Date: Sene 28, 2009 E.C.
Key Legal Interpretation:
Pursuant to Article 42(1) of Proclamation No. 361/2003, when a jurisdictional conflict arises between Addis Ababa City Courts and Federal Courts, the matter shall be decided by the Federal Supreme Court. Although the jurisdiction to decide disputes arising over houses owned by the City Administration is given to the City Court, justiciable matters such as the fate of a contract of sale of a business enterprise must be seen in accordance with the right guaranteed under Article 37(1) of the Constitution.
Cassation Court’s Reasoning:
The dispute concerns a contract of sale of a business enterprise conducted on a house administered by the Addis Ababa City Administration. Although it is a procedural irregularity for the lower court to lift and decide on a file it had initially dismissed by a ruling for lack of jurisdiction without it being reversed on appeal, the main issue is resolving the jurisdictional conflict. After examining the arguments of both parties, the decision rendered stating that the Federal First Instance Court has judicial jurisdiction pursuant to Article 5(6) of Proclamation No. 25/1996 is given in accordance with the law.
Decision:
The decision rendered by the Federal Supreme Court Appellate Division stating that the Federal First Instance Court has judicial jurisdiction over the disputed matter is affirmed pursuant to Article 348(1) of the Civil Procedure Code.