Legal Question in Credit and Debt Law in United Kingdom
unclaimed cars
I run an accident repair garage and have 2 vehicles on site that we were askes to repair by a rental company that has gone out of business. These cars were leased to the rental company by a leasing co. and I have been in touch with them regarding payment of the repairs and storage. They are saying that I have to claim on the company that is no onger trading, and that they wish to come and take the cars back. Have I any legal right to hold on to the vehicles until a satisfactory payment has been received. I would have thought that the lease company have some obligation as the cars actually belong to them.
1 Answer from Attorneys
Re: unclaimed cars
A strict reply to your question would be that your entitlement to payment will depend upon the contract you made with the now-defunct rental company. That said it is highly arguable that this contract contained a term, either express or implied, that you should have a lien (legal charge) over the vehicles until such time as all your charges are paid. This will provide for the right for you to hold on to the vehicles(and charge storage) until you are paid.
You should most certainly not give into this leasing company and I can almost guarantee that they will back down and pay your charges as the most commercial way to resolve matters.
Let me know if I can help you further in this
Andrew Dutton
www.legal-zone.co.uk K.
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