French Heritage suit against Ethan Allen goes to trial Sept. 3

Importer claims interference with business relationships

Tom Russell -- Furniture Today, August 29, 2008

STAMFORD, Conn. - A business interference lawsuit that case goods manufacturer and importer French Heritage filed against Ethan Allen in May 2004 may soon be resolved.

The case goes to trial here Sept. 3 and is expected to be heard over the next several weeks.

The suit takes Ethan Allen to task for allegedly interfering with French Heritage's business relationships and contracts with Indonesian supplier and joint venture partner PT Alis Jaya Ciptatama.

French Heritage claims it had a 40% equity stake in a related joint venture agreement called PT Alis French Heritage. That arrangement was originally expected to produce $3 million to $4 million in goods each year, according to the suit.

Through this joint venture, which dates back to 2001, French Heritage had an exclusivity agreement with the Indonesian factory regarding the sourcing of various Ethan Allen products.

In its suit, French Heritage claims that Ethan Allen made fraudulent representations to get French Heritage to develop product at the factory.

The suit goes on to say that Ethan Allen ultimately cut French Heritage out of the venture and sourced directly with the factory without its approval. It also claims that Ethan Allen did not provide any compensation for such direct sourcing.

The suit claims Ethan Allen's actions destroyed its business and contractual relationships with PT Alis Jaya and that such actions violate Connecticut's Unfair Trade Practices Act. It seeks an unspecified of actual and punitive damages, including the repayment of attorney fees.

A verdict is expected in late September.

Officials for French Heritage declined comment during the trial process, which begins with jury selection on Sept. 3. Ethan Allen officials also declined to comment at this stage.