Case Law[2023] ZAGPPHC 741South Africa
Micros South Africa (Pty) Ltd and Others v Kleynhans and Others (074606/2023) [2023] ZAGPPHC 741 (1 September 2023)
Headnotes
Summary: Urgent application – enforcement of restraint of trade agreement – interdictory relief – enforceability – protectable interest - confidential information and trade connections - sufficient if shown that there was confidential information or trade connections to which respondent had access and which could be exploited by new employer – application succeeds.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Micros South Africa (Pty) Ltd and Others v Kleynhans and Others (074606/2023) [2023] ZAGPPHC 741 (1 September 2023)
Micros South Africa (Pty) Ltd and Others v Kleynhans and Others (074606/2023) [2023] ZAGPPHC 741 (1 September 2023)
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# REPUBLIC OF SOUTH
AFRICA
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT
OF SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
CASE NO
:
074606/2023
DATE
:
1st September 2023
In the matter between:
# MICROS
SOUTH AFRICA (PTY) LTD
MICROS
SOUTH AFRICA (PTY) LTD
First
Applicant
# ADAPT
IT (PTY) LTD
ADAPT
IT (PTY) LTD
Second
Applicant
ADAPT
IT INTERNATIONAL LIMITED
Third
Applicant
And
# KLEYNHANS,
ANEKE
KLEYNHANS
,
ANEKE
First
Respondent
HRS
HOSPITALITY AND RETAIL SYSTEMS (PTY) LTD
Second
Respondent
HRS
HOSPITALITY AND RETAILS SYSTEMS GMBH
Third
Respondent
Neutral
Citation
:
Micros SA and 2 Others v Kleynhans and 2 Others
(074606/2023)
[2023] ZAGPPHC ---
(01 September 2023)
Coram
:
Adams J
Heard
:
22 August 2023
Delivered:
01
September 2023 – This judgment was handed down electronically
by circulation to the parties' representatives by email,
by being
uploaded to
CaseLines
and by release to
SAFLII
. The
date and time for hand-down is deemed to be 15:30 on 01 September
2023.
Summary:
Urgent
application – enforcement of restraint of trade agreement –
interdictory relief – enforceability –
protectable
interest - confidential information and trade connections -
sufficient if shown that there was confidential information
or trade
connections to which respondent had access and which could be
exploited by new employer – application succeeds.
# ORDER
ORDER
(1) The applicants’
non-compliance with the Uniform Rules of Court be and is hereby
condoned and the matter is heard on an
urgent basis in terms of Rule
6(12)(a) of the Uniform Rules of Court.
(2) The first respondent
be and is hereby interdicted and restrained, for a period of one year
from the date of this order, from:
-
(2.1) Engaging in the
establishment, within the Republic of South Africa, Botswana,
Mozambique, Zimbabwe, Zambia, Angola, Malawi,
Lesotho, and Swaziland
(‘the SADC region’) and Mauritius, Seychelles, Reunion,
Mayotte and Madagascar (‘the Indian
Ocean region’), of
the second respondent’s business;
(2.2) Engaging in
the establishment of the business of any other firm within the
Republic of South Africa, and the SADC and
the Indian Ocean regions,
that competes directly or indirectly with the business of the first
and/or the second and/or the third
applicant;
(2.3) Engaging with
the second respondent as a shareholder, partner, director, or in any
other capacity, including as an employee,
within or providing any
services in regard to the second respondent’s business within
the Republic of South Africa, and the
SADC and the Indian Ocean
regions; and
(2.4) Engaging in
any other business that directly or indirectly competes with the
business of the first and/or second and/or
third applicant, whether
as a shareholder, partner, director, or in any other capacity, within
the Republic of South Africa, and
the SADC and the Indian Ocean
regions.
(3) The first respondent
be and is hereby interdicted and restrained from disclosing, using or
disseminating any information of
the first and/or the second and/or
the third applicant which has commercial or trade value, whether
technical or non-technical
information, including but not limited to
pricing, margins, merchandising plans and strategies, customers,
customer lists, purchasing
data, sale and marketing plans, future
business plans and any other information which is proprietary and
confidential to any of
the applicants for her own benefit or for the
benefit of any third party, including the second and the third
respondents.
