Case Law[2024] ZAGPPHC 1358South Africa
OHM Electrical Wholesalers (Pty) Ltd v Van Eeden and Another (121736/2023) [2024] ZAGPPHC 1358 (27 December 2024)
High Court of South Africa (Gauteng Division, Pretoria)
27 December 2024
Headnotes
that: “the test of a reasonable apprehension is an objective one and is based on the view of a reasonable person confronted with the facts”
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## OHM Electrical Wholesalers (Pty) Ltd v Van Eeden and Another (121736/2023) [2024] ZAGPPHC 1358 (27 December 2024)
OHM Electrical Wholesalers (Pty) Ltd v Van Eeden and Another (121736/2023) [2024] ZAGPPHC 1358 (27 December 2024)
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FLYNOTES:
CIVIL PROCEDURE – Anton
Piller order –
Unlawful
competition –
Former
employee – Illegal activities conducted by respondents
during tenure with applicant – Violated contractual,
statutory, and common law obligations – Absence of any
evidence from respondents demonstrating violation of rights
through the order – Application made to preserve evidence –
Substantive cause of action – Respondent engaging
in
unlawful competition with applicant – Interim order
confirmed.
# IN THE HIGH COURT OF
SOUTH AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
# GAUTENG DIVISION,
PRETORIA
GAUTENG DIVISION,
PRETORIA
## CASE
NUMBER: 121736/2023
CASE
NUMBER: 121736/2023
## DATE:
27 DECEMBER 2024
DATE:
27 DECEMBER 2024
(1)
REPORTABLE:
YES/NO
(2)
OF
INTEREST TO OTHER JUDGES: YES/NO
(3)
REVISED
YES
In
the matter between
OHM
ELECTRICAL WHOLESALERS (PTY) LTD
APPLICANT
And
RYNO
ARNOLD VAN EEDEN
FIRST
RESPONDENT RVE
ELECTRICAL
(PTY) LTD
SECOND
RESPONDENT
JUDGMENT
MATSEMELA AJ
INTRODUCTION
[1] This is an opposed
Anton Piller application wherein the applicant seeks that the rule
nisi issued on the 24th of November 2023
be made final.
ANTON PILLER ORDERS IN
GENERAL
[2] The conceptualization
of Anton Pillar proceedings found its definitive expression in an
English legal precedent of 1975, wherein
the term itself was coined.
This landmark case,
Anton Piller KG v Manufacturing Processes
Ltd and Others,
[1975] EWCA Civ 12
,
[1976] 1All ER 779
(8 December
1975)
saw Lord Denning articulating the nature of such
proceeding in the following manner: ’
Let me say at once
that no court in this land has any power to issue a search warrant to
enter a man’s house so as to see
if there are papers or
documents there which are of an incriminating nature, whether libels
or infringement of copyright or anything
else of the kind. No
constable or bailiff can knock at the door and demand entry so as to
inspect papers or document. The householder
can shut the door in his
face and say, ‘Get out.’… None of us would wish to
whittle down that principle in the
slightest. But the order sought in
this case is not a search warrant. It does not authorise the
plaintiffs’ solicitors or
anyone else to enter the defendant’s
premises against his will. It does not authorise the breaking down of
any doors, nor
the slipping in by any back door, nor getting in by an
open door or window. It only authorises entry and inspection by the
permission
of the defendant. The plaintiff must get the defendant’s
permission. But it does do this: it brings pressure on the defendant
to give permission. it does more. it actually orders him to give
permission—with, I suppose, the result that if he does not
give
permission, he is guilty of contempt of court.’’
[3] The legal precedent
established in the case of
Universal City Studios Inc v Network
Video (Pty) Ltd
[1986] ZASCA 3
;
[1986] (2) SA 734
(A)
delineates the
prima facie prerequisites inherent in an applicant’s ex parte
founding papers for an Anton Piller application.
This specialized
legal remedy, crafted to address contemporary challenges in the
adjudication of commercial disputes, mandates
that:
3.1 A valid cause of
action must be substantiated against the respondent(s), coupled with
a demonstrable intent to pursue such a
cause of action;
3.2 The respondent(s)
must be in possession of documents or articles crucial to the
substantiation of the applicant’s cause
of action;
3.3 A genuine and
well-founded concern must exist regarding the potential concealment,
destruction, or surreptitious removal of
evidence by the time
discovery procedures are initiated or the case proceeds to trial. The
Supreme Court of Appeal, in the decision
of
Viziya Corporation
v Collaborit Holdings (Pty)
Ltd and Others
2019 (3) SA
173
(SCA)
at para 45 held that: “
the test of a
reasonable apprehension is an objective one and is based on the view
of a reasonable person confronted with the facts”
[4] The profound nature
of Anton Piller-type application is such that the, courts bear the
responsibility to safeguard against undue
encroachments upon the
fundamental rights of respondents recognizing the far-reaching
ramifications inherent in legal genus.
[5] The limited purpose
of an Anton Piller order has most recently been confirmed by
theConstitutional Court in
Mkhatshwa v Mkhatshwa
2021 (5) SA
447
(CC)
at para 1 as being to allow: “
for the
search of premises for crucial documentation or material for purposes
of preserving important evidence for litigation, so
that the
documentation or material may be removed and safely kept, pending the
ordinary discovery process and trial.”
[6] To uphold this
principle, courts enforce stringent procedural prerequisites prior to
the issuance of any ex parte interim order.
These requirements
include:
6.1 The Ex parte order:
This instruction must be intricately detailed, providing explicit
instructions to the Sheriff of the High
Court for the execution of
the attachment.
6.2 Explanatory Note: An
accompanying document to any ex parte interim order, the explanatory
note delineates the nature and scope
of the application and interim
order. It also underscores the respondent’s specific rights,
including the right to legal
representation.
6.3 Appointment of a
supervising attorney: An independent legal representative distinct
from the applicant’s attorney of record
is designated to
oversee the attachment process with the Sheriff of the High Court.
His/her role is to ensure strict compliance
with the order, and the
details are recorded in an affidavit deposed to by the supervising
attorney and filed in the matter.
6.4 Balance of
probabilities: On the return date of the rule nisi, following the
respondent’s opportunity to submit its response
to the founding
papers, the court evaluates the matter based on the balance of
probabilities. This assessment considers the facts
presented during
the ex parte hearing and scrutinizes whether the execution of the ex
parte hearing has unduly infringed upon the
respondent’s
rights.
[7]
The duty of this Court is to consider
that
the aforementioned requirements have been diligently fulfilled by the
applicant, consequently warranting the granting of the
order sought.
[8] The Court‘s
consideration of an order’s appropriateness underlines the
importance of exploring feasible alternatives,
however, it is
imperative to note that this is not an absolute prerequisite for the
remedy.
[9]
The subsequent confirmation of requirements in
Shoba
v Officer Commanding Temporary Police Camp Wagendrift
Dam and Another
;
Maphanga v
Officer
Commanding,
South African Police Murder and Robbery Unit
,
Pietermaritzburg
,
and
Others,1995 (4) SA I (A)
at
15 G-1
clarified
that “vital evidence’’ in the
Universal
City Studios (Universal City Studios Inc v Network Video (Pty) Ltd
[1986] ZASCA 3
;
1986 (2) SA 734
(A))
,
context denotes evidence crucial to the applicant’s case rather
than being strictly essential or absolutely necessary, which
would
overly burden the applicant in proving its claim.
