Case Law[2025] ZAWCHC 28South Africa
SD Recruitment (Pty) Ltd v Wagner and Others (20987/2024) [2025] ZAWCHC 28 (29 January 2025)
High Court of South Africa (Western Cape Division)
29 January 2025
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## SD Recruitment (Pty) Ltd v Wagner and Others (20987/2024) [2025] ZAWCHC 28 (29 January 2025)
SD Recruitment (Pty) Ltd v Wagner and Others (20987/2024) [2025] ZAWCHC 28 (29 January 2025)
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sino date 29 January 2025
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
CASE
NO:
20987/2024
In
the matter between:
SD
RECRUITMENT (PTY) LTD
Applicant
Registration
number: 2011/114952/07
and
SIMONÉ
WAGNER
First Respondent
THE
COMPLIANCE BUREAU (PTY) LTD
Second Respondent
Registration
number: 2016/364420/08
IMMPLOY
RECRUITMENT AGENCY CC
Third Respondent
Registration
number: 2009/088597/23
JUDGMENT
PARKER,
AJ:
Introduction
[1]
In this urgent Application issued on 30 September 2024 which was set
down for hearing
on 24 October 2024, and postponed to the 13 November
2024, Applicant seeks an order requiring the First Respondent
(Wagner) to
comply with her restraint obligations for a period of 24
months from the date of this order, alternatively from 13 September
2024.
This it contends is in keeping with the provisions of the
Employment Contract (EC) which holds the restraint and
confidentiality
clauses whilst the Non-disclosure Agreement (NDA) is
on its own. Applicant seeks to enforce the confidentiality
undertakings made
by Wagner.
[2]
All three Respondents opposed the application. The Second and
Third Respondents
are cited as they may have an interest in the
outcome of the matter. Although not cited as a party, Applicant
mentions Solutions
for Africa (Pty) Ltd (hereinafter referred to as
“
Solutions”
) in the founding affidavit. A Mr
Tian Liebenberg deposed to a confirmatory affidavit on behalf of
Second and Third Respondents
as well as Solutions in his capacity as
Chief Executive Officer with Solutions. He exercises control over all
the companies within
the group controlling the Second Respondent and
the Third Respondent.
The
Applicant
[3]
The Applicant carries on business where it provides innovative
medical recruitment
solutions to more than one industry including the
hospitality industry. Its main focus is to provide innovative medical
recruitment
solutions to the public and private health sectors
throughout South Africa.
[4]
It professes to have an established track record in professional
medical recruitment
by delivering quality medical recruitment
solutions to help clients fulfil their recruitment needs and reduce
the cost and time
to recruit. According to Applicant, the medical
recruitment industry in South Africa is a niche market and very
small.
[5]
Relative to this matter, the services it renders are by providing
contract locum staffing
and the bulk of its medical recruitment
relates to the public sector. In efforts to secure work in the public
sector, the Applicant
has to tender and/or respond to requests for
quotations and in this regard it alleges that its margins, are of
critical importance,
and thereby a trade secret. Secondly, in the
private sector, the Applicant contends it had built up a relationship
with clients
over years and as such its customer connections are of
critical importance to it.
Issues
for determination
[6]
The issues are whether:
6.1
The matter is (a) urgent (b) the Applicant would not be able to seek
substantial redress
in the ordinary course; (c) the Applicant did
not delay in bringing its application;
6.2
The validity of the restraint of trade agreement;
6.3
The Applicant was entitled to enforce the confidentiality and
restraint of trade undertakings
because the First Respondent has
breached her confidentiality and restraint undertakings;
6.4
The Applicant has established the existence of a protectable
interest, if it is found that
the restraint is applicable;
6.5
The Respondents have harmed or prejudiced that interest;
Employment
[7]
It is common cause that Wagner was employed as the Applicant’s
Tender Administrator
since 28 July 2023. Her primary responsibility
was for sourcing new business through tenders and compliance
processes. Her last
day of employment with the Applicant was 13
September 2024.
[8]
It was argued by the Applicant that Wagner has intimate knowledge of
the information
used by the Applicant in tendering. More
specifically, she knows exactly the margins Applicant is using and
this knowledge
she will be able to use to the benefit of a competitor
of the Applicant - and to the detriment of the Applicant.
The
restraint of trade clauses
[9]
The relevant clauses of restraint of trade agreement are as
following:
“
2.
RESTRAINT
2.2
It is recorded that:
2.2.1 the
Employee has been employed by the Company and will continue to be so
employed for an indefinite period; and
2.2.2 in
the course of fulfilling his duties to the Company, the Employee:
a.
