High Court extends injunction granted to Rathwood in dispute over stored furniture

The High Court has continued an injunction obtained by the Rathwood home and garden furniture firm restraining a warehouse company from disposing of furniture the retailer says is held for its benefit. Rathwood Home and Garden World Ltd says its ownership of the furniture was part of a successful examinership process from which the company recently exited.It obtained an interim injunction last week restraining Carlow Warehousing Ltd from disposing of the goods.Rathwood is also bringing proceedings against a Chinese firm, Paleo Furniture Company Ltd, which maintains that the stock stored in the warehouse belongs to it and disputes that it has given up its rights to the property. READ MOREIt has not consented to the removal of the stock from Carlow Warehousing. Rathwood argues the goods should be returned to it. Paleo was one of the two creditors who presented the petition earlier this year, leading to the appointment of an examiner to Rathwood. Last week, the court also approved an application for service of the Rathwood injunction proceedings on Paleo outside the jurisdiction.The court has been informed that Paleo was owed €2.8 million as an unsecured creditor and also had retention-of-title status in relation to a debt of €258,000 which had to be claimed within 14 days of the appointment of the examiner. No application was made, says Rathwood, and the retention-of-title debt became part of unsecured creditor debt.When the case returned to court on Thursday, Arthur Cunningham, barrister for Rathwood, said counsel for Paleo had contacted him to say he would be representing the company at the adjourned hearing. However, following the circulation by Rathwood’s lawyers of directions on how the injunction matter should proceed to trial as soon as possible, the Paleo counsel said he would not now be appearing for the firm.Cunningham said his client was anxious to secure the stored furniture in time for the spring season.Stephen Moran, barrister for Carlow Warehousing, said he wanted to deliver a replying affidavit to Rathwood, but in the meantime had no objection to the injunction continuing and being subject to what Paleo might say. Carlow Warehousing has said it will comply with any High Court order in relation to the stock.Judge Brian Cregan approved directions for the hearing against Carlow Warehousing, but said he would not do so against Paleo because it had not put in an appearance in the case. He adjourned the case for five weeks with the injunction against Carlow Warehousing to continue.