[10] In
Non-Detonating
Solutions (Pty) (Lt d) v Durie
2016 (3) SA 445
(SCA)
at para
21 the SCA emphasised that a prima facie cause of action only
necessitates evidence that, if accepted, would establish
such a cause
of action.
[11] The
Shoba
case
further elucidated that the term “specific documents or things”
in the second threshold requirement includes both
specified items and
specific classes of items, provided the terms are appropriately
delimited.
[12] The SCA, and
subsequent cases like
Viziya
(supra), emphasised the
importance of practicality and precision in orders involving the
imaging and searching of electronically
stored information, ensuring
that the searches are targeted and avoid accessing none specified
information as much as possible.
[13] This includes
prohibiting searches where specified items are not likely to be found
and employing search methodologies that
minimize exposure to
non-specified information.
BACKGROUND
[14] The events leading
up to these issues are largely undisputed, with only a few instances
where the respondents seemingly attempt
to dispute the facts,
however, it may be appropriate to outline the factual background to
provide the context to the issue.
[15] The first respondent
has been employed with the applicant in various positions since 2016,
until the resignation at the end
of 2023. At the time of his
resignation, he held the position of general manager at the applicant
and has minority shareholding
in the company.
[16] This dual role not
only establishes contractual obligation but also statutory duties,
thereby assigning fiduciary responsibilities
to the first respondent.
The question is whether the evidence will show if these obligations
have been breached to his and the
second respondent’s advantage
and to the detriment of the applicant.
ISSUES
[17] Issues to be
determined in the application are the following:
17.1 Whether the
applicant has complied with the condition contained in the Anton
Piller order that action be instituted within
one month from the date
of grant of the Anton Piller order;
17.2 If not, whether this
non-compliance resulted in the automatic discharge of the Anton
Piller and the rule issued in terms thereof,
in which case the
respondents will seek an order confirming the discharge of the Anton
Piller together with a punitive order as
to costs, without the need
to consider the merits of the application;
17.3 If not, whether the
respondents’ further opposing affidavit (delivered on the 3rd
of September 2024) should be allowed.
The applicant delivered a reply
to the said affidavit on the 4th of September 2024, conditional on
the Court accepting the further
opposing affidavit of the
respondents.
17.4 Whether the rule
nisi supra should be made final. In other words, whether the
applicant has made out a proper case for the
Anton Piller application
to be granted and has complied with the interim order granted on the
24th of November 2023.
WHETHER THE APPLICANT
ESTABLISHED A PRIMA FACIE CASE
[18] The use of Anton
Piller orders in our law is now well-established. The requirement
that must be satisfied for the granting
of such an order were summed
up by
Corbertt JA in
Universal City Studios Inc v
Network Video (Pty) Ltd
[1986] ZASCA 3
;
1986 (2) SA 734
(A)
Page 42
,
as follows: ‘
In a case where the applicant can establish
prima facie that he has a cause of action against the respondent
which he intends to
pursue, that the respondent has in his possession
specific documents or things which constitute vital evidence in
substantiation of the applicant’s cause of action (but in
respect of which the applicant can claim no real or personal right)
that there is real and well-founded apprehension that this evidence
may be hidden or destroy or in some manner spirited away by
the time
the case come to trial, or at any rate to the stage of discovery, and
the applicant ask the court to make an order designed
to preserve the
evidence in some way…’
[19]
While it must be acknowledged that Anton Piller orders have the
potential to impact negatively on the right to privacy guaranteed
in
S 14 of the
Constitution,
there are necessary and proportionate
to the legitimate aim pursued. Whatever harm or inconvenience might
be cause to the respondent
can be attenuated by the inherent
principle of proportionality which requires a balancing of competing
interests and values. This
resonates with what Chaskalson P stated in
S v
Makwanyana and Another (CCT
3/94)
[1995] ZACC 3
,
that the limitation of constitutional right for a purpose that is
reasonable and necessary in a democratic society involves the
weighing up of competing values and ultimately an assessment based on
proportionality.
[20]
Thus Corbett JA in
Universal
City
supra
recognized that in exercising its discretion
whether or not to grant
an Anton Piller order, the court must pay regard to inter alia, the
cogency of the prima facie case established,
the ‘potential
harm that will be suffered by the respondent if the remedy is granted
as compared with, or balanced against
the potential harm to the
applicant if the remedy granted.’ This balancing of interests
is particularly crucial on reconsideration
of the interim order on
the return day when the court adjudicating the application has been
furnished with all the relevant evidence
including the respondent’s
opposing affidavit, as happened in this case. Thus, court must
constantly be wary that the refusal
to grant an Anton Piller order
could, in a deserving case, result in a denial of justice.
[21]
In
Detonating case
supra para 21 Under the heading
‘Prima facie cause of action the SCA held as follows;
The
requirement of a prima facie cause of action is simply that an
applicant should how no more than that there is evidence which,
if
accepted, will establish a cause of action. In
Bradbury
Greforex &Co (Colonial) Ltd vStandard Trading Co (Pty) Ltd
.
Steyn J, said the following; the requirement of a prima facie cause
of action is satisfied where there is evidence which, if accepted,
will show a cause of action. The mere fact that such evidence is
contradicted would not disentitle the applicant to the remedy.Even
where the probabilities are against him, the requirement would still
be satisfied. It is only where it is quite clear that he has
no
action, or cannot succeed, that an attachment should be refused or
discharged on the ground here in question.
[22] In support of his
application the applicant attached four handwritten affidavits, of
its employees, to the founding affidavit.
The said affidavits were
deposed to by:
22.1 Mr Elvis Vilakazi;
22.2 Mr Siphiwe Vilakazi;
22.3 Joseph Ledwaba;
22.4 Kabelo Malembi;
[23] In summary, Mr Elvis
Vilakazi stated that:
23.1 The First Respondent
takes “two invoices” to clients of OHM Electrical and one
invoice is from OHM and the other
one is from Second Respondent,
which quotes a lessor price than the OHM price.
23.2 That the Frist
Respondent offered him a R10 000, 00 monthly salary if he would “come
to work for RVE”;
23.3 That during OHM
time, he takes us to the sites of RVE Electrical;
23.4 That First
Respondent was utilising the Applicant’s tools;
[24] In summary, Siphiwe
Vilakazi stated that:
24.1That the First
Respondent was using the Applicant’s “car” to do
his quotes;
24.2
That when the First Respondent was sent to do OHM quotes, he would
give clients two quotes to choose, between the Applicant
and the
Second Respondent
;
24.3 Most of the time
when they attended OHM quotes sites the First respondent was “bad
mouthing” the OHM company;
24.4 The first Respondent
was always using the Applicant’s tools on the Second
Respondent’s sites;
24.5 Some of the jobs
were done during “OHM time”;
24.6 The First Respondent
was trying to convince him to work for the Second Respondent and
leave OHM, by promising him (Vilakazi)
a better salary than what he
received at OHM.
24.7
Most of the quotations were done by Van Eeden on OHM time
;
[25] In summary, Mr
Joseph Ledwaba stated that:
25.1 During weekends, Van
Eeden would call him (Ledwaba) to come and work. He (Van Eeden) would
tell him (Ledwaba) not to mention
it to anyone at especially “our
boss and the staff that sit at the shop”;
25.2 The First Respondent
used take left over spares to use for his private jobs;
25.3 The First Respondent
took a lot of tools to his house and used it for his jobs;
25.3 The First Respondent
“gives clients different quotes”;
25.4 The First Respondent
cuts the prices down so that his quote (RVA) seems cheaper;
25.5 The First Respondent
used the company vehicle after work, to do private jobs;
25.6 When he (Ledwaba)
worked for the First Respondent, they would use the applicant’s
tools for private jobs on weekends;
25.7 When Ledwaba worked
for the First Respondent, he (the First Respondent) would talk bad
about the boss (Thomas) inter alia saying
that he (Thomas) robbed him
money.
