High court ruling in favour of M & F ruling

Judgement in the Mutual & Federal High Court action against SAMBRA (South African Motor Body Repairers Association), SATRA (South African Towing and Recovery Association) and SAMBRA national director Richard Green was handed down on Friday, 7 December 2007.

The judgement interdicts and restrains SAMBRA, SATRA and Richard Green from compelling, persuading, encouraging or advising any of the Mutual & Federal contracted motor repairers to perform certain acts that may be in violation of the company’s Motor Repairers agreement. SAMBRA and SATRA were ordered to pay all legal costs incurred by Mutual & Federal. SAMBRA, SATRA, and Richard Green have however filed a notice of application for leave to appeal.

Mutual & Federal Managing Director Keith Kennedy said: “The ruling means that the previous interim court order obtained in August, which severely constrained the three parties from engaging in a number of unlawful activities, has now become permanent, unless application for leave to appeal is granted, which we are advised is unlikely to succeed.

“We are pleased with the outcome. Our steadfast approach of allowing the due process of the law to resolve the dispute has been vindicated. Our efforts will now be focused on strengthening our relationships with motor repairers, intermediaries, customers and motor manufacturers.”

Kennedy said the insurer would now continue to review its panel of preferred repairers and was already in the process of signing contracts with selected suppliers. Selection criteria will include BEE status, adequate national representation and the inclusion of manufacturer-approved repairers to whom work can be directed to preserve the integrity of a manufacturer’s warranty.