Has become and will continue to become intimately concerned with the
business
and affairs of the Company; and/or
b.
Has had and will continue to have access to the Company's trade
secrets; and/or
c.
Has acquired and will continue to acquire considerable knowledge and
know-how
relating to the Company and its business matters.
2.3
The Employee acknowledges that if he is not restricted from competing
with the Company as
provided for herein, the Company will potentially
suffer considerable economic prejudice including loss of custom and
goodwill.
The Employee further acknowledges that it is
essential for the Company to protect its interests. As such, the
Employee agrees
to restraint of trade undertakings which preclude the
Employee from carrying on certain activities that would be harmful to
the
Company's interests.
2.4
The Employee undertakes and warrants in favour of the Company and its
successors-in-title
or assigns that, for as long as he is employed by
the Company and for a period of 24 months from the terminate date
('the restraint
period'), he will not anywhere in the prescribed
area, whether directly or indirectly:
2.4.1
Render, or attempt to render, any prescribed services to or for the
benefit of any prescribed Client;
2.4.2
Solicit, interfere with, entice or otherwise attempt to draw away
from the Company any prescribed Client;
2.4.3
Solicit, interfere with, entice or otherwise attempt to draw away
from the Company any prescribed staff.
2.5
The Employee further undertakes and warrants in favour of the Company
and its successors-in-title
or assigns that, for the restraint
period, he will not anywhere in the prescribed area be directly or
indirectly interested, engaged,
concerned, associated with or
employed whether as proprietor, partner, director, shareholder,
employee, consultant, contractor,
financier, principal, agent,
representative, assistant, adviser, administrator or otherwise and
whether for reward or not in any
company, firm, business undertaking,
concern or other association of any nature which furnishes or
renders, directly or indirectly,
any form of prescribed services.
2.6
The Employee acknowledges that:
2.6.1 The
restraints imposed upon him in terms hereof are fair and reasonable
as to the subject matter, area and duration
and are reasonably
necessary to protect the proprietary interests of the Company, to
maintain the goodwill of the Company, and
are within the context of
the benefits to be derived by the Employee under this agreement;
2.6.2 The
provisions hereof shall be construed as imposing a separate and an
independent restrain, severable from the
rest of them, in respect of:
a.
Each month of the periods referred to;
b.
Every locality falling within the prescribed area;
c.
The categories and identities of persons falling within the
definition of prescribed
Client;
d.
The categories of and specific services falling within the definition
of prescribed
services;
e.
The categories and identities of persons failing within the
definition of prescribed
staff.
2.7
The Employee acknowledges and agrees that the restraints contained in
this clause are stipulations
for the benefit of the Company, of whom
any authorized person shall be entitled to elect whether to exercise
its rights hereunder
or not. It is specifically noted that a decision
not to act on such entitlement shall not alter the Company's right to
do so at
a later stage."
The
Non-Disclosure Agreement
[10]
Under the rubric of confidentiality, the restraint agreement provides
as follows:
"1.
CONFIDENTIALITY
1.1
The Individual acknowledges that in the course of their work with
and/or for the Company,
the Individual will be exposed to valuable
confidential and/or trade secret information of the Company. The
Individual agrees to
treat all such information as confidential and
to take all necessary precautions against the disclosure of such
information to
third parties during and after the term of this
Agreement.
1.2
The Individual acknowledges that trade secrets of the Company will
consist of, but will
not be necessarily limited to:
1.2.1 Technical
information: Methods, processes, formulas, compositions, systems,
techniques, inventions, machines, computer
programs and research
projects,
1.2.2
Business information: Customer lists, pricing data, sources of
supply, financial data and marketing production,
or merchandising
systems or plans, client database.
1.3
The individual understands that this Agreement does not and will not
prevent them from working
for any other entity subsequent to the
termination of their contract with the Company, but only prohibits
the individual from using
or disclosing any of the Company's
confidential and/or trade secret information."
1.4
The Individual agrees that if they commit a breach of any of the
provisions of this Agreement,
the Company shall have the right to
enforce this Agreement in any court having equity jurisdiction.
The Individual acknowledges
and agrees that any such breach of this
Agreement will cause irreparable injury to the Company and that
monetary damages will not
provide an adequate remedy to the Company.
In addition, the Company shall have any other rights and remedies
available at law or
in equity.
1.5
The Individual agrees to pay liquidated damages in the amount
of R100 000.00 for any violation of the covenant not to disclose
confidential
and/or trade secret information, whether contained in
this Agreement or any other agreement with the Company.