25.8 He (First
Respondent) said that he want to leave OHM, and want to take all the
clients.
25.9 When he (Ledwaba)
refused to work for the First Respondent, he (the First Respondent)
got angry and started to say that Ledwaba
is stealing and he started
to give Ledwaba an attitude at work, threatening that he (Ledwaba)
could get fired.
[26] In summary, Kabelo
Malembi stated that:
26.1 He (Malembi) has
seen the First Respondent giving quotations to his clients (in the
name of the Second Respondent) and to some
clients of the Applicant.
26.2 The he (Malembi) was
called to work on weekends and if you don’t show, you are
promised to be dismissed from the company.
26.3 That sometimes when
they were supposed to go home from the Applicant, the First
Respondent would take them to his jobs to work.”
[27] In reply to the
above, the Respondents inter alia pleaded that:
27.1 I have noted the
content of this paragraph. Save to deny that I and/or RVE acted in
unlawful competition with the applicant,
the remainder of these
allegations do not fall within my personal knowledge and I am
therefore unable to admit or deny same.
27.2 I admit the content
of this paragraph. There was no duty on me to disclose the
operations and/or
business operation of RVE to the Applicant. I am not subject to any
restraint of trade in my erstwhile employment
agreement. The Second
Respondent does not unlawfully compete with the Applicant.
27.3 Nothing prevents RVE
from competing with the applicant. It is not unlawfully competing
with the applicant.
27.4 I was not, in
addition prohibited in any way from establishing RVE for that
purpose.
27.5 The contents of
these paragraphs are denied. During my working hours at the applicant
I only worked for and attended to the
Applicant’s instructions.
27.6 On weekends. Mr
Elvis Vilakazi, Kabelo Malembi, Siphiwe Vilakazi and Joseph Ledwaba
(the deponents to the affidavits attached
to Mr Acker’s
affidavit), they were not under contractual duty and /or obligation
at the Applicant, assisted in their free
time at RVE. According to
them, they were not receiving sufficient remuneration at the
Applicant and were in monitory need and
distress. There was no
coercion from my side, nor was any coercion necessary.
[28] In answer and reply
to the ‘affidavits’ of the four employees mentioned
above, the
Respondents pleaded as
follows:
28.1 Nothing prevents RVE
from competing with the Applicant. It is not unlawfully competing
with the Applicant.
28.2 I was not, in
addition prohibited in any way from establishing RVE for that
purpose.
28.3The contents of these
paragraphs are denied. During my working hours at applicant, I only
worked for and attended to the applicant’s
instructions.
28.4 On weekends, Mr
Elvis Vilikazi, Kabelo Malembi, Siphiwe Vilikazi and Joseph Ledwaba
(the deponents to the affidavits attached
to Mr Acker’s
affidavit), after they were not under contractual duty and/or
obligation at the Applicant, assisted in their
free time at RVE.
According to them, they were not receiving sufficient remuneration at
the Applicant and were in monitory need
and distress. There was no
coercion from my side, nor was any coercion necessary.”
[29] In answer and reply
to the ‘affidavits’ of the four employees mentioned
above, the Respondents pleaded as follows:
29.1 The content of the
“alleged affidavits” attached as annexure “R14”
to “R17” to the Applicant’s
founding affidavit is
illegible and unreadable. I am therefore, unable to respond thereto.
29.2 Reserve my rights to
respond to the content of these affidavits at a later stage once I
have been provided with legible copies.
[30] Counsel for the
applicant argued that ‘better’ copies of the said
affidavits were already uploaded onto case lines
on 24 November 2023.
The respondents have to date, not pleaded to any measure of detail,
to the various allegations recorded in
the 4 affidavits.
Consequently, the very serious allegations recorded in the said
affidavits, remain largely uncontested. I agree.
[31] It is my view that
the content of the said affidavits, read with the remainder of the
allegations recorded in the founding
papers, materially substantiates
a prima facie case against the Respondents.
[32] Also, it is not
disputed, that by 9 February 2024, the Applicant served a Particulars
of Claim, which embodied
the following allegations:
32.1 In addition to the
expressed terms of the said agreement recorded in annexure “POC1”
hereto, the agreement further
comprised of the implied,
alternatively, tacitly terms stating that:
32.2 The first respondent
shall owe various common law fiduciary duties
towards the plaintiff as
his (first defendant’s) employer, including the duty
not to use the
plaintiff’s confidential information against the plaintiff, to
the benefit of the first defendant and to the
detriment of the
plaintiff.
[33] As a result of the
first defendant’s employment and shareholding in the plaintiff
business, the first
defendant has acquired a comprehensive understanding of various
aspects of the plaintiff’s business, including
the complete
scope of its operations, client details, the business requirements of
its clients, the business model, marketing strategy,
pricing
structure and quoting model.”
[34] Also, under the
heading “Unlawful competition”, the Applicant (cited as
Plaintiff)
nter alia pleaded as
follows:
34.1 The first defendant
did not, at any point, reveal the registration of the second
defendant to the plaintiff or its directors.
Furthermore, the first
defendant did not disclose the operations and business model of the
second defendant at any stage to the
plaintiff.
34.2 The approach taken
by the first defendant involved presenting clients and suppliers with
two quotes– one from the plaintiff
and another from the second
defendant. The latter consistently featured significantly lower
prices than the plaintiff’s quotation/s.
[35] The first defendant
knew or ought to have known that:
35.1 The scope of the
plaintiff’s operations, clients details, the business
requirements of its clients, the business model,
marketing strategy,
pricing structure and quoting model, the identities of its suppliers,
the pricing structure/agreement between
the plaintiff and its
suppliers, the identities of the plaintiff’s current and formal
employees and shareholders, and the
overall terms of employment for
the plaintiff’s workforce is confidential and valuable;
35.2. That the
information detailed above constitute confidential information which
are useful to the plaintiff, not public knowledge
or public property
and of economic value to the plaintiff
.
35.3. That the
confidential information detailed above, in the hands of a
competitor, shall place the competitor at an unfair advantage,
to
make use of the said information to springboard a competing business,
alternatively, to unfairly and/or unlawfully compete with
the
applicant;
35.4. by wrongfully using
and sharing the confidential information of the plaintiff, the
plaintiff, will result in the plaintiff
suffering ongoing damages.
[36] Additionally,
employees of the plaintiff reported that the first defendant not only
offered them employment,
but also engaged in discussions with them about salaries. By engaging
in the described actions, the first
defendant intentionally
disseminates this information about the plaintiff aiming to attract
and allure employees to join the second
defendant at the expense of
the plaintiff.
[37] The first defendant
wrongfully leveraged the resources tools and expertise of the
plaintiff to conduct the operations of the
second defendant in
competition of the plaintiff, thereby providing the second defendant
with unjust, unfair and unlawfully advantage.
[38] All the while, the
first defendant receive remuneration from the plaintiff.
