Case Law[2022] ZAGPPHC 779South Africa
Trysome Auto Electrical Engineering (Pty) Ltd v Mashaba and Another (38700/2022) [2022] ZAGPPHC 779 (7 October 2022)
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Trysome Auto Electrical Engineering (Pty) Ltd v Mashaba and Another (38700/2022) [2022] ZAGPPHC 779 (7 October 2022)
Trysome Auto Electrical Engineering (Pty) Ltd v Mashaba and Another (38700/2022) [2022] ZAGPPHC 779 (7 October 2022)
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sino date 7 October 2022
# IN
THE HIGH COURT OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO
: 38700/2022
DATE
:
2022-10-03
REPORTABLE:
NO.
OF
INTEREST TO OTHER JUDGES: NO.
REVISED.
7
OCTOBER 2022
In
the matter between
TRYSOME
AUTO ELECTRICAL
ENGINEERING
(PTY) LTD
Applicant
and
STANLEY
MASHABA
First Respondent
WBHO
CONSTRUCTION (PTY) LTD
Second Respondent
J
U D G M E N T
DAVIS
J
:
Introduction
[1]
The applicant, Trysome Auto Electrical
Engineering (Pty) Ltd (Trysome) renders services relating to
collision avoidance systems
for vehicles, also referred to as “the
products” in the restraint of Trade Agreement which forms the
subject-matter
of this urgent application. These services are
rendered to the second respondent, WBHO Construction (Pty)Ltd
(WBHO).
[2]
Until 29 July 2022, the first
respondent, Mr Stanley Mashaba (Mashaba) used to work for Trysome.
Since 8 August 2022, he is
employed by WBHO.
[3]
Trysome seeks to enforce a written
restraint of trade agreement against Mashaba alleging that Mashaba is
inhouse rendering the services
which Trysome rendered to WBHO in
breach of his restraint agreement. Mashaba denies this,
claiming he is merely employed
as a fleet manager. WBHO did not
oppose the application.
The
restraint of trade agreement
[4]
On 1 June 2016, Mashaba became employed
by Trysome as a technical trainer. His contract of employment
contained confidentiality
and restraint of trade clauses. As
this agreement had become superseded by a later agreement, Trysome
does not rely thereon.
[5]
On the same day, that is 1 June 2016,
Mashaba signed a separate extensive restraint of trade agreement.
In it Mashaba agreed,
after having made an extensive number of
admissions relating to the envisaged receiving of training and
acquisition of knowledge
of Trysome’s products, services and
customers, to, in addition to the customary restraint against working
for one of Trysome’s
competitors:
“
Not
directly or indirectly furnish any information or advice to any
prescribed customer or use any other means or take any other
action
which is directly or indirectly designed or in ordinary course of
business calculated to result in such prescribed customer
terminating
its association with the company or transferring its business to or
purchasing the prescribed services from any other
person than the
company or attempt to do so
.”
[6]
The reference
to “the company” refers to Trysome and “the
services” means the supply of specialised services
which
Trysome renders. WBHO is one of the “prescribed
customers” and at the relevant time, was one of Trysome’s
largest clients. The period of the restraint is for 24 months
after termination of employment. The area of the restraint
is
the Republic of South Africa.
[7]
From
18 January 2018, Mashaba had been employed by Trysome as an accounts
manager in terms of a new employment contract and subsequently
from 1
August 2021, as “Technical Service and Support Lead”.
These new contracts of employment did not contain
restraint of trade
clauses as the general restraint agreement of 1 June 2016 remained
operative
[1]
. This also
dispenses forthwith with Mashaba’s argument regarding novation
of agreements.
The
alleged breach and the evaluation of the allegations
[8]
The services
that Trysome renders at WBHO involves the supply, installation,
repair and upgrade of collision avoidance systems to
vehicles
operated by WBHO at one of Anglo American’s platinum mines
called Der Brochen. This is not in dispute.
[9]
Mashaba has
received extensive training during his employment at Trysome in
performing these services. By the end of his employment,
he was
instrumental to Trysome’s business at Der Brochen and provided
oversight and support to technicians on site.
Trysome’s
agreement with WBHO is to have a so-called MOS technician, that is a
“man-on-site” at Der Brochen,
in order to perform the
required technical services. This
inter
alia
included the maintenance of the older version of the units,
that is the QC235 units or replacing them with newer units.
Upgrades and repairs to the software of the units are done by way of
a “SM Tool” installed on a technician’s
laptop with
each programme and laptop registered in terms of Trysome’s sole
licence to provide this kind of work. Trysome
is in this
fashion a “single source supplier” of heavy duty auto
electrical collision avoidance systems in South Africa.
