When goods or equipment are held in Germany

A return dispute often arises after a business relationship has deteriorated. Goods or equipment may have been sent to Germany for repair, testing, storage, inspection, processing, assembly, trade fair use, project work or temporary use by a German business partner.

As long as the relationship works, possession by the German company may be unproblematic. The dispute begins when the foreign owner requests return and the German company refuses, delays or attaches conditions.

At that point, the issue is not only who physically has the goods. The legal questions are who owns them, why the German company has possession, whether the right to possess has ended and whether the German company can rely on a defence such as a right of retention.

Typical return disputes with German companies

Foreign companies may need legal assistance in Germany in different possession and return scenarios. Typical situations include:

• A German company refuses to return goods owned by a foreign company.
• Machinery, tools, molds or equipment remain with a German business partner after a project has ended.
• Goods were sent to Germany for repair, testing, inspection or processing and are not returned.
• A German company demands payment before releasing goods or equipment.
• The German company claims storage, repair, handling or project costs.
• Prototypes, samples or components are held after the commercial relationship has broken down.
• The foreign owner is concerned that the goods may be used, sold, damaged or moved.

In these cases, the objective may be physical return, preservation of the goods, access for inspection, payment of disputed costs, settlement or court proceedings in Germany.

Ownership is important, but not the only question

A foreign company may say: “These goods are ours. The German company must return them.” That may be correct, but the legal analysis should not stop there.

The decisive issue is often whether the German company has any contractual or legal basis to keep possession. It may claim that return is not yet due, that work has not been paid, that storage costs have accrued or that it has a right of retention until certain claims are satisfied.

The legal position therefore depends on the ownership of the goods, the contract, the reason why the goods were handed over, the stage of the project and the specific reason given for refusing return.

What should be checked first?

Before legal action is taken, the return dispute should be reviewed from a German litigation perspective.

• What goods, machinery, tools or equipment are being held in Germany?
• Can ownership be shown through invoices, serial numbers, contracts or inventory records?
• Why were the items delivered to the German company?
• Was possession temporary, project-related, for repair, storage, testing or processing?
• Has the purpose of possession ended?
• Has return been requested clearly and in writing?
• What reason does the German company give for refusing return?
• Does the German company claim unpaid fees, storage costs or a right of retention?

These questions determine whether the best next step is a German lawyer’s letter, negotiation, preservation measures or court proceedings.

Right of retention and disputed costs

In many return disputes, the German company does not deny that the goods belong to the foreign company. Instead, it argues that it may keep the goods until payment is made.

Such arguments may concern repair costs, storage fees, work performed, project costs, handling charges, transport costs or alleged damages. They must be reviewed carefully. Not every disputed invoice gives a German company the right to withhold goods or equipment.

The question is whether the asserted claim exists, whether it is connected to the goods or the contract, whether it is due and whether it can legally justify refusing return.

Risk of use, damage, sale or disposal

A return dispute can become urgent if there is a risk that the goods may be used, moved, damaged, sold, mixed with other goods or otherwise made unavailable.

This is particularly relevant for machinery, tools, molds, prototypes, samples, spare parts, customer-specific goods or items that are difficult to replace. The foreign owner may need not only return, but also preservation of the current condition and confirmation that the items will not be disposed of.

The practical response depends on the urgency, the evidence, the value of the goods and the German company’s conduct.

German lawyer’s letter before litigation

In many return disputes, a German lawyer’s letter is a sensible first step. The German company may assume that the foreign owner will hesitate to enforce its rights locally in Germany, especially if the goods are already in the German company’s possession.

A proper lawyer’s letter should identify the goods, explain the ownership and possession situation, request return within a clear timeframe and address any asserted right of retention or disputed costs. It should also make clear that legal action in Germany is a realistic next step.

When court proceedings may be necessary

If the German company still refuses return, court proceedings may become necessary. The type of action depends on the objective: return of the goods, access, preservation, payment-related clarification or damages caused by wrongful retention.

In some cases, urgency may play a role, especially where there is a risk that the goods will be moved, sold, damaged or otherwise made unavailable. In other cases, a normal court action may be the appropriate route.

The decision should be based on the value of the goods, the strength of the ownership documents, the German company’s asserted defence, urgency and enforcement prospects.

Can a foreign owner sue in Germany?

In many return disputes, legal action in Germany is possible because the goods are located in Germany, the German company is based in Germany or the contractual relationship is connected to Germany.

Whether Germany is the right forum must be checked in the individual case. This is especially important where the parties agreed jurisdiction clauses, choice-of-law clauses, repair terms, storage terms, project contracts or German general terms and conditions.

For the broader claimant overview, see: Sue a German Company from Abroad.

Do you need to travel to Germany?

In many return disputes, foreign owners do not need to travel to Germany at the beginning of the matter. The case can often be assessed through contracts, invoices, delivery documents, serial numbers, photos, shipping records, repair correspondence and written communication.

Personal attendance may become relevant in individual cases, especially if inspection, witness evidence or technical evidence is important. But the initial assessment, lawyer’s letter and many procedural steps can usually be handled through a German litigation lawyer.

More on this practical issue: Sue in Germany Without Travelling.

Cost risk and commercial sense

Not every return dispute should become a lawsuit. The value of the goods, urgency, replacement cost, business impact, evidence of ownership and the German company’s defence must justify the effort.

A defined lawyer’s letter may be a useful first step where the ownership position appears strong and a serious local demand may lead to return or settlement. Litigation may be necessary where the German company continues to refuse return or where the goods are at risk.

More on the broader commercial assessment: Is It Worth Suing a German Company in Germany?.

How I assist foreign owners

I assist foreign businesses and foreign clients with commercially relevant return disputes involving goods, machinery, tools, molds, prototypes and equipment located in Germany.

• Assessment of ownership, possession and return documents
• Review of contracts, repair terms, storage terms and project documents
• Evaluation of alleged retention rights and disputed costs
• Assessment of urgency, preservation issues and commercial risk
• Preparation of a German lawyer’s letter
• Negotiation and settlement strategy
• Representation before German courts where litigation is justified

The aim is to determine whether the dispute should be resolved by return demand, negotiation, settlement, preservation measures or court proceedings in Germany.

When you should seek legal advice in Germany

You should consider involving a German litigation lawyer if a German company refuses to return goods, machinery, tools, molds, prototypes, spare parts or other equipment owned by your company.

This is particularly useful if the goods are commercially valuable, urgently needed, difficult to replace, at risk of being used or moved, or if the German company claims a right of retention based on disputed costs.