(4) The second and/or the
third respondents be and are hereby interdicted and restrained from:
(4.1) Employing the first
respondent in relation to its business within the Republic of South
Africa, and the SADC and the Indian
Ocean regions for a period of a
year from the date of this order; and/or
(4.2) Otherwise
unlawfully competing with the applicants, including through:
(4.2.1) interfering
with the first applicant’s contractual relationship with the
first respondent, whether by intentionally
inducing the first
respondent to breach her contract with the first applicant or
otherwise; and/or
(4.2.2)
misappropriating confidential information of the applicants received
unlawfully through the first respondent to advance
its own business
interests and activities.
(5) The first and the
second respondents, jointly and severally, the one paying the other
to be absolved, shall pay the first, second
and third applicants’
costs of this Urgent Application.
# JUDGMENT
JUDGMENT
## Adams J:
Adams J:
[1]. The first, the
second and the third applicants are all related companies and are
part of a group of companies of which
Adapt IT Holdings (Pty) Ltd is
the holding company. The first applicant (‘Micros SA’) is
the company responsible for
managing the hospitality portfolio within
the Group. Through this hospitality portfolio, the applicants provide
software –
including the distribution of software and software
support services – to clients in the hospitality industry. The
software
distributed is
Oracle
software. Micros SA, the second
applicant (‘Adapt IT’) and the second respondent (‘HRS
SA’), which forms
part of an international group of companies
under the HRS brand and which was incorporated in April 2023 to
establish an office
in South Africa from which to service local
clients, are all
Oracle
Hospitality partners. Oracle is an
international software developer, which develops and provides
software solutions for a range
of industries, one of which is
hospitality. The management solution software used in the hospitality
space is called ‘Opera’,
through which hospitality
clients manage the operations of their hotels. It is the system
through which,
inter alia
, rooms are booked, customers are
checked in, and invoices are generated. It is the expressed intention
of HRS SA in the foreseeable
future to commences operations in South
Africa and to distribute Opera in the country.
[2]. From the
aforegoing, it is abundantly clear that the applicants, on the one
hand, and HRS SA and the third respondent
(‘HRS GMBH’),
on the other, are direct competitors in the same market and in the
same industry, providing software
solutions to the
hospitality industry. The first respondent
(‘Ms Kleynhans’)
has been employed by Micros SA since
November 2017 as an executive and a senior manager in the position of
Opera Operations Manager,
in which capacity she was responsible for
managing, advising and controlling all aspects of the business
pertaining to Opera products.
During July 2023, having accepted an
offer of employment from HRS SA to be their ‘Director of
Operations’, Ms Kleynhans
handed in her resignation and she is
currently serving out her notice period, the intention being that she
will commence her new
employment with HRS SA on 01 November 2023.
[3]. This is an
application for urgent interdictory relief in which the applicants
seek to enforce a contractual restraint
of trade and confidentiality
undertakings made by Ms Kleynhans, as a consequence of her intention
to take up employment with the
HRS SA, a competitor. The applicants
simultaneously ask the Court to restrain the second and/or the third
respondents from unlawfully
competing with the applicants through the
employment of the first respondent. I am satisfied that the matter is
urgent.
[4]. It is common cause
that Ms Kleynhans agreed to a restraint of trade undertaking in her
written employment contract with Micros
SA, which provides as
follows:
‘
22
Restraint of Trade
22.1 The employee [Ms
Kleynhans] undertakes not to be engaged in the establishing of a
business, or as a shareholder, partner, member
of a close
corporation, director of a company or in any other capacity that
directly or indirectly competes with the business of
Micros SA or
Adapt IT or its subsidiaries. The restraint will endure for a period
of one year from date of termination of your
employment contract. The
restraint is valid unless written confirmation is received from the
company authorising any changes contrary
to the above.
22.2 The employee, in
acknowledging receipt of this contract of employment, agrees that the
restraints set out are fair and reasonable
in all respects.