[10]
In terms of
the
Mine Health and Safety Act 29 of 1996
all mines are required to
have collision avoidance and proximity detection systems in place.
The units supplied by Trysome,
also referred to as a CAS system, are
GPS units that are installed on heavy commercial vehicles which warn
the operators of such
vehicles of obstacles in the immediate vicinity
so as to avoid collisions with such obstacles. The units are
produced and
supplied by Hexagon Mining Incorporated (Hexagon) for
which Trysome is a licensed distributor.
[11]
Mashaba left
Trysome’s employ on 29 July 2022. In terms of a letter
uploaded by Mashaba’s attorney, purportedly
in terms of
Rule
6(5)(e)
, WBHO had invited Mashaba already on 21 July 2022, to take up
employment at WBHO on 8 August 2022. His position would be that
of a “planner/technician”. Mashaba accepted this
invitation on 10 August 2022. A further letter from WBHO
confirms that Mashaba’s place of employment is at WBHO’s
“Plant North Department”, that includes its operations
at
Der Brochen.
[12]
Trysome was
initially unaware that Mashaba had taken up employment with WBHO.
On 27 July 2022, he had informed the business
unit manager of
Trysome, one Tania Bambrough that he would be resigning with effect
from 29 July 2022. During an interview
regarding his
resignation, he stated he did not have any other employment and
wanted to spend time with his family and on his farm.
He
requested a copy of his restraint agreement and was furnished
therewith. The documents uploaded by Mashaba’s attorney
indicate that Mashaba’s statement about no other offer of
employment, was a lie.
[13]
What alerted
Trysome that Mashaba might be acting in breach of his restraint of
trade agreement, was when Hexagon informed Trysome
on 17 August 2022,
that Mashaba was working for Trysome’s client, WBHO. When
Bambrough telephonically confronted Mashaba
on 18 August 2022 with
this allegation, Mashaba denied that he had taken up employment with
WBHO. The documents uploaded
by Mashaba’s attorney
indicate that this was another lie.
[14]
Subsequent to
this, a site agent at WBHO, copying a contract manager at WBHO, one
Scott Robertson, who was also the author of the
WBHO letter of 1
August 2022, sent two emails to Mashaba, inadvertently using his
Trysome email address, leading to Trysome gaining
knowledge of the
contents thereof. In these emails dated 23 August 2022, Mashaba
is referred to a spreadsheet containing
a list of vehicles in which
the CAS systems had been installed, some with the older QC235 units
and some with newer versions.
Mashaba was requested to change
some of the units on which he had been “working” and to
“sort out” other
units and to see to a list of new
installations.
[15]
The day after
the emails had been sent, Scott Robertson attended a virtual meeting,
also attended by Trysome and Hexagon.
Robertson informed
Bambrough that Mashaba will be performing installations of the
systems at the Der Brochen site. When Bambrough
informed
Robertson that Mashaba is not authorised to do so, Robertson moved to
a next topic. When confronted with these facts,
particularly
the emails referred to above, Mashaba in his answering affidavit
claimed to only being a fleet manager. The
other allegations
are met with an bald denial. Notably no affidavit by Robertson
or any employee of WBHO has been annexed.
[16]
More than a
decade ago the Supreme Court of Appeal in
Wightman
t/a JW
Construction
v Headfour (Pty) Ltd and Another
,
[2008] ZASCA 6
;
2008, (3) SA 371
(SCA) at paragraphs 12 and 13 explained that,
“
While
there may be instances where a simple denial of a fact might suffice,
but where detailed allegations are made and the answers
thereto
clearly lie within the personal knowledge of a respondent, his
failure to pertinently deal therewith, then raises no real
or bona
fide dispute of fact
.” This
is the situation here.
[17]
Elsewhere in
his affidavit, Mashaba alleges that due to a dispute between Hexagon
and Trysome originating in June 2022 and culminating
in July 2022,
WBHO became entitled to purchase units directly from Hexagon.
The minutes of a subsequent meeting between the
parties, including
Hexagon, being that of 13 August 2022, directly contradicts this
however. In yet another version Mashaba
alleges that WBHO is
entitled to purchase units from an erstwhile supplier of the older
version of the units, one Mintek.
There is no proof that this
contradictory statement, is true at all. It is also belied by
Trysome’s sole distribution
licence.
[18]
Irrespective
of the contradictions already contained in Mashaba’s answering
affidavit regarding the purchase of units, none
of these justify
Mashaba’s involvement in a business with one of Trysome’s
clients which take business away from Trysome.
