Case Law[2025] ZAGPPHC 563South Africa
Heat It Manufacturing (Pty) Ltd v Michaelides (052785/2025) [2025] ZAGPPHC 563 (22 May 2025)
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Heat It Manufacturing (Pty) Ltd v Michaelides (052785/2025) [2025] ZAGPPHC 563 (22 May 2025)
Heat It Manufacturing (Pty) Ltd v Michaelides (052785/2025) [2025] ZAGPPHC 563 (22 May 2025)
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sino date 22 May 2025
# IN THE HIGH COURT OF
SOUTH AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
CASE
NO
: 052785/2025
DATE
:
08-05-2025
(1) REPORTABLE:
YES / NO.
(2) OF INTEREST TO
OTHER JUDGES: YES / NO.
(3) REVISED.
DATE
SIGNATURE
In
the matter between
HEAT
IT MANUFACTURING (PTY) LTD
Applicant
and
STAVRAKIS MICHAELIDES
Respondent
JUDGMENT
NEUKIRCHER,
J
: This application was
brought as one of urgency and the applicant gave the respondent two
weeks to file an answering
affidavit, which he did.
The
relief sought by the applicant is the following:
1.
That the application be heard as one of
urgency in terms of Rule 6(12).
2.
“
That a
rule
nisi
be issued with return date
determined by the registrar of the honourable
Court when the respondent
may advance reasons why the following order should not be made:
2.1.
That the respondent be ordered to
immediately return the applicant’s drawing described as:
2.1.1.
The complete set of final physical drawings
necessary to enable Heat It to manufacture, machine and produce a
specific product of
high-quality heating systems for the poultry
industry used to heat chicken coops, as well as to heat other
necessary parts.
2.2.
That the respondent be ordered to
immediately after the granting of this order return to the applicant
any electronic storage device
(USB) whereon the aforementioned
drawings are electronically stored or available.
2.3.
That the respondent be prohibited from
using, copying or distributing the applicant’s drawing
described in paragraph 2.1 above
in any way whatsoever.
2.4.
That the respondent be ordered to
immediately upon receiving this order, destroy any copy or record of
the applicant’s drawings
not returned in terms of this order to
the applicant.
2.5.
That paragraphs 2.1 to 2.4 serves as an
interim
order with immediate effect.”
The applicant also seeks
costs on the attorney and client scale including counsel’s fees
on scale C. On an aside on
this issue, if the costs are sought
on an attorney and client scale, the scale of costs becomes
irrelevant.
It appears from the
papers that the respondent was a former employee of the applicant.
He resigned with immediate effect on
1 April 2025.
The bad blood between the
two is clear from the papers and evidenced further by the fact that
the respondent has approached the
CCMA alleging constructive
dismissal from his employment. This is not an issue before this
court and therefore no further
comment is required. The only
import is that it places the events that occurred from 1 April 2025
into context.
The applicant via its
sole director, Mr Vorster, alleges that since the respondent’s
departure, his business has come to a
standstill as the respondent
has taken with him essential drawings that are required to conduct
the applicant’s business.
He also alleges that these
drawings are sensitive and confidential and that the applicant
requires their return.
The applicant
manufactures and produces heating systems for the poultry industry.
These heating systems are used in the poultry
industry to heat
chicken coops and other necessary parts. According to the
applicant it uses physical drawings which are
the “blue prints”
for the production of the heating system, its parts and components:
this allows it to “personalise”
its approach to the
manufacturing and production processes. The drawings are thus
critical to the entire process as these
allow the applicant to
accurately set the laser cutting machines it uses.
Although the respondent
tends to take issue with the ownership of the drawings, that is not a
true dispute on these papers.
It appears that a company known
as PC Building Contractors & Shopfitters (Pty) Ltd (PC Building)
loaned the applicant funds
to produce the original drawings.
After this, the applicant hired draftsmen to tailor the drawings to
its specific requirements
and to improve them.
The point is also that on
1 April 2025 when the respondent abruptly resigned and left the
employ of the applicant, he allegedly
took with him the USB on which
the updated drawings were stored and which was used to operate the
laser cutting machines.
It is not in dispute that
Mr Vorster called the respondent on 1 April 2025 and asked for the
drawings to be returned and the respondent
undertook to leave the USB
at Crawdaddy's at Waterglen Shopping Centre in Menlyn. It
appears that he then did so, however,
according to the applicant the
USB does not contain the updated drawings: it contains the original
drawings. According to
the applicant the drawings developed by
the draftsman over the period of the past year were not contained on
the USB.
The applicant then
informs the court that it employed an expert to inspect the laser
cutting machine. It then became apparent
that the drawings had
been removed and copied onto a USB. There is no confirmatory
affidavit by this expert nor is his name
mentioned in the papers,
thus there is no proof of these allegations.
The applicant states that
when he tried to use the laser cutting machine on 18 April 2025 it
then realised that the settings had
been changed to such an extent
that the machine cannot be operated without first being entirely
reconfigured. As the respondent
was responsible for this
machine and as the issues with the machine arose after he had left
the applicant’s employ, the ineluctable
conclusion is that the
respondent had a hand in all of this.