[39] The actions of the
first defendant described above, not only offends his fiduciary
duties towards the plaintiff, but also offends
the general public
sense of fairness and honesty.
[40] The wrongful conduct
committed by the first defendant was that he was in breach
with the contractual and
fiduciary duties and obligations owed to the plaintiff.
[41] As a result, the
first defendant disclosed and exploited confidential information
belonging to the plaintiff, causing harm
to the plaintiff and
conferring advantages upon the defendant.
[42] In addition to the
direct financial prejudice and of losing suppliers to the defendants
as a result of the first defendant’s
misrepresentations, the
overall reputation of the plaintiff has suffered as a result of the
wrongfully conduct of the defendants.
[43] Upon scrutinizing
the respondents’ opposing affidavit, it becomes clear that they
have fundamentally misunderstood the
purpose and essence of these
legal proceedings. Contrary to their perception, the applicant’s
objective is not to hinder
competition, but to address the alleged
illegal activities conducted by the Respondents, during the first
respondent’s tenure
with the applicant.
[44] The focus of the
applicant’s concern lies in the historical actions of the
respondents
those carried out while
the first respondent employed by the applicant.
[45] The applicant,
confronted with compelling evidence discussed above, reasonably
believed that the
respondents were engaging in illicit competition against them. This
belief led to the initiation of the ex parte
application.
[46] Following the
implementation of the Anton Piller order, the applicant’s
initial concerns were substantiated, as substantial
incriminating
evidence was reportedly discovered in the possession of the first
respondent. This evidence indicated that the respondents
had violated
contractual, statutory, and common law obligations owed to the
applicant.
[47] It is worth
mentioning that while the respondents do not deny the existence of
this evidence, they merely contest its volume,
which does not
alleviate their predicament. In fact, according to the respondents’
own account they admit to several critical
points:
(a) the first respondent
operated a competing business while employed by the
applicant and holding a
minority share;
(b) the respondents
utilized the applicant’s resources for their unlawful
business;and
(c) they serviced clients
of the applicant, both past and present.
[48] The effectiveness of
the Anton Piller order remains undisputed, with the results set
to be presented in the
forthcoming trial proceedings. however, the crux of the respondents’
opposition seems to stem from
their awareness that their actions were
unlawful and that the
collected evidence will substantiate this fact instead of confronting
the consequences of their misconduct.
[49] Rewarding such
behaviour by entertaining unsubstantiated claims aimed at creating
factual disputes would be unjustified, Anton
Piller orders are
designed precisely to prevent such evasion tactics.
[50] In the absence of
any evidence from the respondents demonstrating a violation of their
rights through the order, the interim
order should be finalized.
[51] Upon further
examination of the respondent’s response, it became apparent
that their approach is carefully crafted to
sidestep the core
allegations and create distractions. This strategy falls short of
genuine disputes of fact as outlined in legal
precedent. Therefore.
the respondents’ attempts to evade accountability lack
sincerity and fail to meet the threshold of
legitimate factual
disputes.
[52] In
Wightman
t/a J W Construction v Headfour (Pty) Ltd and another
[2008] ZASCA 6
; ,
2008 (3) SA 371
(SCA)
the SCA had the following to say about
factual disputes in para 13;
A real, genuine and bona fide dispute
of fact can exist only where the Court is
satisfied that the
party who purports to raise the dispute has in his affidavit
seriously and unambiguously addressed the fact said
to be disputed.
There will of course be instances where a bare denial meets the
requirement because there is no other way open
to the disputing party
and nothing more can therefore be expected of him. But even that may
not be sufficient if the fact averred
lies purely within the
knowledge of the averring party and no basis is laid for disputing
the veracity or accuracy of the averment.
When the fact averred are
such that the disputing party must necessarily possess knowledge of
them and be able to provide
an answer (or countervailing
evidence) if they be not true or accurate but, instead of doing so,
rests his case on a bare or ambiguous
denial the court will generally
have difficulty in finding that the test is satisfied. I
‘’generally’’
because factual averments
seldom stand apart from a broader matrix of circumstances all of
which needs to be borne in mind when arriving at a decision. A
litigant may not necessarily recognise or understand the nuances of a
bare or general denial as against a real attempt to grapple
with all
relevant factual allegations made by the other party. But when he
signs the answering affidavit, he commits himself to
its contents,
inadequate as they may be, and will only in exceptional circumstances
be permitted to disavow them. There is thus
a serious duty imposed
upon a legal adviser who settles an answering affidavit to ascertain
and engage with facts which his client
disputes and to reflect such
disputes fully and accurately in the answering affidavit. If that
does
not happen it should come as no surprise that the court
takes a robust view of the matter. ’’
[53]
The Court further emphasised the following in para 12:‘’[12]
Recognising that the
truth almost always lies beyond mere linguistic determination
the courts have said that an applicant
who seeks final relief on
motion must in the event of conflict, accept the version set up by
his opponent unless the latter’s
allegations are, in the
opinion of the court, not as such as to raise
a
real genuine or bona fide dispute of fact or are, so far-fetched or
clearly untenable that the court is justified in rejecting
them
merely on the papers:
Plascon-Evans
Paints Ltd v Van Riebeeck Paints (Pty) Ltd
[1984] ZASCA 51
;
1984 (3)
SA 623
(A) at 623 (A) at 634 E-635C
.
See the analysis by Davis J in
Ripoli-Dausa
v Middleton NO [2005] ZAWCHC 6
[2005] ZAWCHC 6
; ;
2005 (3) SA 141
(C) at
151A-153C
with
which I respectfully agree.’’(I do not overlook that a
reference to evidence in circumstances discussed in the
authorities
may be appropriate).
[54] The respondents’
opposing submissions are neither real, genuine nor bona fide. It is
evident that the respondents’
opposition to this application is
grounded in three main legal arguments, summarized as follows:
54.1 Firstly the
respondents allege that the applicant failed to present essential
facts to the court.
54.2 Secondly, the
respondents argue that the interim order was overly broad and
improperly executed.
54.3 Lastly, the
respondents claim that the supplementary affidavit sought additional
relief.
[55] The respondents’
answer is rife with emotive and irrelevant content, clearly intended
to unfairly tarnish the applicant’s
reputation and create a
misleading atmosphere. Another glaring aspect of the respondents’
affidavit is the excessive use
of legal arguments, which the
applicant staunchly disputes.
[56] I hold the view that
these legal arguments put forth by the respondents cannot hold
weight. They are selective, taken out of
context, and fail to grasp
the intricacies of employment obligation and shareholder
responsibilities within a company.
[57] The respondents’
deliberate omission of key factual issues and their blanket denial
strategy does not amount to a genuine
dispute of facts.
[58] It is significant to
highlight that despite the respondents’ unfounded objection to
the order issued, they failed to
submit a Rule 6(12)(c) application
seeking reconsideration of the ex parte order favouring the
applicant. This failure is noteworthy,
especially considering that
the respondents are represented by two legal counsel, one of whom is
a senior counsel.
[59] This leads to the
argument that the respondents had the chance to an application
or
reconsideration if they genuinely believed that the ex parte order
exceeded its scope. However, they chose not to do so. This
deliberate
omission raises questions about the sincerity of their grievances
regarding the order’s alleged shortcomings.
