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The locked rear seat backrest is a common (well known) problem on S124s (Ts). It comes from a design flaw from the security pin that signal the release when the rear doors are open.
As far as I understand, it is required to remove the rear side AND rear floor panels to properly fix it.
The local dealer did two of the mentioned jobs on previous 124s I owned as a courtesy. When the lock failed on my E 320 T, they charged labor. As you can see, it is a common problem. It appears that there is a weak link or latch from the system that gets loose and the safety pin on the door post cannot unlock the backrest properly.
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A. Rosich
CL 500, 1998 
S 500 L, 1998 
E 320 T, 1995  [Sadly sold  ]
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