The respondent states in
his answering affidavit that the application was brought with undue
haste and without thought. No
undertaking was first sought from
him prior to its launch which, although he denies possession of the
material in question, he
states he would have provided. He
states:
“
16
... I have no intention of utilising the applicant’s
information and would for that reason alone have given the applicant
such an undertaking.”
The respondent then
states:
“
19.
The applicant mistakenly infers wrongdoing from the mere fact that
certain electronic files were initially present on
my personal laptop
and WhatsApp messages. The WhatsApp messages for instance had
been legitimately sent to me by Mr Stefan
Venter, the draftsman
working with the applicant in the ordinary course of my duties.
I did not immediately delete them upon
resignation as there was no
reason to do so at the time – I had done nothing wrong.
It was only after the applicant
initiated this unnecessary dispute
and litigation that I deleted these messages.”
And:
“
38.
As detailed above, all drawings and related materials in my
possession were either left at the workplace on 1 April 2025
or
subsequently delivered to the applicant on the same day. At the
time of my resignation the applicant already had access
to its
original USB and could obtain all drawings through its draftsman,
Mr
Stefan Venter. There was no withholding of material on my
part. Moreover, I voluntarily deleted any remaining electronic
copies of drawings from my personal laptop and WhatsApp chats shortly
after this matter arose even though they had been sent to
me in the
ordinary course of business. I am no longer in possession of
any of the applicant’s information – confidential
or
otherwise – and I am willing to confirm this under oath.”
Thus, from the above it
is clear that at the time that the application was issued and served,
the respondent was in possession of
the applicant’s electronic
files on his personal laptop and via WhatsApp messages. It
appears that the application,
thus at least at its initiation, had
merit.
The respondent however
denies possession of the USB and states that he left it at the laser
cutting machine upon his departure on
1 April 2025. As stated,
it does appear as though he was in possession of the drawings sent to
him by the draftsman.
However, the respondent is at pains to
state throughout his affidavit that he has now deleted all the
applicant’s information
and that he has no intention of
competing with or “misusing” any of the applicant’s
information.
These being the facts,
the issue is what relief to grant the applicant. The notice of
motion is stated in too broad terms.
Whilst a
rule nisi
is sought, there is no practical effect to the grant of the relief in
prayers 2.1 and 2.2.
On the basis of the
Plascon Evans
principle, the respondent’s version on the
issue of whether he is still in possession of the disputed material
is not so
untenable that it falls to be rejected. Thus, the
issue is whether the interdict sought in paragraphs 2.3 and 2.4 of
the
notice of motion should be granted.
Although the relief is
framed as an
interim
interdict, it is final in effect.
In my view, on these papers it is clear that the elements of the
interdict have been met.
The applicant has a clear right to the
drawings and the information contained was confidential.
It was certainly not
contested by the respondent that the applicant had made alterations
to the original drawings or that competitors
in the industry would
have had the same information. The balance of convenience
favours the applicant and it would be detrimental
to its business for
the information to be shared or leaked and would allow competitors to
obtain an unfair advantage in the marketplace
were that to happen.
The irreparable harm lies
in the fact that the applicant alleges that it cannot operate its
machines without the drawings.
This it would appear from the
papers is an issue and the drawings would have to be redone by the
draftsman as they were deleted
once forwarded to the respondent who
in turn has now deleted them.
The applicant also stands
to lose contracts and clients if it cannot produce the necessary
industry products. None of this
can adequately be compensated
via a damages claim, which is therefore not a suitable alternative
remedy.
In my view thus
interdictory relief in the terms set out in paragraphs 2.3 and 2.4 of
the notice of motion is justified.
On the issue of costs,
the respondent argued that this entire application could have been
averted had the applicant simply sought
undertakings prior to the
launch of the proceedings. It was argued that the respondent’s
conduct demonstrates that
he had no intention of possessing the
applicant’s information.
The applicant however
argues that it is clear from these papers that the application was
necessary as, on the respondent’s
own version, he was still in
possession of the applicant’s information when the application
was launched.
The argument was further
that it is clear from the notice of motion that what was sought from
the respondent was for him to
inter alia
hand over the
drawings, instead he deleted them. Therefore, his conduct
according to the applicant was not entirely
bona fide
.
In my view, both parties
bear the same blame for this application. Had a proper demand
been sent prior to the launch of proceedings
given the respondent’s
tender, this application may well have been averted. However, the
respondent was well aware of the
fact that the applicant wanted its
drawings returned and why. He not only retained possession of
them until the application
was served on him, but he then deleted
them instead of complying with prayer 1 of the notice of motion.
As I have said, the
notice of motion is also problematic in the manner that it is framed.
All of
this being so, I am of the view that each party must bear their own
costs.
The
order is the following:
1.
The respondent is prohibited from using,
copying or distributing the applicant’s drawings – being
the complete set of
final physical drawings necessary to enable the
applicant to manufacture, machine and produce its products for its
heating systems
for the poultry industry used to heat chicken coops
as well as other necessary parts – in any way whatsoever.
2.
The respondent is ordered to immediately
destroy any copy or record of the applicant’s drawings in his
possession.
3.
Each party shall pay its or his own costs.
NEUKIRCHER, J
JUDGE OF THE HIGH
COURT
Judgement handed
down: 8 May 2025
Transcript
revised: 22 May 2025
sino noindex
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