A purchase at Furniture City Design City in Fresno led to a small-claims lawsuit against the retailer that illustrates the problems created by the pandemic and shaky supply chains. Photo via Google Street View

An unusual small claims case concluded in Fresno County Superior Court recently, the product of a dispute between a local television news anchor and business owner who said the pandemic upended his operations.

Alexan Balekian, KSEE 24 news anchor and host of weekly political show Sunday Morning Matters, filed a claim against Furniture City near Blackstone and Barstow avenues on Jan. 19.

Balekian said Furniture City owner Fawzi Saed owed him $4,192 from a breach of contract related to a furniture purchase gone bad.

After reviewing evidence and witness testimony, Judge Bob Whalen decided to award Balekian $2,652 plus $50 in court costs earlier this month. The amount represents the value of a high-end bookcase and dining room chair that arrived at Balekian’s home damaged. He rejected those items on delivery.

The dispute included allegations of threats and harassment on both sides and illustrated the fallout for businesses from supply chain issues related to the Covid-19 pandemic.

The trial concluded with the two parties shaking hands. Balekian declined to comment for this story. In an interview with The Business Journal, Saed said he was glad it was over.

“I’m not running a scam. I’m not running a fraud,” Saed said during the trial. “This is my livelihood business.”

The disagreement began on Jan. 29, 2022, when Balekian and his fiancée purchased bookcases and dining chairs from Furniture City Design Studio, the retailer’s high-end location. Furniture City had previously advertised with Balekian’s employer, television station KSEE 24.

The sales contract stated that the furniture would arrive at Balekian’s home in a 6-8 week window. Balekian said after attempting to gain more information about his delayed furniture by telephone, he returned to Furniture City on April 24, 2022, where Balekian said he and his fiancée were harassed by Anthony Halim, a Furniture City manager and part owner.

Balekian said Halim yelled and acted aggressively. A former Furniture City employee testified that Balekian had threatened him over the phone — a claim Balekian said was false. Halim said that’s what prompted him to act in defense of his employee when Balekian arrived at the store.

Charges were made against his credit financing months before the furniture was delivered June 13, Balekian said, adding that a bookcase and chair arrived damaged.

Balekian said his experience with Furniture City and Halim was “extremely uncomfortable.”

“This company is not serious about customer service,” Balekian said at the trial.

Saed said he spends $10,000-$15,000 a month on customer service at Furniture City. Efforts to ensure satisfied customers were pushed to the brink by the pandemic, he said, as supply chains crumbled and consumer goods – including furniture – sat unloaded on cargo ships at California ports.

Before the pandemic, furniture orders could arrive from the manufacturer in a matter of days. After the pandemic, it could take as long as a year.

“It’s a supply chain issue,” Saed said. “Out of our hands.”

The delays resulted in negative reviews for the business on platforms including the Better Business Bureau website and Yelp.

Saed acknowledged the bad reviews, but said they represented a small fraction out of thousands of customers.

“Some of the reviews are fake,” he said. “It’s all due to delays.”

“All the people you make happy, they don’t write reviews,” he added.

Judge Whalen said the pandemic resulted in consumers taking their disputes to small-claims court. He said he has even held judgements against suppliers.

Whalen ruled that while Furniture City’s delivery quote at the time was 6-8 weeks on its sales contracts, it also included a clause that delays are not grounds for canceling an order.

Blair Looney, president and CEO of the BBB Serving Central California & Inland Empire Counties, said an offer to mediate this matter was declined. The organization encourages its accredited companies and consumers lodging complaints to use the mediation process for an outcome that can benefit both parties.

Once such a matter appears before a judge in court, it gums up an already burdened system – and the outcome is less nuanced.

“Once you get in front of a black robe, they only see black and white,” Looney said. “One hundred percent or zero.”

Looney’s advice to consumers is to pay attention to the contracts they are signing.

The furniture retail industry is also subject to more complaints compared to all other business categories, Looney said. Nationally, furniture is No. 10 of all categories for the number of complaints lodged with the BBB. In the local BBB district that includes the Central Valley, it is No. 7.

From March 2022 to March of this year, Furniture City had 24 customer complaints reported to the BBB.

“That’s not very much,” Looney said. “About two a month out of all their transactions.”

Furniture City has been accredited by the BBB since the business started in 2009. As such, it received a grade from the BBB for its reputation. Based on the number of complaints, the BBB accreditation system assigned it a “B” grade.

Looney added that there is nothing misleading about Furniture City’s sales contracts, per a review by BBB attorneys.

“The business has been doing their best to take care of the issues,” Looney said.

Saed said this is only the second time in 16 years in the furniture business that he has had to appear in small-claims court because of a dissatisfied customer.

He said the supply chain issues have improved — “not 100%, maybe 90% back,” he said.

The bottom line, Saed said, is that Furniture City attempts to respond to complaints about deliveries and customer complaints — something Looney with the BBB confirmed by looking at the company’s record.

“We don’t want mad customers,” he said.