Vehicle storage

[Debra]

Hi, I have a query from my partner:

"I went into an agreement to build a motor vehicle for a client. The agreed price was R395 000-00 with a 50% deposit. In May 2012, a small payment was made towards the 50% deposit. We then waited a year and four months for the next two small payments. Altogether three payment were made but did not total the 50% deposit.
In the meantime we had already begun building the vehicle. Up until October 2013 we had still not received the full 50% deposit.

Can I charge this person storage fees? The total days of storage is 1017 days up until 31st May 2016.
I have been told I can charge R250-00 per day as prescribed by the Motor Industry."

Thank you very much.

[AndyD]

I'm a bit confused about the timeline. So the full 50% deposit was finally received in October 2013? If so I assume you then completed the work and are actually waiting for the final settlement of the remaining 50%?

[Debra]

Sorry Andy, I didn't explain myself very well.

No, to date the full 50% of R197 500-00 has still not yet been received; only a portion of R172 100-00 has been paid to me.
We stopped building the car in September 2013 and received further payments on 30th September 2013 and the last payment on 17th October 2013.
On the 17th October 2013 I was told not to continue the build, that the client would collect the incomplete vehicle the following week which he never did. He has since been trying to claim both his money back and the incomplete vehicle.

Am I able to charge him storage from the 17th October 2013 until today?
I am told that the Motor Industry has laid down a rate of R250 per day. Do I have to notify the client that I am going to charge him a storage fee? We have a notice in our workshop stating that a vehicle storage fee of R250 will be charged per day.

Thank you for any help you can give me.

[sterne.law@gmail.com]

Yes, you can claim storage.
He cant get the car and money.
He can get car - although you can hold it in lieu of rental.

[Debra]

Hi Anthony

Thank you very much for your reply. I appreciate your advice, it has been most helpful.