The requirements for adequate security in Lieu of an enrichment Lien

Abstract

Pheiffer v Van Wyk 2015 5 SA 464 (SCA) is a key decision in the South African enrichment law because it satisfactorily and authoritatively deals with the following problematic lien-related aspects: (a) whether a third party can furnish security on behalf of the original owner against the lien holder's or affected party's enrichment or improvement lien claim; (b) whether a court can exercise its discretion by ordering a third party who is not the owner of property to furnish security instead of upholding the impoverished party's improvement lien; (c) whether security rendered by a third party is inadequate and meaningless simply because it was furnished by that third party and not the owner; and (d) whether a court can only exercise its discretion to deprive the lien holder of possession in debtor-creditor lien cases, but not in enrichment cases.