The company's activities in Modiin Illit came to a standstill in May 2009, when the IDF regional commander issued a temporary construction freeze order in order to enable the military to plan a new route for the security fence. This was made necessary by a High Court ruling in favor of Arabs from the village of Bilin who said that the fence – which was built to prevent Arab suicide bombers from entering Israel – cut into their land without justification.       

The IDF commander's temporary freeze order in Modiin was followed by the government's November decision on a ten-month freeze on construction throughout Judea and Samaria, undertaken as a result of United States pressure. The firm claims that the freeze orders damaged it financially – because it had undertaken obligations vis-a-vis home buyers, banks, suppliers and bond holders – and also hurt its public image.