WILMINGTON—A Delaware judge has refused to dismiss a lawsuit involving a planned luxury resort in Israel.
The complaint was filed by SRL Mondani LLC, seeking repayment of a loan and interest from Modani Spa Resort Ltd. and co-defendants Neil Kaye and Judy Kaye.
SRL lent the defendants $1.5 million to help build the resort. Modani executed a $1.5 million promissory note, and Mr. Kaye and Ms. Kaye signed a personal guarantee promising to repay the loan in the event Modani did not.
The defendants sought to dismiss the complaint, arguing that relevant contracts mandate Israeli jurisdiction and application of Orthodox Jewish law to the dispute. They also said litigating in Delaware would cause extreme hardship.
In a ruling late last week, the judge disagreed, saying Delaware is the proper venue.