22.3 The employee
acknowledges that the company may recover any amounts and associated
recovery amounts from the employee in the
event of such breach.’
[5]. There is also a
non-disclosure agreement (‘NDA’) that was concluded
between Ms Kleynhans and Micros SA at the same
time as the employment
contract in which Ms Kleynhans gave detailed confidentiality
undertakings to Micros SA.
[6]. The
application is opposed by Ms Kleynhans and HRS SA primarily on the
basis that the enforcement of the restraint of
trade clause in the
employment contract would be unreasonable and is therefore
unenforceable. It is also contended by the respondents
that the
applicants have not proven that they have a proprietary interest
deserving of protection by the enforcement of the restraint
of trade
and confidentiality undertakings.
[7]. The case of
the applicants, in a nutshell, is that, during the course of her
employment with them, Ms Kleynhans acquired
knowledge of the
Opera
products, confidential information concerning pricing and
strategy, and, as one of the primary points of contact with the
applicants’
customers in respect of these services, developed
close customer connections which are invaluable to any competitor. In
her role
with HRS, Ms Kleynhans will use her skills, knowledge and
customer connections acquired during her tenure with Micros SA, to
breach
her restraint obligations in the territories in which the
applicants do business, to their material detriment.
[8]. Therefore, the
issues to be considered in this application is simply whether, in
time and space, the enforcement of the restraint
of trade agreement
would be unreasonable and whether the applicants can validly lay
claim to a proprietary interest deserving of
protection by the
enforcement of the restraint of trade and confidentiality
undertakings. In considering these issues, regard should
be had to
the applicable legal principles, which are well established, and
which I refer to briefly in the paragraphs which follow.
[9].
As a
general rule, agreements in restraint of trade are valid and
enforceable. Public policy under our constitutional dispensation
requires that contracting parties honour obligations that have been
freely and voluntarily undertaken – the principle of
pacta
sunt servanda.
The
exception to the general rule is that a restraint of trade
undertaking will be contrary to public policy, and therefore
unenforceable,
where it is unreasonable. And, as was held in
Reddy
v Siemens Telecommunications (Pty)
[1]
,
it is unreasonable ‘… if it prevents a party, after
termination of his or her employment, from partaking in trade
or
commerce without a corresponding interest of the other party
deserving of protection’. Whether it is reasonable or not
will
be determined with reference to the circumstances of the case.
[10].
The onus to
show that the enforcement of a restraint of trade undertaking is
contrary to public policy is on the person who agreed
to a restraint
of trade and later seeks to object to its enforcement. (
BHT
Water Treatment (Pty) Ltd v Leslie
[2]
).
In other words, it is the former employee who must prove the
unreasonableness of a restraint if she does not wish to be bound.
(
Flowcentric
Mining Technology (Pty) Ltd v Smit and Others
[3]
)
and this burden of proof is not easily discharged. (LAWSA, Contracts
in Restraint of Trade, at 253, relying on
Kemp,
Sacs & Nell Real Estate (Edms) Bpk v Soll
[4]
).
[11].
In casu
, the
restraint undertaking must be read in the context that it appears in
a contract of employment in which Ms Kleynhans is appointed
as Opera
Operations Manager and that the Opera software is provided by Oracle
distributors such as Micros, throughout the world.
This software is
focused specifically on the hospitality industry and Micros is the
entity within the Adapt IT Group which operates
in that sector.
Micros and Adapt IT operate within the SADC region and Indian Ocean
region, with the majority of their clients
in South Africa but also a
large base of customers in these other regions. Micros’
business is to distribute Opera software
which is provided by Oracle.
Micros provides support to customers who have purchased these
products through it.
