FORTUNE+ VIDEO SPONSORED CONTENTS ADVERTORIALS FORTUNE AUDIO Fortune Careers New TRADE AFRICA New

Fortune Logo
The premises of Ghion Hotel, which houses the recently opened Grove Garden Walk park.

A judge at the Federal High Court has ordered an injunction on the ongoing construction of a restaurant and an open-air cinema inside the Ghion Hotel premises in Addis Abeba.

The latest ruling put another turn last week in the legal battle between the Ghion Hotels Enterprise and Das Engineering & Innovation Plc, the latter co-established by a local filmmaker, Tewodros Teshome, along with Surafel Worku.


Das Engineering began the construction on a 5,000sqm of land after winning a bid the Enterprise put out in June 2019. One of two bidders, it was awarded a contract for a 10-year lease with 400,000 Br in monthly rent. Less than a year later, Ghion's management terminated the contract, alleging that Das Engineering had defaulted on its rent for three months beginning March 2020, amounting to 1.75 million Br.

Das began legal proceedings against Ghion Hotels Enterprise at the Federal High Court in February 2021, claiming an unlawful breach of contract. The legal team of Das Engineering argued that the contract between their client and the Hotel included a clause exempting Das from paying rent if construction is halted due to external factors beyond the control of both parties.



The company alleged the six-month state of emergency declared in March 2020 due to the COVID-19 pandemic prevented it from undertaking construction works. Ghion Hotel, which was established in 1951 and sits on a 123,000sqm plot in a prime location of the capital, was used as a quarantine centre shortly after the state of emergency was declared. Lawyers of the plaintiff also blamed the managment of the Enterprise for defaulting on an agreement to let their client host a 12-day expo on the premises in January 2021 after the company issued a four million Birr cheque, which it later blocked.

Ghion's legal representatives pleaded for the suspension of the construction project and appealed to judges to order Das Engineering & Innovation to unblock the cheque. Judges at the High Court ruled that the construction works have no relation to the litigation, and rejected Ghion’s appeal for clearing the cheque.


Ghion's lawyers took the case to the Supreme Court.

Justices at the Supreme Court overturned the High Court's ruling in October this year, allowing Ghion to take the case back to Federal High Court and appeal against the construction project on its premises. Judges at the Federal High Court, second civil bench, presided over the case on December 14, 2021.

Lawyers representing Das Engineering & Innovation, Million Assefa Mersha Law Office, requested an adjournment as some witnesses had not appeared in court. Judge Seble Kinfe, who presided over the case, dismissed Das' request for an adjournment and ordered the company to pay 5,000 Br as compensation of travel expenses witnesses brought by the plaintiff incurred. The Judge also issued an injunction against the construction works on the Hotel premises until the next court date set for January 10, 2022.


PUBLISHED ON Dec 19,2021 [ VOL 22 , NO 1129]

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.



Related Posts

[ssba-buttons]

Put your comments here

N.B: A submit button will appear once you fill out all the required fields.

Editors' Pick

Exclusive Interviews

State Enterprises from Oracles to Apprentices

Dec 22 , 2024 . By TIZITA SHEWAFERAW

Charged with transforming colossal state-owned enterprises into modern and competitiv...

Agenda

Rising Costs, Inflation Threaten Insurance Industry

Aug 18 , 2024 . By AKSAH ITALO

Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...

Agenda

BREWING DISCONTENT

Jul 28 , 2024 . By TIZITA SHEWAFERAW

Unhabitual, perhaps too many, Samuel Gebreyohannes, 38, used to occasionally enjoy a couple of beers at breakfast. However, he recently swit...

Fortune News

Electric Vehicle Push Leaves Investors in the Lurch

Jul 13 , 2024 . By AKSAH ITALO

Investors who rely on tractors, trucks, and field vehicles for commuting, transporting commodities, and f...

Commentaries

Productivity Gains Depend on Bold Firms, Not Broad Reform

Few doubt that productivity growth is good for society. It generally translates into...

War on Malaria Winnable But Africa Needs a Plan to End It

Despite being preventable and curable, malaria has continued to claim African lives....

Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...

When the country’s most. . .

When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...

Editorial

Courting Foreign Buyers of Properties While Land Remains State-Owned

May 31 , 2025

It is seldom flattering to be bracketed with North Korea and Myanmar. Ironically, Eth...

A Country on Life Support Must Not Neglect Its Healers

May 24 , 2025

Public hospitals have fallen eerily quiet lately. Corridors once crowded with patient...

Researchers Churn Out Studies by the Ton. Quality Checks are Causality

May 17 , 2025

Ethiopia pours more than three billion Birr a year into academic research, yet too mu...

Ethiopia's Aid Reckoning Demands a Homegrown Rescue Plan

May 10 , 2025

Federal legislators recently summoned Shiferaw Teklemariam (PhD), head of the Disaste...

Gallery

Parliament Approves New Cabinet Members

Oct 6 , 2021

Parliament Approves New Cabinet, Incorporates Opposition Leaders Lawmakers have approved today the nominations of 22 ministers, including three opposition leaders. Two MPs have voted against, while 12 abstained...

2020 in Posterity

Jan 5 , 2021

TIGRAY VOTES DESPITE "NULL & VOID" THREAT

Sep 9 , 2020

IN-PICTURE: LAUREATE'S RECEPTION  

Dec 14 , 2019

PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize

May 6 , 2019

Faces, Voices of Addis Abeba

Apr 26 , 2019

Sunday With Eden

A Dream Taxed to Death

Six years ago, a dear friend took a leap. He poured his life savings into building a business not for quick profits, but to create something...

The Subtler African Stories Lodged in Luxury

Every family has its ritual, one that bookmarks the year and brings everyone back to center. For ours, it...

Life Matters

The Dangers We Brew

It is unsettling how often news surfaces of everyday household items leading to accidents, some unexpected, others devastating. A recent rep...

Healing the Healers

Reliable information about the recent strike by health professionals in Ethiopia has proven elusive. The public discourse is muddied by sens...