Furniture manufacturer’s assets frozen

An Israeli furniture company’s liquid assets have been frozen by The Federal High Court’s 7th Civil Bench after Hotel owner, Wondwossen Mengistu, sued Perfecto Omega Furniture Plc when  it allegedly failed to deliver and install bedroom furniture.
The defendant’s lawyer argued a capital freeze could harm the company’s business transactions and affect deals with other clients as well as with its own employees.
“If it is necessary the court should freeze fixed assets like machines, not their liquid assets,” Aman Assefa, lawyer for Perfecto Omega said.
But the plaintiff’s lawyer Girma Worku claimed that since the defendant is a foreigner they could move their machinery and capital out of the country.
“We can bring evidence that they are doing this to the court and we then will ask the court to freeze the company’s capital,” Girma said.
Judge Endashaw Hailu accepted the plaintiff’s claim and ordered approximately 7.26 million birr of the furniture company’s capital frozen.  
Wondwossen, a prominent businessman involved in transportation and freight forwarding who owns Nicon Plc and the four star Nazra Hotel, sued Perfecto, claiming the company failed to deliver 32 beds and other furniture to his four star hotel located in the Meskel Flower area.
He produced evidence to the court that he paid 1.56 million birr to Perfecto Omega to produce and deliver 32 beds and other bedroom furniture to Nazra Hotel within 90 days and install it within 21 working days.
Wondwossen claimed he paid the money in two installments but the furniture never arrived.
He is seeking compensation of 7.26 million birr, the estimated amount, plus interest, the hotel would have earned if it had opened on time. He pointed out that he hired over 30 employees based on the expected opening date and that because the furniture never arrived he had to postpone the opening.
In addition, the plaintiff is asking the court to force the defendant to deliver the furniture.
The formal hearing of the case will resume on December 18 with both sides presenting their oral arguments

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