[12]. Furthermore. It is
submitted by the applicants that the Opera products are complex
software which are bundled together to
meet particular customer
needs, and the customers require and obtain the services of a
distributor such as Micros precisely because
they do not have the
internal capacity to manage these products themselves. Therefore,
what differentiates a distributor and provider
of services such as
Micros SA is primarily its understanding of customer needs and its
ability to design and price an offering
made up of Opera products to
its customers. The purpose of the restraint of trade provision, so
the case on behalf of Micros SA
continues, is to protect its interest
in requiring its employees who acquire the knowledge of its product
and who must, as part
of their employment, develop strong customer
relationships, from utilising that knowledge and those connections to
offer the same
Opera products acquired from Oracle to the same
customer base in the areas within which the applicants operate.
[13]. There is, in my
view, merit in these submissions on behalf of the applicants. The
point is that Ms Kleynhans, in her capacity
as Director of Operation,
intends to be engaged in the setting up of HRS SA’s business in
South Africa. HRS SA is a direct
competitor of the applicants in the
hospitality industry and it intends to distribute Oracle Opera Cloud
products to customers
within the same areas in which the applicants
operate. These Opera Cloud products are precisely the ones that Ms
Kleynhans, on
her own version, has focused intensely on in her role
at Micros since 2020.
[14]. By all accounts, Ms
Kleynhans, in her position as Opera Operations Manager, has built up
close relationships with the applicants’
customers and has been
exposed to confidential information of the applicants in the form of
pricing, margins and discounts for
Opera products and strategy for
the transition to Opera Cloud. On the probabilities, there can be
little doubt that Ms Kleynhans’s
role at HRS SA will entail
that she will be in a position substantially similar to the one she
occupied at Micros SA. At a minimum,
her role will include the
management of HRS SA’s customer operations in relation to Opera
Cloud. As HRS SA is not yet operational,
and Opera Cloud is not yet
rolled out to larger hospitality clients, the management of customer
operations inevitably includes,
first, securing such clients and,
second, managing their transition to Opera Cloud. Ms Kleynhans is
perfectly placed to fulfil
these objectives.
[15]. In these
circumstances, I agree with the submission by Mr Franklin SC, who
appeared for the applicants with Ms Van Heerden,
that there is a
substantial risk that, should Ms Kleynhans be permitted to take up
employment with HRS SA, she will take to a competitor
–
providing the same product to the same target market in the same
territory – proprietary interests of the applicants
in the form
of trade connections and confidential information. Ms Kleynhans’s
conduct therefore falls squarely within the
scope of what the
applicants sought to protect against in the restraint undertaking.
There can be no serious debate about this.
The applicants are
entitled to enforce the restraint to ensure this protection.
[16]. It is moreover
inevitable that, if she should commence employment at a competitor in
the same industry as Micros SA, in the
same or a similar role, she
would use the confidential information obtained during her employment
as Opera Operations Manager at
Micros SA in violation of her
confidentiality obligations under the NDA.
[17]. As was held
recently by this court in
Flowcentric
, insofar as confidential
information is concerned, an applicant does not need to prove actual
breach, but merely the risk that
the information in the possession of
the first respondent, if disclosed, could be used to the disadvantage
of the applicant.
[18].
I am also
of the view that the applicants do indeed have protectable interests
in the form of customer connections and confidential
information. As
was held by this Court in
Experian
SA v Haynes
[5]
and
Sibex
Engineering Services (Pty) Ltd v Van Wyk
[6]
,
there are two kinds of proprietary interests that can be protected by
a restraint of trade undertaking. The first is ‘the
relationship with customers, potential customers, suppliers and
others that go to make up what is compendiously referred to as
the
“trade connections” of the business, being an important
aspect of its incorporeal property known as goodwill’.
And the
second is ‘all confidential matter which is useful for the
carrying on of the business and which could therefore
be used by a
competitor, if disclosed to him, to gain a competitive advantage’.
[19]. On the basis of the
facts in this matter, I am of the view that Ms Kleynhans has failed
miserably to discharge the onus on
her to prove the unreasonableness
of the restraint. She has not established that she never acquired any
significant personal knowledge
of, or influence over, the applicants’
customers, not that she had no access to confidential information,
whilst in Micros’s
employ. By all accounts, she has, through
her position as Opera Operations Manager, developed relationships
with a number of the
applicants’ larger clients in the
hospitality industry. A business’s customer connections is a
proprietary interest
that can be protected by a restraint of trade
undertaking.