[60] Of particular
significance for the current context are the passages within the
matter of
Shoba
, supra at 18 J-19B
wherein specific
obiter dicta from the
Universal
Studios
supra case,
pertaining to the Court’s inherent powers in the development of
procedural remedies, were implicitly affirmed:
“
With
reference to the third component and the views expressed in the
Cerebos Food case concerning it, the judgement in the Universal
City
Studios case makes the following observation
(at 754E-F): ‘
Now,
I am by no means convinced that in appropriate circumstances the
court does not have the power to grant ex parte and without
notice to
the other party, i.e the respondent (and even, if necessary, in
camera) an order designed pendente lite to preserve evidence
in the
possession of the respondent. It is probably correct, as so cogently
reasoned by the Court in the Cerebos food case supra,
that there is
no authority for such a procedure in our common law. But, of course,
the
remedies devised in the Anton Piller case supra and
other subsequent cases for the preservation of evidence are
essentially modern
legal remedies devised to cater for modern
problems in the prosecution of commercial suits’’.
[61] After reference to
the Court’s inherent power to regulate its procedures in the
interest of the proper administration
of justice, the aforesaid
judgment proceeds quoting
Universal City Studios
supra at page
42: “
In a case where the applicant can establish prima facie
[the requisites for an Anton Piller order] and the applicant asks the
Court
to make an order designed to preserve the evidence in some way,
is the Court obliged to adopt a
non possumus
attitude? Especially if there is no feasible alternative? I am
inclined to think not. it would certainly expose a grave defect in
our system of justice if it were to be found that in circumstances
such as these the Court were powerless to act. Fortunately,
I am not
persuaded that it would be, An order whereby the evidence was in some
way recorded, e.g. by copying documents or photographing
things or
even by placing them temporarily, i.e. pendente lite in the custody
of a third party would not, in my view, be beyond
the inherent powers
of the court. Nor do I perceive any difficulty in permitting such an
order to be applied for ex parte and without
notice and
in
camera,
provided that the applicant can show the real
possibility that the evidence will be lost to him if respondent gets
wind of the application”
[62] In this instance,
there has been no deviation from the established rules governing
Anton Piller applications, as outlined in
the
Shoba
case and
subsequent decisions.
[63] The evidence
suggests that the application was made to preserve evidence rather
than to escalate suspicions. It is my view
that the respondents
attempt to evade accountability by raising vague and evasive
allegation.
[64] In addition, the
applicant detailed the damages claim (consequent to and Result of the
Defendants’ wrongful conduct).
[65] What is evident from
the above, is that premised on the information provided by the
applicant’s said employees, the applicant
formulated the Anton
Piller application herein and importantly, also proceeded to issue
and serve particulars of claim.
[66] The allegation that
the applicant failed to present essential elements is far from the
truth. This insinuation is nothing but
a diversion. The applicant’s
successful acquisition of substantial incriminating evidence from the
respondents’ clearly
indicates the validity of their initial
concerns. The respondents’ attempt to create a fictitious
factual dispute lacks sincerity
and is clearly designed to mislead.
[67] I hold the view that
a of the applicant’s founding papers, reveals facts, that if
accepted by the trial court, would
reveal a substantive cause of
action, let alone a prima facie case. In the applicant ‘s
founding affidavit, the following
averments were pleaded;
67.1. The gist of the
cause(s) of action to be relied on by the applicant relates to the
first respondent’s unlawful conduct
in usurping the applicant’s
client, suppliers, employees, etc in the clear, yet unlawful attempt
to complete with the applicant.
67.2.
In amplification, OHM Electrical intends to pursue action against the
respondents for the unlawful and
unfair use of OHM’s fruits of labour, the falsehoods ‘’spread’’
by
the respondents about OHM’s products, services and business,
the unfortunate misrepresentations of the respondents by
intentionally
distorting facts about their (the Respondents’)
business, in an attempt: (a) to gain an unfair (and thus unlawful)
advantage;
(b) to manipulate OHM’s
customers and suppliers and to distort the markets’ perceptions
of OHM Electrical and the respondents’
(c) to unfairly and
unlawfully gain a competitive advantage over OHM Electrical by
intentionally inducing established and existing
clients of OHM
Electrical to rather do business with the respondent.
[68] On perusal of the
papers it is clear that OHM intends to seek relief against Van Eeden
premised by the fact that by acting
in the manner recorded above, he
is in breach of the various of the said fiduciary duties, including
the duty not to act against
the interest of your employer in an
attempt to benefit yourself and also, not to utilise confidential
information which came to
your knowledge whilst employed, against
interest of your employer and to your benefit.
[69] The first respondent
while occupying a position of trust within the applicant’s
organisation and concurrently serving
as the exclusive director of
the second respondent, illicitly intercepted quotations provided by
OHM Electrical to its clients
and suppliers.
[70] Subsequently. this
information was leveraged to undermine the pricing structure of
the applicant, to the
(unlawful) benefit of the respondents.
[71] It is my view that
the first respondent, acting through the intermediary of the second
respondent engaging in unlawful competition
with the applicant. This
assertion does play a pivotal aspect of the core dispute.
[72] From a prima facie
view of the abovementioned annexures it is evident and clear that the
first respondent is wrongfully (and
unlawfully) interfering with the
business of OHM Electrical. I agree with Counsel for the applicant
that he used OHM Electrical
as the ‘’vehicle” of
the second respondent.
[73] At no stage did Van
Eeden disclose the registration of the second respondent, and also at
no stage did he disclose the operations
and/or business model of the
second respondent.
[74] I am guided by the
well-established principle that the utilisation of the competitor’s
confidential information, particular
that of one’s own
employer, with the intend to secure a trade advantage is
unequivocally unlawful.
[75] Counsel for the
respondents argued that there are contradictions in statements made
by Mr Vilakazi. The first statement is
the one which first respondent
took a photograph. The second one is the one which Mr Vilakazi made
in Court.
[76] I have perused the
answering affidavit by the respondents. Nothing is mentioned about
contradictory statements.
[77] Therefore the
argument that there are contradictions between the two statements
cannot stand.
[78] Under the heading
“Cause of action” the Applicant pleaded as follows: “The
applicant intends instituting
proceedings the first and second
respondents for inte alia the following relief:
78.1 Injunctive relief;
78.2 Forfeiture of
profits gained through their unlawful practices;
78.3 An order declaring
the first respondent as delinquent director as contemplated in S 62
of the Companies Act, 71 of 2008 (as
amended);
78.4 The delivery of the
applicant’s assets;
78.5 The delivery of the
applicant’s confidential information, records, documents and as
assets;
78.6 A possible claim for
damages.
[79] As stated above, the
applicant is not required to show more than that there is evidence,
which if accepted, will establish
a cause of action.
In
this regard, the second respondent will as a matter of necessity also
be joined as a party to the litigation, as it will be affected
by the
relief sought”.
[80] I am of the view
that the nature of the search and the plethora of evidence found in
the possession of the respondents align
with the sentiments described
by the Court in
Universal City Studios
above. Moreover, the
applicant has since instituted damages claim against the respondents
and the evidence seized by the Sheriff
directly correlates to that
cause of action.
[81] Additionally, the
evidence shows that the first respondent possesses quotations and
invoices designed to divert clients from
the applicant unlawfully.
[82] The applicant does
claim for the impropriety of the first respondent’s actions.
[83] The aforesaid was
bolstered by the fact that upon execution of the Anton Piller order
the sheriff confiscated a plethora of
evidence. It is noteworthy to
mention that the respondents do not deny evidence collected and
stored.