(my emphasis)
A
PROTECTABLE INTEREST
[11]
It is argued that Wagner, in the course of her employment with the
Applicant had substantial
ongoing exposure to highly confidential
information pertaining to the Applicant's business, including the
costing, the candidate
database, client information, and the margins
which is acknowledged by Wagner.
[12]
Therefore the Applicant argues, based on the protectable interest, it
has a clear right to protect
its proprietary interests especially in
respect of the margins which knowledge she would be able to undermine
the Applicant when
she submits tenders in competition with it. It
obtained the restraint undertakings from the First Respondent so as
to protect
it from the unpoliceable danger of her using or
communicating its trade secrets and confidential business information
to a competitor
in breach of the restraint agreement, as she is
currently providing her services to a company in control of a direct
competitor.
[13]
The competitiveness of the industry and the nature of the
confidential information concerning
the Applicant's business to which
the First Respondent was exposed to, are the reasons why the
Applicant secured the undertakings
contained in the restraint
agreement from her.
[14]
In addressing the alternative remedy available to Applicant, in so
far as the penalty provisions
contained in clause 1.5 are concerned,
even if Applicant was able to quantify its damages flowing from the
breach of the restraint,
there are no realistic prospects that the
First Respondent would have the means to satisfy a damages claim.
The
Respondents
[15]
First Respondent acknowledges and reaffirms her commitments under
Clause 15.3.1 (Employment Agreement)
and Clause 1.3 (NDA) to maintain
confidentiality and protect the company's trade secrets and
confidential information, which is
expressed in a detailed letter
addressed to Applicants Attorneys dated 26
th
September
2024.
Wagner
says she has never breached, and commits to never breaching, the
confidentiality undertakings, past, present, or future.
Regarding the
operation of the 'prescribed area' the restraint of trade clause
excessively restricts Wagner’s employment
opportunities,
covering the entire Republic of South Africa, which she believes is
unconstitutional. There is no clear justification
or legitimate
interest to warrant such a broad restraint, rendering it unreasonable
and overly restrictive. Furthermore, the 'prescribed
client' pertains
to her position as Compliance Manager employed by The Compliance
Bureau. The (TCB) prescribed services'
pertain to her current
role in the Audit Department, which is distinct from her previous
responsibilities with Applicant.
[16]
The thrust of the argument by Wagner is that the restraint of trade
clauses lacks:
16.1
Reasonableness: The clause must be reasonable in terms of duration,
geographical scope, and restricted activities.
16.2
Protectable Interest: Employers must demonstrate a legitimate
protectable interest to justify the restraint.
16.3
Constitutional Compliance: These clauses must comply with the South
African Constitution, specifically section
22, which protects the
right to choose a trade, occupation, or profession freely.
16.4
Balancing Interests: Courts balance the public interest in enforcing
agreements against the societal benefit
of allowing individuals the
freedom to trade and pursue profession.
[17]
Wagner concedes her exposure to confidential affairs of the Applicant
however, does not justify
the overly broad restraint of trade, which
disproportionately restricts her future employment opportunities.
[18]
The restraint of trade is unreasonable and the constitutionality of
the restraint, particularly
considering that geographical scope
(entire Republic of South Africa), lack of clear protectable
interests and the unbalanced restriction
on her right to choose her
profession.
[19]
Regarding the alleged theft of confidential information, Wagner
denied any wrongdoing, as there
is no evidence that she stole or
misused any confidential information, including client lists, contact
details, or financial information,
nor has she unauthorizedly taken
or shared confidential information. Furthermore, Applicant has failed
to make out a case of what
the confidentiality nature of the
information is that was breached. Alternatively, she contends that
the Applicant has not disclosed
the information in its founding
papers, and to the extent that any confidentiality that may have
existed has been eroded is now
post the application, in the public
domain, since Applicant did not seek protection when it shared the
confidential matter as it
simply proceeded to identify and disclose
the nature of the confidential information in its papers.
[20]
Of critical importance is, even if Applicant could establish a
contravention of the breach of
the confidentiality clause the
Applicant is met with a hurdle – the parties have agreed that
the damages Applicant may suffer,
is limited to an amount of R100
000,00. This means Applicant has to establish that in fact Wagner
breached the confidentiality
clauses of the employment agreement and
if it can do that, claim R100 000,00 from her. Applicant has
therefore essentially waived
the right to obtain an interdict as it
has circumscribed its harm in the form of agreed damages.