[20]. What is more is
that Ms Kleynhans has developed relationships with customers of a
nature that she could induce them to follow
her to a new business.
The applicants set out in some detail the strength of Ms Kleynhans’s
relationships with the customers
of the applicants, developed in the
exercise of her duties as Opera Operations Manager. All of this
serves to show an employee
with the knowledge of the identity and
requirements of the applicants’ customers and who had regular
and repeated contact
with the customers so as to build up a
connection in the course of trade with them.
[21]. For all of these
reasons, I conclude that there can be no doubt that customer contact
exists and that Ms Kleynhans could exploit
these connections if
employed by a competitor. These customer connections form a part of
the applicants’ goodwill. It is
this interest that the
applicants are entitled to have protected by enforcing the restraint
of trade. On this basis alone, the
restraint should be enforced.
[22]. Additionally, the
applicants, in my judgment, also have a protectable interest in their
confidential information. In her position
as Opera Operations Manager
and as a member of the executive team in Micros SA, Ms Kleynhans has
been privy to confidential information
during her employment at
Micros SA that is central to the applicants’ hospitality
business and known only by a few people
within the business. The
information categories include Micros’s business strategy,
pricing, margins and discounts for Oracle
products.
[23]. I am
persuaded and therefore find that, as does HRS SA by Ms Kleynhans’s
own admission, Micros SA has confidential
information in the form of
business strategies, internal processes and trade secrets. The fact
that she does not intend retaining
or downloading the applicants’
information is irrelevant, both for establishing confidential
information as a protectable
interest and that she has breached her
obligations in this regard. The mere fact that the information may be
in a respondent’s
head and not in a document does not mean that
its unlawful disclosure cannot be interdicted.
[24]. So, for example, Ms
Kleynhans has been privy to how the applicants price their products,
and the discounts and the margins
that are applied. She is aware of
precisely how the applicants price products to customers after a
price has been negotiated with
Oracle. The discounts that Micros
obtains will not necessarily be the same as for other Oracle
partners. This information would
be useful for any competitor. In an
industry where the products sold are identical, core differentiating
factors for choosing one
distributor over another are the
relationships that one may have with that distributor and price
differentiation for packages.
A distributor who is able to give a
client the package that best suits their needs, because it knows the
intimate details of a
client’s requirements, and at a better
price than anyone else (because it knows the margins and discounts
that its competitor
will be discounting), will be at a substantial
advantage. Ms Kleynhans, through her position in Micros over the last
six years,
has this information at her fingertips. She would be in a
position to go to an existing or a potential customer and quite
easily
price the very same product at a cheaper rate in order to lure
the customer to HRS, with an identical service. She would know
exactly
how to ensure that HRS could (unlawfully) outbid Micros with
each and every customer.
[25]. For all of these
reasons, I come to the conclusion that the applicants have
protectable interests that are threatened by the
respondents and
which should be protect by the enforcement of the restraint and
confidentiality undertakings.
[26]. The next
issue which I need to deal with relates to the contention on behalf
of the Ms Kleynhans that the restraint
is overbroad in relation to
the period of restraint, the absence of a geographical area, and the
scope of restraint.
[27].
The
governing principle is that the extent of a restraint must be
coextensive with the legitimate interests that the applicants
seek to
protect. Insofar as duration is concerned, in my view, a period of
one year is on the face of it perfectly reasonable.
The general rule
of thumb is that the period should not be longer than is necessary to
enable the applicant to place a new person
in the position, to enable
that
person
to
become
acquainted
with
the
product
and
the
customers
and to make it plain to the customers that this new person is now the
one with whom they must interact. (
Den
Braven SA (Pty) Ltd v Pillay and Another
[7]
).
[28]. On the basis of
this principle, I find that the period of the restrain is not
unreasonably broad.
[29].
As regards
the geographical area, the restraint does not specify a particular
area in which it is to apply. That is not automatically
fatal, as the
respondents seem to suggest. In
BHT
Water Treatment v Leslie
[8]
the
restraint was world-wide. The applicant sought an interdict
restraining the respondent only in the areas in which it traded.