[84] Considering the
first respondent’s apparent tendency for questionable actions
and disregard for the fiduciary duties,
t is undeniable that if he
was made aware of this application, he would likely have attempted to
eliminate any evidence that could
prove his culpability.
[85] Therefore, resorting
to discovery procedures, as permitted by the Court’s
rules,would likely be ineffective given his
unscrupulous behaviour.
Differently put, the ex parte nature of the application was clearly
necessitated.
[86] It must be noted
that neither the applicant nor its attorneys has had sight of
evidence preserved by the Sherriff.
THE TWO MONTHS’
ISSUE
[87] The Respondents
allege that the interim order made herein, ought to be discharged on
the basis that the Applicant did not institute
legal proceedings
within 2 (two) month of the date of the order, being 24 November
2023.
[88]
To this
end, the order reads as follows:
88.1 The costs of this
application are reserved for determination in the further legal
proceedings foreshadowed in this application
save that
88.2 If the applicant
does not institute those legal proceedings or proceed with the
pending legal proceedings within 2 (two) months
after date of this
order, either party may, on not than 96 hours’ notice to the
other, apply to this Court for an order.
88.3 Determining
liability for those costs and determining what must be done about the
removed items and any copies thereof. 88.4
Any other party affected
by the grant are execution of this order may on no less than 96 hours
‘notice apply to this court
for an order determining liability
for the costs of such party and determining what must be done about
any item removed from any
such party or any copy thereof.’
[89] I hold the view that
this argument should be dismissed. Firstly, the respondents did not,
pertinently and specifically, plead
as a ‘’ point’’,
that the interim order ought to be discharged on the basis that the
applicant failed to
comply with paragraph 46.1 of the order.
[90] In fact, the
allegation pleaded by the Respondents on this issue, is contained in
paragraph 149 of its opposing affidavit which
reads as follows: “149
No cause of action is currently pursued by the Applicant.’’
[91] The respondents
ought to be “held” to their pleadings and consequently,
that the said point is not be permitted
to be introduced into
argument.
[92] It is common cause
that the applicant served and delivered particulars of claim in the
Johannesburg Division of the Court on
24January 2024. This was within
the 2- month period as from the 24
th
of November 2023.
[93] It is further common
cause that consequent to communication from the respondent’s
attorneys, who advised the applicant’s
attorneys of the fact
that summons was issued out of the wrong court. The said summons was
re-issued and delivered (in the Pretoria
High Court) on 9 February
2024.
[94] I hold the view that
view that the Gauteng Local Division is not the wrong since both
Courts have co-current jurisdiction and
therefore there is no merit
on the argument by the respondence on this issue. The applicant did
comply with the said two-month
period in that the applicant did
institute legal proceedings and certainly did proceed with legal
proceedings within a two-month
period.
[95] According to the
oral representations made on behalf of the Respondents, ‘no
explanation’ was
provided for the above mentioned ‘error’. This is not
correct
[96] In this regard,
paragraph 110 of the applicant’s replying affidavit reads as
follows:‘’As previously mention,
the updated summons was
delivered to the Respondents’ attorneys as early as 9 February
2024. A minor administrative error
was identified, and the
Respondents’ attorneys graciously brought it to the
attention of my legal representatives.
Consequently, the initial
summons was withdrawn and subsequently re-issued in this Court.’’
[97] Secondly the order,
does not in peremptory terms directs the applicant to institute legal
proceedings within a two month period
but rather records the
consequence in the event of a failure to do so.
[98] To this end, the
order records the rights of the Respondents, to approach the Court,
on notice, for relief (including costs),
that amounts to no less than
a “discharge’’ of the order.
[99] It is common cause
that the respondents did not approach the Court for any of the relief
and did not exercise any of their
right, recorded in paragraphs
11.1.1.and 11.1.2 of the order.
[100] Even on this basis
alone, and in the absence of an explanation for not exercising their
said rights, the point ought to be
dismissed.
[101]
In support of their argument, the Respondents place reliance on the
decision of
Taskflow
(Pty) Ltd v Aluxium (Pty) Ltd and Others (2021/41676) [2021]
ZAGPPHC 604
.
It is my view that
reliance on the said case, takes the point no further. In
Lasercraft
Mergence (Pty) Ltd v Dreyer and
Others
(
2023-044109)
[2024] ZAGPJHC
1760
the
court in paras below inter alia held that:
8.
Before the respondents’
reconsideration application could be heard the 60-day period within
which Lasercraft was bound to
institute the proceedings
envisaged in my order expire
10.
Lasercraft failed to institute the
proceedings it said it wanted to bring against the respondents within
the 60-day period specified
in my order. In fact, it had still not
instituted those proceedings when its application to extend the
60-day period was argued
before me. The founding affidavit to
Lasercraft’s extension application was deposed to by its
attorney, Mr. Rebello. In that
affidavit,
Mr. Rebello all but admitted that he had misunderstood the importance
of the order. He had mistakenly thought that Lasercraft
had 60days
from the
date on
which the Anton Piller relief and the rule nisi had been reconsidered
and confirmed in the respondents’ presence in
which to
institute the proceedings.
12.
But, for months after Mr. Rebello
should have realised his mistake, Lasercraft took no steps at all to
plead or institute its claims.
It still had not done
so when it extension application
was called for hearing before me. The obvious question is: why not?
13
.
That question, which
I posed in argument on 20 February 2024, elicted a different
explanation to the one Mr. Rebello gave in his
affidavit of 25
October 2023, Mr.Ohannessian, who appeared together with Ms. Lombard
for Lasercraft, explained that the proceedings
had still not been
instituted because Lasercraft needed to see the documents preserved
under the Anton Piller order before it could
its case.
14.
In my view, that is plainly
impermissible. Anton Piller orders are meant to preserve evidence
vital to sustain a cause of action
a litigant knows or reasonably
believes they have. They may not be used to procure documents
necessary to found a cause of action
that the litigant merely
suspects might exist
(see
Universal City Studios Inc
v
Network Video (Pty) Lty
[1986]
ZASCA 3
;
1986 (2) SA 734
(A)at 755H-J and Viziya Corporation v
Collaborit Holdings (Pty) Ltd
2019 (3) SA 173
(SCA) paragraph 23)
16.
It
follows from this that, when it approached me for Anton Piller
relief, Lasercraft ought to have known what its cause of action
was.
It should also, in principle, have been be ready to plead its cause
of action without reference to the evidence it sought
to preserve.
Lasercraft cannot now expect to be able to look at the documents
seized in terms of my order for the very purpose
of formulating and
pleading the cause of action, it says it has had all along.
19.
It is of course true that an
applicant for an Anton Piller order need not have drafted their
particulars of claim or their founding
papers at the time the relief
is sought. Nor must they exhibit those papers in draft form to the
count from which they seek Anton
Piller relief. But the reason for
this is not that the applicant is entitled to see the documents
seized and preserved under the
Anton Piller order before they plead
their case. It is because Anton Piller relief is likely to be very
urgent. In those urgent
circumstances, the need to preserve the
evidence upon which the applicant intends to rely means foregoing a
thorough interrogation
of the strength of their cause of action. A
court need only be satisfied that there is a cause of action prima
facie and that the
applicant honestly intends to pursue it. That can
be ascertained without reference to draft pleadings. The cause of
action must
still exist, however, and the purpose of Anton Piller
relief seems to me to be to allow the applicant to formulate its
pleadings
knowing that doing so is not an exercise in futility. The
applicant can rest assured that the evidence it will later need has
not
been lost or destroyed.