Mashaba’s
woes were exacerbated when his counsel explained yet another version
during oral argument. This version had
apparently been obtained
from Mashaba during consultation. It is to the effect that the
contents of the emails referred to
above are nothing sinister, they
merely reflected the method by which Mashaba as a fleet manager was
alerted to units which required
attention. Not only was this
attempted presenting of evidence from the bar grossly inappropriate
and disallowed but it indicated
yet another reason why Mashaba’s
evidence in his answering affidavit should be rejected as palpably
false. He alternates
between either having nothing to do with
the units to only managing the units as a fleet manager to being
allowed to deal with
the units as WBHO is allegedly entitled to
purchase such units. And then he alternates between whether
such purchase would
be from Hexagon or from another supplier.
Added to these woes are Mashaba’s false statements regarding
taking up employment
at WBHO in the first place, as already referred
to above.
[19]
A last aspect
bears reference. It is Mashaba’s question posed in his
answering affidavit in rhetoric fashion, as to how he
could be
suspected of accessing units when he had handed in his laptop on
which the software, that is the SM Tool had been installed,
upon
leaving Trysome’s employ. Mashaba had however himself,
when he had some years previously, assisted Trysome in
enforcing a
similar restraint of trade agreement against yet another technician,
in detail explained how easy it is for a technically
skilled person
to copy the SM Tool software onto a personal laptop and to bypass the
licensing requirements.
[20]
There are a
number of other discrepancies in Mashaba’s versions in his
totally uncorroborated answering affidavit to the extent
that I am
convinced that Trysome had sufficiently indicated that Mashaba is
acting in breach of his restraint of trade agreement.
The
denials which Mashaba raised are therefore rejected.
Other
requirements
[21]
I
am similarly satisfied that the other requirements for a final
interdict have been satisfied. I point out that Trysome has
indicated that, should Mashaba be allowed to divert WBHO’s
business away from Trysome, it would suffer a loss in excess of
R5,6
million. This constitutes a clear indication of a measure of a
protectable interest which is as a result of the relationship
between
Trysome and its customers
[2]
.
[22]
The
other requirements relating to the enforcement of a restraint of
trade such as area or time period had not been seriously placed
in
dispute with Mashaba contending alternately that there is no binding
restraint in existence or that he is not breaching the
existing
restraint of trade in a fashion as set out above. Notably, the
enforcement of the restraint shall not deprive Mashaba
of his
employment particularly if restricted only to the fleet management
operations which he claimed he does. His constitutional
rights
of employment would therefore not be denied him other than by way of
the restriction to which he had agreed
[3]
.
[23]
Regarding the
issue of costs. It appears that WBHO is complicit in Mashaba’s
conduct. However, Trysome has elected
to only claim costs
against WBHO in the event of its opposition, which did not take
place. I see no cogent reason why the
normal rule should not
apply, namely that cost should follow the event as against the
unsuccessful respondent, that is Mashaba.
This case is further
one where a court should display its displeasure at the manner in
which a litigant has conducted his case.
It is sufficiently
clear as indicated above, that not only was Mashaba acting in breach
of the agreement but he was dishonest about
it and about his
employment with WBHO, including the nature thereof, not only towards
Trysome but also towards the court.
Such conduct justifies the
granting of a punitive costs order.
O
R D E R
[24]
The order is
as follows:
1.
The first
respondent is interdicted and restrained until 29 July 2024 from
directly or indirectly selling, supplying or otherwise
rendering to
the second respondent those services which the applicant sells,
supplies or renders to the second respondent, in particular
in
relation to installation, programming, maintenance and/or repair of
collision avoidance units for vehicles.
2.
The first
respondent is directed to delete any and all copies of the SM Tool
software described and defined in the founding affidavit,
that he has
in his possession or control.
3.
The first
respondent is ordered to pay the costs of the application with such
cost to include the costs consequent upon the employment
of two
counsel on the scale as between attorney and client
DAVIS
J
JUDGE
OF THE HIGH COURT
GAUTENG
DIVISION, PRETORIA
DATE
OF HANDING DOWN OF
JUDGMENT
:
3 OCTOBER 202
[1]
See
regarding the existence or co-existence of separate agreements:
National
Health Lab Services v Van
Vuuren
(2010/41313) [2020ZAGPJHC212] (10 September 2020)
[2]
See
in this regard
Rawlins
and Another v Caravantruck
,
1993(1) SA537 (A) at 541C-H
[3]
See:
Beadica
231 CC v Trustees, Oregon Trust
2020 (5) SA 247
(CC), discussing
Magna
Alloys and Research (SA) Ltd v Ellis
[1984] ZASCA 116
;
1984
(4) SA 874
(A).
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