Has your hired equipment been abandoned by the hiree, and can you get it back?
This article was published in the Hire and Rental Industry Magazine February 2025, pages 28 - 30
If a hiree or lessee leaves your equipment on a third party’s premises at the end of the hire or rental, can you just go and collect it on proving ownership?
Not necessarily. The owner of the premises may be entitled to require you to pay storage and other expenses depending on the State or Territory in which the equipment is located.
This article demonstrates complexities arising from legislative variances in uncollected goods laws between Australian States and Territories by reference to the hypothetical factual scenario provided below.
Scenario
An equipment rental company (Owner) hires storage containers valued at $20,000 to a company (Hiree) under a commercial hire agreement. The Hiree keeps the storage containers on land leased from a third party (Landlord).
The Hiree becomes insolvent and is placed in liquidation. It defaults under both the hire agreement and the lease.
The Owner terminates the hire agreement and becomes entitled to possession of the storage containers.
The Landlord terminates the lease. On termination of the lease the Hiree is obliged to vacate the premises and remove all goods and fixtures it brought onto the Premises. It fails to remove the storage containers.
The Owner demands access to recover the storage containers. In response, the Landlord demands payment of compensation for storing the abandoned storage containers as a precondition to handing them over.
The resolution of these competing claims would ultimately vary depending on the provisions of the applicable legislation in each Australian jurisdiction.
Legislative Provisions
| State/Territory | Summary of provisions |
| NSW | The Owner has 28 days from receipt of notice from the Landlord to collect the equipment. Thereafter the Landlord can sell the equipment and deduct the reasonable costs of storage and actual costs of maintenance, insurance and disposal. |
| VIC | The Owner has 28 days from receipt of notice from the Landlord to collect the equipment, or a power of sale arises. The Owner must pay the Landlord for the reasonable charges of storage, maintenance and insurance. |
| QLD | The Owner has 6 months from receipt of notice from the Landlord to collect the equipment, or a power of sale arises. The Owner must pay the Landlord for the reasonable charges of storage, but the Landlord must obtain an order from the Court if it wants to charge more than $110. |
| WA | The Owner has 6 months from receipt of notice from the Landlord to collect the equipment, or the Landlord may apply to the Court for an order for sale or disposal, including reasonable costs of storage, insurance and disposal. |
| SA | The Owner has 42 days from receipt of notice from the Landlord to collect the equipment, or the Landlord may apply to the Court for an order for sale or disposal. Thereafter the Owner must pay the reasonable cost of the application to the Court and reasonable costs of storage and maintenance. |
| NT | The Owner must pay the Landlord for the reasonable charges of storage, maintenance and insurance. The Landlord must apply to the Court for an order to dispose of the equipment. |
| ACT | The Owner has 7 days from receipt of notice from the Landlord to collect the equipment, or a power of sale after 3 months arises. The Owner must pay the Landlord for the reasonable costs of storage, maintenance and complying with the legislation. |
Conclusion
Specific advice should be obtained in relation to the applicable statutory provisions governing the particular circumstances when equipment on hire is abandoned on premises owned by a third party.
The effect of the legislation in the table is just a summary and relates only to the scenario described in this article. Different provisions might apply if, for example, the equipment is of a different value.
The authors would be happy to assist if you should encounter this situation.
Authors: David Creais, David de Mestre and Angelina Gorgovski