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MBRs face mounting storage challenges following landmark court ruling

Aug 08, 2025 Juan Hanekom, South African Motor Body Repairers’ Association (SAMBRA).


MBRs face mounting storage challenges following landmark court ruling

 

What now for unsold stock and uncollected vehicles in motor body repair shops? Motor body repairers across South Africa are grappling with a growing dilemma - how to legally and practically dispose of vehicles and parts occupying valuable workshop space, following a recent High Court ruling that has dramatically reshaped the industry’s approach to liens and storage rights.

 

In the case of Nedbank Ltd v Salvage Genie & Others (Case No. 2023-074260), the Court handed down a decision that has far-reaching consequences for how repairers may retain vehicles and recover costs for unpaid work or storage. The key outcome? Salvage or enrichment liens, commonly relied upon by MBRs, can no longer be sold, transferred, or ceded to third parties. In short, businesses that were previously able to “take over” a lien in exchange for paying a repairer’s outstanding invoice can no longer do so. The judgment ruled such practices as unlawful.

 

“This ruling makes it clear that only the original party who lawfully took possession of a vehicle and incurred the associated costs - whether for repairs, towing or storage - has the legal right to retain that vehicle under a lien,” explains Juan Hanekom, National Director of the South African Motor Body Repairers’ Association (SAMBRA). “This means that once you lose that possession, or once the debt is settled or disputed, your right of retention ends.”

 

Hanekom says this creates three problematic implications for the sector. “Firstly storage fees can no longer accrue indefinitely; secondly third-party salvage solutions are now off the table and thirdly, vehicles left abandoned or unpaid for cannot easily be removed from the premises without legal risk.” SAMBRA members are now left asking: What do we do with uncollected vehicles or parts that are tying up space and draining cash flow?

 

Hanekom says the ruling reaffirms the legal position that a vehicle may be withheld only if the repairer lawfully took it in, incurred costs, and has not been paid; storage may be charged reasonably, but not indefinitely and no lien rights may be transferred to another party. He stresses that this does not negate a repairer’s right to be paid, but does require that compensation follow correct legal channels. “MBRs must now tighten their administrative processes, ensure proper authorisation before commencing work, and seek legal advice when a payment dispute arises. It’s also time to have serious discussions about legislative solutions or alternatives for abandoned vehicle disposal.”

 

SAMBRA is currently engaging with the RMI legal team and broader industry stakeholders to develop clearer guidelines and potential support mechanisms for MBRs navigating this increasingly complex legal terrain. “Repairers are running businesses, not storage facilities,” concludes Hanekom. “Without a legal mechanism to clear out stock or reclaim workshop space, we risk creating a financial and operational logjam in the sector. We’re actively exploring how other markets manage this issue and will keep our members informed.”

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