The
Court granted the relief, and held as follows: - ‘The
applicant, properly making a concession that the restraint is
geographically too wide, does not in my view concede that the
restraint is otherwise unreasonable, and I am of the view that the
onus of showing that enforcement of the cut down restraint is
unreasonable, remains on the respondent.’
[30]. This is precisely
what the applicants seek here. The point is simply that, even where a
respondent establishes that a restraint
may be broader than is
necessary or where an applicant seeks to narrow the extent of a
restraint, a Court may, in the public interest,
declare that only a
part of the restriction on trade be enforced.
[31].
In casu
, the
applicants ask that the restraint should only apply in the
geographical areas where they trade. That, in my view, takes care
of
the respondents’ point that the restraint is overly broad from
a geographical point of view.
[32]. As regards unlawful
competition, it is as submitted by Mr Franklin, that the reasonable
fear of unlawful competition on the
part of the second respondent
follows axiomatically now that I have found that the applicants are
entitled to enforce the restraint
and confidentiality undertakings. I
find myself in agreement with this submission.
[33]. First, the sharing
of confidential information among competitors is generally deemed
anti-competitive and therefore contrary
to our competition laws.
Where a competitor obtains confidential information from a rival,
that competitor commits a wrongful act
vis-à-vis its
competitor if it uses the information in its business to the
detriment of the rival. It is inevitable that,
once in HRS SA’s
employ, Ms Kleynhans will use, disclose or disseminate Micros’s
confidential information, in breach
of her confidentiality
undertakings. HRS SA would therefore be guilty of the delict of
unfair competition through the misappropriation
or use of
unlawfully-obtained confidential information of a competitor,
including pricing, strategic documents, consumer information,
in its
business.
[34].
Second, it
is unlawful for a party to intentionally and without justification
induce or procure another to breach a contract with
a third person.
This can include an inducement to an employee to terminate their
employment in breach of a restraint of trade.
(
Atlas
Organic Fertilizers (Pty) Ltd v Pikkewyn Ghwano (Pty) Ltd
[9]
;
Wholesale
Provision Supplies CC v Exim International CC and Another
[10]
).
[35]. For all of these
reasons, I am of the view that the applicants have made out a case
for the interdictory relief sought in
this application. In that
regard, I am persuaded that the requirement for a final interdict are
met,
to wit
(1) there is a clear right; (2) an injury is
reasonably apprehended; and (3) there is no other remedy available to
the applicants.
[36]. For all of these
reasons, the applicant’s urgent application should succeed and
they should be granted the relief claimed
herein.
## Costs
Costs
[37]. The general rule in
matters of costs is that the successful party should be given his
costs, and this rule should not be departed
from except where there
are good grounds for doing so, such as misconduct on the part of the
successful party or other exceptional
circumstances. See:
Myers
v Abramson
[11]
.
[38]. I can think of no
reason why I should deviate from this general rule.
[39]. I therefore intend
awarding costs in favour of the first, the second and the third
applicants against the first and the second
applicants.
## Order
Order
[40]. Accordingly, I make
the following order: -
(1) The applicants’
non-compliance with the Uniform Rules of Court be and is hereby
condoned and the matter is heard
on an urgent basis in terms of Rule
6(12)(a) of the Uniform Rules of Court.
(2) The first
respondent be and is hereby interdicted and restrained, for a period
of one year from the date of this order,
from: -
(2.1) Engaging in the
establishment, within the Republic of South Africa, Botswana,
Mozambique, Zimbabwe, Zambia, Angola, Malawi,
Lesotho, and Swaziland
(‘the SADC region’) and Mauritius, Seychelles, Reunion,
Mayotte and Madagascar (‘the Indian
Ocean region’), of
the second respondent’s business;
(2.2) Engaging in
the establishment of the business of any other firm within the
Republic of South Africa, and the SADC and
the Indian Ocean regions,
that competes directly or indirectly with the business of the first
and/or the second and/or the third
applicant;
(2.3) Engaging with
the second respondent as a shareholder, partner, director, or in any
other capacity, including as an employee,
within or providing any
services in regard to the second respondent’s business within
the Republic of South Africa, and the
SADC and the Indian Ocean
regions; and
(2.4) Engaging in
any other business that directly or indirectly competes with the
business of the first and/or second and/or
third applicant, whether
as a shareholder, partner, director, or in any other capacity, within
the Republic of South Africa, and
the SADC and the Indian Ocean
regions.
