L’Oreal SA (Pty) Ltd v Kilpatrick and Another (J1990/2014) [2014] ZALCJHB 353; (2015) ILJ 2617 (LC) (16.09.2014) per S Snyman AJ
It is unlikely that anyone foresaw the spurt of employer applications in the Labour Court to enforce restraint of trade and confidentiality agreements signed during employment. Section 77(3) of the Basic Conditions of Employment Act provides that “The Labour Court has concurrent jurisdiction with the civil courts to hear and determine any matter concerning a contract of employment, irrespective of whether any basic condition of employment constitutes a term of that contract”. Since 2010 alone the Labour Court has decided 25 such cases, with 10 in this year alone (2014). Only 6 out of the 25 judgments have been reported, although all of them are available online, courtesy of Saflii. Details and links to the unreported judgments delivered in the last 6 months are now provided to assist practitioners.
Heard: 9 September 2014 Delivered: 16 September 2014
Summary: Restraint of trade – principles stated – application of principles to matter – issue of protectable interest, infringement of such interest and the weighing off of interests of the parties considered
Restraint of trade – nature of confidential information – evidence of infringement of confidential information – employee shown to have access to confidential information
Practice and procedure – requirement to make out case in founding affidavit – issue of determining factual disputes in restraint applications
Interdict – issue of clear right – repudiation of restraint agreement by employer – principles of repudiation considered – no repudiation shown – employee in any event cannot rely on breach of agreement where employee himself already in breach
Interdict – proper protectable interest and infringement of such interest shown – balance of convenience favouring the employer – interdict granted
FMW Admin Services CC v Stander (J2126/2014) [2014] ZALCJHB 354 (16.09.2014) per Snyman AJ
Heard: 11 September 2014 Delivered: 16 September 2014
Summary: Restraint of trade – principles stated – application of principles to matter – issue of protectable interest and public interest considered
Restraint of trade – nature of confidential information – no evidence of employees having confidential information – no protectable interest with regard to confidential information shown
Restraint of trade – nature of customer connections – no protectable interest with regard to customer connections shown – business of applicant contrary to public interest
Practice and procedure – requirement to make out case in founding affidavit – issue of determining factual disputes in restraint applications
Interdict – no protectable interest shown – business of applicant contrary to public interest – interdict refused
Masjienburo Bka v Van Wyk(C 719/14) [2014] ZALCCT 45 (8.09.2014) per Steenkamp J
Verhoor: 28 Augustus 2014 Uitspraak: 8 September 2014
Opsomming: Handelsbeperking – dringende aansoek om werknemer te verhoed om diens te aanvaar by mededinger – beginsels uiteengesit – uitleg van ooreenkoms.
Bevel
[68] Ek maak dus die volgende bevel:
68.1 Die eerste respondent, Mnr van Wyk, word verbied om vir ‘n typerk van 12 maande vanaf 1 September 2014, en in die gebied aangedui as aanhangsel “B” tot die gewysigde kennisgewing van mosie:
68.1.1 ‘n onderneming in mededinging met die applikant, Masjienburo BK, te stig;
68.1.2 vir tweede respondent (Breedenet) of ‘n ander mededingende onderneming te werk; of
68.1.3 ‘n aandeel of belang in Breedenet of ‘n ander mededingende onderneming te hê.
68.2 Die tweede respondent, Breedenet, word verbied om die eerste respondent, Van Wyk, in diens te neem vir ‘n tydperk van 12 maande vanaf 1 September 2014 en in die gebied aangedui as “B”.
68.3 Die respondente word gelas om die applikant se koste gesamentlik en afsonderlik te betaal.
Care for Cars CC v Rabe (J1744/14) [2014] ZALCJHB 295 (6.08.2014) per AJ Steenkamp J
Heard: 25 July 2014 Delivered: 6 August 2014
Summary: Restraint of trade (urgent interdict)
JMG & Sons Trucking Components (Pty) Ltd v Brabson(J1575/12) [2014] ZALCJHB 283 (28.07.2014) per Lagrange J
Heard: 10 July 2014 Delivered: 28 July 2014
Summary: (Restraint of trade– customer connections and pricing information as a protectable interest –limited interest established– balancing of interests justifies significant variation of the restraint).
Business Connexion (Pty) Ltd v Petrus (J981/2014) [2014] ZALCJHB 209 (11.06.2014) per H Rabkin-Naicker J
Date heard: May 20 2014 Delivered: June 11 2014
Summary: Urgent applications for interdictory relief iro restraint of trade agreements.
ARB Electrical Wholesalers (Pty) Ltd v Grove (C335/14) [2014] ZALCCT 31 (3.06.2014) per Steenkamp J
Heard: 30 May 2014 Delivered: 3 June 2014
Summary: Restraint of trade.
New Justfun Group (Pty) Ltd v Turner (J786/14) [2014] ZALCJHB 177 (14.05.2014) per Van Niekerk J
Heard: 9 May 2014 Judgment delivered: 14 May 2014
3. The First Respondent is interdicted and restrained during the restraint period, whether directly or indirectly, for reward or not, from:-
3.1. encouraging, enticing, inciting, persuading or inducing any other employee of the Applicant, who was in the Applicant employ whilst the first Respondent was in the Applicant’s employ, and who was or is engaged or participates in the sale or other marketing by the Applicant of the prescribed goods, or in any material respect in the rendering or in the marketing of the prescribed services, to terminate his or her employment by the Applicant; and/or
3.2. furnishing any information or advice to any employee of Applicant or to any prospective employer of any such employee or use any other means which are directly or indirectly designed, or in the ordinary course of events calculated, to result in any such employee terminating his employment by the Applicant and/or becoming employed by or directly or indirectly in any way interested in any or associated with any other company, close corporation, firm, undertaking or concern;
3.3. furnishing any information or advice (whether oral or written) to any prescribed customer, or using any other means, or taking any other action which is directly or indirectly designed, in the ordinary course of events calculated, to result in any such prescribed customer terminating his association with the Applicant and/or transferring his business to or purchasing any prescribed goods or competing goods or accepting the rendering of prescribed services or competing services from any person other than the Applicant, or attempting to do so.