Marshalls faces Sh1.2m asset auction

MARSHALLS EAST AFRICA SHAREHOLDERS AT A PAST ANNUAL GENERAL MEETING IN NAIROBI. PHOTO | FILE

Troubled car dealer Marshalls East Africa is fighting attachment of its assets by public relations firm Ogilvy which wants to recover Sh1.2 million it claims arose from the promotion of the 2007 Marshalls Total Motor Show.

Marshalls says it has appealed magistrate Peter Muholi’s decision to award Ogilvy the Sh1.2 million, but that the public relations firm has already lined up assets to be auctioned to recover the disputed award.

“Ogilvy has commenced the execution process and has already proclaimed Marshalls’ movable assets,” the car dealer says.

Ogilvy sued Marshall in 2010 demanding Sh1.2 million, but Marshalls insisted that the stamp appearing on the price estimate documents submitted by Ogilvy did not belong to the car dealer. It also denied knowing the employee whose name appeared on the document, R. Momanyi.

Mr Muholi ruled that Marshalls failed to prove its claims against the stamp and Mr Momanyi while ruling in Ogilvy’s favour.

Justice Joseph Sergon has temporarily stopped Ogilvy from auctioning Marshalls’ assets until the appeal has been heard. Marshalls wants the High Court to rule on whether the estimate can constitute a valid contract between two parties.

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