Argument of payment of repair invoice

Helpalwaysneeded

We are a lease company (A)

We leased out a batch of vehicles to our Customer (B)

(B) sublet the vehicles to their customer (C)

(A) & (B) were not aware there was any damage and/or authorised any works to be carried out. 

(C) has taken the vehicles to their repairer for works. (C) already owe a very large sum of money to their repairer. 

(A) has requested the return of the vehicles as they are on lease to (A) from a supplier.  The repairer is holding the vans hostage until (A), (B) or (C) pay. 

Can the repairer do this as they are not (C)'s vehicles to authorise the repairs in the first place and the repairers invoice is made out to (C). 

If (A) do not return the vehicles,  they are at risk of losing further vehicles and business. 

Any advice would be appreciated 

Devongardener

What do your vehicle lease terms and conditions state about sub leasing and responsibility for repairs?  

They are ultimately the property of the company that you lease them from,  I imagine that company will also have clauses about sub leasing, have you breached those by allowing the vehicles to be further sub let twice?
In the end the repairer needs to be paid whoever authorised the work, the legalities of their not releasing the vehicles until they are paid is something you need to establish.  Maybe take some legal advice.

MEM62

It is understandable that the repairer will seek to put a lien on the cars until the repairs are paid for.  It does not look like they will be paid otherwise.   With respect to authorising the repairs, I would expect that, as with all such arrangements, there is an obligation to return the cars in good condition. If there is damage, how do you expect that to happen unless the company that leased them arranges for repairs? This is perfectly normal and does not lend any weight to your argument.  

I would suggest that you not get involved in the argument with the repairer (no point in making this your problem)  but just pursue the company that leased the cars from you for their return.  

born_again

As a business you need to talk to your legal team that drafted the T/C of the lease. Then engage them further to chase for any monies owed. 

eskbanker

Helpalwaysneeded said:

If (A) do not return the vehicles,  they are at risk of losing further vehicles and business. 

What does the contract between A and B say regarding the latter's failure to return vehicles on time, and in good condition, at the end of a lease?

MEM62

eskbanker said:

Helpalwaysneeded said:

If (A) do not return the vehicles,  they are at risk of losing further vehicles and business. 

What does the contract between A and B say regarding the latter's failure to return vehicles on time, and in good condition, at the end of a lease?

Not a lot, apparently  :-)