22
.
Lasercraft’s concession that
it needs to see the documents preserved under
the
terms of my order before it can institute the main proceeding means
that it was never entitled to Anton Piller relief in the
first place.
Lasercraft accepts.that it cannot now plead, and probably never could
have pleaded, the causes of action it assured
me were available to it
when I originally granted the Anton Piller order.
23.
It
follows from this that there was, in truth, no cause of action to
which the preserved documents could have had any cognisable
relevance, and no basis on which the Anton Piller relief could
properly have been sought or granted. There is obviously, in these
circumstances, no good cause to extend the period
available to Lasercraft to
institute proceeding against the respondents.
[102] It is clear from
the above cases that Anton Piller orders are meant to preserve
evidence vital to sustain a cause of action
a litigant knows or
reasonably believes they have. They cannot not be used to procure
documents necessary to found a cause of action
that the litigant
merely suspects might exist. This is different from the case herein.
The applicant knows his case and had already
issued summons.
THE SUPPLEMENTARY
AFFIDAVIT AND FURTHER AFFIDAVIT
[103] The respondents
have served and filled further affidavit. The applicant has served
and filled a response to the further affidavit.
The respondents
allege that purpose of the further affidavit is to deal with the
transcript of the oral evidence which was led
before my sister Collis
on the 24 November 2023. This would be in support of their opposition
to the confirmation of the interim
order as well as the additional
relief sought.
[104] The respondents
allege they only became aware of the fact that oral evidence had been
led upon reading the applicant’s
heads of argument. Their
attorneys of record then requested a transcript of this oral evidence
from the applicant’s attorneys
of record.
[105] Their attorneys of
record were provided with the said transcript on the 10 June 2024
which was also uploaded on Case Lines.
The first respondent alleges
that from the 10 June to the 13 July was unable to consult with his
attorneys of record due to the
fact that they have arranged for a
consultation being the first available date for the end of July 2024.
This is due to the constraint
in the dairies of the attorneys of
record and the voluminous transcription that needed to be read.
[106] In paragraph 9 of
his further affidavit he alleges that on the 13 July 2024 he and his
family were attacked in their home
by unknown assailants. He was shot
and admitted to Montana Hospital and the next day he was transferred
to Unitas Hospital Intensive
Care Unit. On 15 July he was transferred
to a normal ward and discharged later that evening.
[107] The 3 weeks that
ensued, he was resting and recovering due to the continuous pain he
was experiencing. He was not even allowed
to drive.
[108] The first available
date to consult with his attorneys of record was the 14 August 2024
hence the affidavit was prepared thereafter.
[109] It is well-
establish that the standard procedure permits the filling of 3 sets
of affidavits: the founding, answering and
replying. Should a party
wish to submit an additional affidavit it must seek and obtain
Court’s permission. The decision
to allow any further affidavit
lies with solely within the Court’s discretion.
[110] I have read the
supplementary affidavit, the further affidavit and the answer to the
further affidavit herein. My reading
was in a general context, and is
not intended to, and cannot, bind the Court determining the Main
Application.
[111] It is worth
mentioning that the transcript is not voluminous to any degree and
would not have required a long and protracted
consultation. A perusal
of the respondent’s averments in this regard reveals no
reliance on the representatives being unavailable
due to their
required presence at trial or other court attendances. The
allegations are that these representatives were not available
due to
office and chamber related work.
[112] I hold the view
that having regard to the volume and the extent of the further
affidavit herein, it is inconceivable that
neither the junior and/or
senior counsel instructed on behalf of the respondents could have
attended to the finalisation of the
said affidavit. They could have
finalised the said affidavit between the 10
TH
June 2024
and mid July 2024 when the first respondent was shot.
[113] The further
affidavit was delivered at the last hour. It contains new evidence
and defences that could have and should have
been raised in the
respondent’s initial opposing affidavit.
[114] The respondents
neglected to seek leave of the Court before filing this further
affidavit.
[115] Mr Ackers’
Supplementary Affidavit is dated 1 February 2024. It is common cause
that Mr Acker was not present during
the execution of the Aton Piller
Order. On perusal of the said affidavit and the respondents’
heads of argument I got the
impression that the respondent labour the
fact that: M
r
Acker’s reference to a plethora and large
amount of evidence confiscated constitutes a misrepresentation and
constituted a
lie.
[116] I hold the view
that the Respondents’ submissions in this regard are
misplaced.To this end, Mr Acker in paragraph 22
of the said
Supplementary Affidavit, clearly pleaded that: “During the
proceedings, a plethora of evidence was confiscated
I am advised
that three large bags of evidence were confiscated which include’’
[117] Also, in paragraph
26 of the supplementary affidavit
Mr Acker pleaded as
follows:
‘’
Some
of the evidence obtain,
so
I am advised
were
detailed client lists of the applicant and blue prints of projects of
clients of the applicant. The prima facie view conveyed
in the
founding affidavit was therefore confirmed.’’
[118] In addition to the
above, in the applicant’s Replying affidavit Mr Acker
pertinently pleaded that:
118.1 Upon the execution
of the Anton Pillar order the applicant prima facie concerns were
validated. Substantial incriminating
evidence was allegedly (I say
allegedly because I have not had sight of the confiscated evidence)
discovered in the possession
of the first Responded indicating that
the Respondent’s had operated a business in violation of
contractual, statutory and
common law obligations owed to the
applicant.
118.2 It is important to
note that neither I nor my attorney has examined the collected
evidence. We considered it essential to
obtain the final order first.
following which an arrangement will be made with the Respondents’
attorneys to inspect and
compile the evidence held at the sheriff’s
office. In other words, the evidence remains preserved.
[119] Premised on the
above, I hold the view that Mr Acker did not misrepresent his actual
and/or perceived knowledge of what was
seized, as alleged or at all.
It appeared to me that the contents of the Supplementary Affidavit
simply constituted legal argument,
and did not take the merits of the
Main Action any further. The supplementary affidavit was submitted to
provide the Court with
insight into the execution of the interim
order and to justify the applicant’s request for costs. This
does not constitute
an additional claim for relief as suggested by
the respondents. The Court dealing with the Main Action may, having
regard to the
Main Application as a whole, may find that the
allegations contained in the Supplementary Affidavit were crucial.
[120] Having said that I
hold the view that the further affidavit and further answering
affidavit should be regarded as
pro Non Scripto.
THE PROPORTIONALITY OF
THE ORDER
[121] The interim order
inter alia reads as follows:
3. “That the
respondents and any other adult person in charge of the premises of
the second respondent (being the residential
address of the first
respondent and the registered address of the first respondent and the
registered address of the second respondent)
at 10 VILLA CHENE,
VERONICA ROAD, PRETORIA GAUTENG granted the Sheriff of the above
Honourable Court and/or his deputy(ies), together
with the
applicant’s director (Mr Thomas Acker), the applicant’s
attorney (Mr Carel Nicolaas Venter) an IT specialist
nominated by the
applicant and the independent supervising attorney (Mr David Botha
Bekker) access to the said premises. for the
purpose of:
3.1. Searching both
premises (including any containers of whatsoever size and nature) for
the purpose of enabling any of those persons
to identify and point
out to the Sheriff originals, copies, extracts, electronic copies,
any data store on any medium or record
of the following;
3.1.1 Communications
between the First Respondent and clients; suppliers, employees,
associates, affiliates and shareholders
(past and present) of the
applicant concerning the second respondent’s affairs, including
but not limited to shareholding,
directorship, contracts and bank
accounts;
3.1.2 Company documents
of the second respondent and documents reflecting the second
respondent’s affairs including but not
limited to shareholding,
share registers and directorship;
3.1.3 Documents relating
to the second respondent’s affairs including, but not limited
to contracts, bank statements, invoices,
quotations, and proof of
payments;
3.1.4 Documents relating
to the Second Respondent’s submissions in respect of projects,
tenders, contracts of clients, suppliers,
employees, associates,
affiliates and shareholders (past and present) of the applicant;
3.1.5 Documents,
containing particulars of shareholding in the second respondent.