(3) The first
respondent be and is hereby interdicted and restrained from
disclosing, using or disseminating any information
of the first
and/or the second and/or the third applicant which has commercial or
trade value, whether technical or non-technical
information,
including but not limited to pricing, margins, merchandising plans
and strategies, customers, customer lists, purchasing
data, sale and
marketing plans, future business plans and any other information
which is proprietary and confidential to any of
the applicants for
her own benefit or for the benefit of any third party, including the
second and the third respondents.
(4) The second
and/or the third respondents be and are hereby interdicted and
restrained from:
(4.1) Employing the first
respondent in relation to its business within the Republic of South
Africa, and the SADC and the Indian
Ocean regions for a period of a
year from the date of this order; and/or
(4.2) Otherwise
unlawfully competing with the applicants, including through:
(4.2.1) interfering
with the first applicant’s contractual relationship with the
first respondent, whether by intentionally
inducing the first
respondent to breach her contract with the first applicant or
otherwise; and/or
(4.2.2)
misappropriating confidential information of the applicants received
unlawfully through the first respondent to advance
its own business
interests and activities.
(5) The first and
the second respondents, jointly and severally, the one paying the
other to be absolved, shall pay the first,
second and third
applicants’ costs of this Urgent Application.
# L R ADAMS
L R ADAMS
Judge of the High
Court of South Africa
Gauteng Division,
Pretoria
HEARD
ON:
22nd
August 2023
JUDGMENT
DATE:
1st
September 2023 – judgment handed down electronically
FOR
THE FIRST, THE SECOND AND THE THIRD APPLICANTS:
Adv
A E Franklin SC, together with Advocate E A Van Heerden
INSTRUCTED
BY:
Garlicke
& Bousfield Incorporated, La Lucia, Durban
FOR
THE FIRST RESPONDENT:
Advocate
Christo Van der Merwe
INSTRUCTED
BY:
Vince
Van der Walt Attorneys, Kempton Park.
FOR
THE SECOND RESPONDENT:
Advocate
A P Ellis
INSTRUCTED
BY:
Minnie
& Du Preez Incorporated, Kempton Park
FOR
THE THIRD RESPONDENT:
No
appearance
INSTRUCTED
BY:
No
appearance
[1]
Reddy v
Siemens Telecommunications (Pty) Ltd
2007
(2) SA 486
(SCA);
[2]
BHT
Water Treatment (Pty) Ltd v Leslie
1993
(1) SA 47
(W) at 52E-F;
[3]
Flowcentric
Mining Technology (Pty) Ltd v Smit and Others
(2023-059986)
[2023] ZAGPPHC 544 (11 July
2023)
at para 31;
[4]
Kemp,
Sacs & Nell Real Estate (Edms) Bpk v Soll
1986
1 SA 673
(O) 685-689;
[5]
Experian
SA v Haynes
2013
(1) SA 135
(GSJ) at para 17;
[6]
Sibex
Engineering Services (Pty) Ltd v Van Wyk
1991
(20 SA 482
(T) at 502D;
[7]
Den
Braven SA (Pty) Ltd v Pillay and Another
2008
(6) SA 229
(D) at para 55;
[8]
Footnote 2
supra
;
[9]
Atlas
Organic Fertilizers (Pty) Ltd v Pikkewyn Ghwano (Pty) Ltd
1981
(2) SA 173
(T) at 202E-H;
[10]
Wholesale
Provision Supplies CC v Exim International CC and Another
1995
(1) SA 150
(T) at 157A;
[11]
Myers v
Abramson
,
1951(3) SA 438 (C) at 455
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