Court hits the brakes: Mercedes repossesses R1.6m GLE after owner’s 6-year legal joyride

The North Gauteng High Court has ordered that Mercedes-Benz can repossess a 2016 Mercedes-Benz GLE 63 S AMG valued at over R1.6 million after its owner defaulted on payments and ignored a settlement agreement.

The six-year battle over the car was not straightforward. Leruma Thobejane, who represented himself in court while fully robed, alleged that Mercedes-Benz “had fraudulently approached the court for the issuing of a warrant for delivery of the vehicle in September 2023, whilst being fully aware that that matter was on appeal before the Supreme Court of Appeal”.

In the order, the judge found that “in my view the warrant was issued in terms of the court order, and not in breach thereof”.

The court noted that Thobejane had failed to meet his payment obligations. “The respondent however did not dispute the allegations in the applicant’s attorney’s affidavit that he breached the settlement order, and that he did not make the required payments in terms thereof,” the ruling stated.

The judge added: “The applicant has already been waiting for payment in terms of the settlement agreement since September 30, 2021, and the respondent remains in possession of the vehicle. In my view relief that the applicant is entitled to, should not further be frustrated by reason the applicant’s attorney’s reliance on an incorrect subrule.”

Thobejane was partially successful in having a previous warrant of execution set aside. However, ultimately, the court authorised Mercedes-Benz to repossess the vehicle under its latest ruling.

The dispute dates back to 2019, when Mercedes-Benz Finance instituted proceedings against Thobejane after he defaulted on payments for the vehicle. The credit agreement stipulated ownership would remain with Mercedes-Benz Finance until full payment was made. It also provided that, in the event of default, the company could cancel the agreement, repossess the vehicle, and claim any shortfall after resale.

Despite demands, Thobejane fell into arrears, owing more than R1.36m by the time summons were issued. After litigation and discovery, the parties reached a settlement in August 2021, which was made an order of court in March 2023.

The settlement agreement required Thobejane to make five consecutive monthly payments totalling R1.5m plus interest and costs. It included a clause that if he breached the payment terms, the full outstanding balance would immediately become due, and Mercedes-Benz Finance could apply for judgment and repossession – rights to which Thobejane consented.

IOL