3.2. Searching the
premises for the purposes of finding any vehicle, computer, laptop,
internal or external storage drive, cellular
telephone, smart phone
and/or tablet containing any of the items referred to above.
3.3. Examining any item
for the purpose of identifying it and deciding whether it is of the
nature mentioned in paragraph 1.1. And;
12.1 The Applicant and its
attorneys may inspect any of the removed documents (save for any disc
containing forensic copies or
imagines of any hard drive, disks,
cellular phones, smart phone or imagines of any hard drive, disks,
cellular phone, smart phone
or other electronic storage devices
containing information found at the premises) relevant to the present
application; 12.2 The
applicant will be entitled to cause an
inspection to be held with the copies of the discs so provided, discs
so provided, discs
onto which information (including mages) had been
copied and other electronic storage devices containing information
found on the
premises. The inspection will be done by the applicant’s
IT specialist under the supervision of the independent supervising
attorney and the Sheriff. The respondents will be entitled to have
present thereat an independent attorney and IT specialist. The
inspection which shall be done in respect of each forensic disc of
which a copy has been produced as aforesaid or other electronic
storage device onto which electronic images had been copied during
the search of the premises, shall be done for the purposes of
searching the discs or other electronic storage devices and copying
onto another disc or other electronic storage devices any of
the
listed items in paragraph 1.1. A copy of this disc or other
electronic storage devices shall be provided to each of the
respondents
and to the Sheriff. 12.3 The applicant and its attorneys
shall, 96 hours after the electronic copy of listed items had been
made
as contemplated in paragraph 10.2 be entitled to inspect such
electronic copy relevant to the present application or to the further
legal proceedings envisaged in the application.”
[122] It is of interest
to note that in the abovementioned Supreme Court of Appeal decision
of
Non-Detonating
supra at paras 44 and 45 the Court says: “
in
the circumstances, the court a quo erred when it discharged the
interim order on the return day. The high court ought to have
confirmed the interim order subject to a few amendments which do not
alter the substances of the order but further ensures that
the
forensic search is limited to relevant items. Counsel for the
appellant rightly conceded that the formulation of the interim
order
does not in some respects comply with requirements for Anthon Piller
orders. In particular, the phrase in clauses 144.1 and144.2
of the
order, which reads’… in order to assess
whether
it provides evidence…’ should be amended to limit the
search and seizure to relevant documents by deleting
the words
‘identical or similar to ’ in the second sentence and
substituting these with ‘substantially identical
to.’No
case was made out for the search and seizure of photographs and
videos and the appellant is thus not entitled to an
order in this
regard. Paragraph 16 of Schedule A is irrelevant and should be
deleted. [45] The provisional order dated 16 August
2012 is amended
by substituting paragraphs 10.1,10.4 and annexure A thereto with the
following- “10.1 Applicant and its attorneys
may inspect any of
the removed documents (save for any disc containing forensic copies
of any hard drives, discs or other electronic
storage devices
containing information found at premises) relevant to the present
application or the further legal proceeding envisaged
in the
application.10.2 The Applicant and its attorney shall,96 hours after
the electronic copy of listed items has been made as
contemplated in
paragraph 144.1, be entitled to inspect such electronic copy relevant
to the present application or to the further
legal proceedings
envisaged in the application.’’
[123] Firstly, the
content of the interim order; differs from the orders, made by the
courts, in the decisions relied on by the
respondents.
[124] Secondly, a perusal
of the respondents opposing papers reveals that the respondents do
not dispute to be in possession of
the items and documents listed in
paras 1.11. -- 1.1.5 of the order, but rather tailored their
opposition to the order being made
final, on the allegation that the
order is too ‘’wide’’ and goes too ‘’far’’.
[125] Counsel for the
applicant argued that if this Court agrees with the respondents that
(some) of the information seized, as
recorded in paras 1.1.1-1.1.5 of
the order; are to ‘’wide’’, there is nothing
prevents this court from
‘tailoring’ the order in a
manner the court deems fit.
[126] In
Non-Detonating
Solutions supra
, the SCA expressly found that the order that had
been sought and obtained ‘’does not in some respects
comply with the
requirements for Anton Piller order.’’
Despite this, it considered that the Court should have upheld the
reconsideration
‘’subject to a few amendments which do
not alter the substance of the order but further ensure that the
forensic search
is limited to relevant items’’.
[127] Similarly, in
Richards Bay Titatnium (Pty) Ltd and Another v Cosco Shipping
Logistics Africa (Pty) Ltd and Others (020911/2023 [2023] ZAGPPHC
402
, the
.
Court found that the scope of the
search was framed in terms that would impermissibly ‘’drag
innocent third parties
into the fray’’ but nevertheless
did not set it aside in its entirely, and instead amended it to
render it legally
compliant on the basis that ‘’[s]ince
the order is being reconsidered, this court is seized with the
application and
empowered to vary any aspect of the order granted’’.
[128] For reasons
mentioned, I hold the view that the allegation the order is not too
wide or goes too far lacks merit as the core
issue remains the
applicant’s justified belief in the respondent’s unlawful
actions and their need to preserve crucial
evidence for the upcoming
legal proceedings. All the said items have a bearing on and is
relevant to the cause of action pleaded
by the Applicant.
[129] Furthermore, the
proposed draft order was meticulously crafted to align with the
necessary level of detail required to achieve
the desired outcome.
The relief sought is in line with established legal principles and
caselaw, representing the appropriate course
of action for the
applicant.
[130] The aforesaid is
further strengthened by the fact that my sister Collis J did not
merely grant the order, but was quite meticulous
in her approach. She
sought oral testimony, both the deponents to the applicant’s
papers. One of the employees (Mr Vilakazi)
of the applicant gave
testimony under oath.
[131] I hold the view,
that the applicant has successfully complied with the principles for
an Anton Piller order enunciated above
and is therefore entitled to
the relief sought. The rule nisi should be confirmed. Therefore, the
following order is made.
ORDER
1. The further
Affidavit and answering Affidavit thereto are declared Pro Non
Scripto.
2. The interim order
herein is confirmed.
3. The Respondents are
to pay for costs.
MOLEFE MATSEMELA
Acting Judge of the
Gauteng High Court, Pretoria
This judgement was
prepared and authored by the Judge whose name is reflected and is
handed down electronically by circulation to
the parties’ legal
representative via email and by uploading it to the electronic file
of this matter on Case Lines. The
date of this judgement is deemed to
the 27 December 2024.
Heard on the 19 and 21
September 2024 and 25,27 October 2024
For
the Applicant
Adv
Goosen
Instructed
by
Serfontein
Viljoen & Swart
For
the Respondents
Adv
J Joubert SC
With
her
Adv
GL Kasselman
Instructed
by
AH
Stander & Agengbag
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