Urgency
[21]
It is common cause that the NDA and EC exists and that Wagner was
exposed to highly confidential
information. However, Wagner contends
that the inappropriate route of urgency was followed in circumstances
that does not render
it urgent because of the provisions of a penalty
clause in the restraint of trade agreement which therefore limits the
agreed R100
000 liquidated damages in the event there is a violation
of the covenant not to disclose confidential information and/ or
trade
secret information. Therefore, Wagner argues, Applicant have
limited that harm; they have identified what it will cost and
therefore
the Applicant’s remedy lies elsewhere. Applicant
should institute proceedings for the sum of R100 000.00 if they
believe
that she has breached the restraint, and as such they have
alternative remedies to obtain substantial redress in due course.
[22]
On the contrary Applicant argues that by virtue of the
competitiveness of the industry in which
it operates, the Applicant
had no alternative way to protect itself and its proprietary interest
against unlawful competition.
According to Applicant it learnt
on 16 September 2024 that Wagner took up employment with Second
Respondent who is a company closely
associated with a direct
competitor of the Applicant, namely the Third Respondent. On 19
September 2024 Applicant’s attorneys
addressed a letter of
demand to Wagner. This was met with opposition by First Respondent
attorneys in a correspondence dated 26
September 2024 denying
impropriety. The application was issued four days later and was
set down for three weeks from the
date it knew of Wagner’s
employment.
[23]
Wagner argues that Applicant has not explained the delay since the
date it bore knowledge of
her new employment. Her further reasons as
to why the matter is not urgent is that Applicant has not shown that
she is employed
by a direct competitor, it has failed to join her
current employer (TCB) or Solutions which Applicant identified as the
true competitor.
In the absence of such
prima facie
evidence
that Wagner have contravened the restraint, the application is not
urgent.
[24]
Regarding the non-soliciting - there is no evidence that she has
contacted any of Applicant’s
clients.
[25]
In respect of the breach of confidentiality, in terms of clause 7 of
the NDA Wagner, agreed to
the indemnification for any contravention
of the confidentiality clause to a maximum of a R100 000, 00 which
indemnification constitutes
substantial redress. Applicant has
decided to agree and limit its claim for a contravention of the
confidentiality clause to this
amount. There is no need for relief on
an urgent basis to enforce the alleged contravention of the
non-disclosure agreement.
[26]
According to clause 2.1.2 of the restraint clause in the employment
agreement, it is only effective
against her if she should be employed
by a client of Applicant. TCB has never been a client of Applicant.
Applicant has not
established that she has even attempted to
commit the conduct listed in clauses 2.4.1 - 2.4.3 of the employment
agreement. These
clauses prohibit Wagner from rendering services,
solicit Applicant's clients or attempt to draw away Applicant's
staff. In terms
of clause 2.5 of the employment agreement Applicant
has not shown that Wagner is currently employed in a position that is
direct
or even indirectly in competition with Applicant's business.
Lastly, in respect of the confidential information, Applicant has
failed to make out a case that she has used or disclosed
any of Applicant's confidential and/or trade information.
In
any event Wagner denies that there is anything confidential and/or
secret or unique about Applicant's business, whether it is
technical
or business information. Even if there was, Applicant has disclosed
such information with the launching of the application
and in so
doing no confidentiality attaches to the information as it is now in
the public domain.
Vendetta
[27]
Wagner states, the motivation for the application lies in a personal
vendetta and it seems to
be driven by Applicant's broader belief that
Solutions or the shareholder of the company harbours a personal
vendetta against Applicant,
particularly due to past conflicts
involving the CEO of Applicant. Mr Moosa for Applicant, acknowledged
to Wagner at her exit interview
that Applicant does not typically
enforce the restraint of trade clause unless circumstances warrant
it, and the primary concern
in this instance is the competitor's
targeting of Applicant, rather than any misconduct on her part. To
her this suggests that
Applicant's focus is less on Wagner’s
actions and more on an adversarial relationship with the competitor.
[28]
Applicant has not provided substantive grounds for doing so. It is
not sufficient to act based
on extraneous motivations, such as a
belief in a vendetta or personal conflict with a competitor. The law
requires that the party
seeking enforcement demonstrate a legitimate
basis, showing that she has in fact contravened or is likely to
contravene the relevant
contractual terms. Without evidence of an
actual or imminent breach of confidentiality or restraint, she argued
that the court
cannot be expected to grant relief simply to address
broader business or personal concerns. Judicial intervention must be
based
on genuine and justifiable concerns, not merely speculative
fears or ulterior motivations.
Unreasonableness
[29]
Wagner states in her opposing affidavit that, her new role at TCB is
vastly different from the
work she performed at Applicant. Her
current position focuses on governance, risk, and compliance, which
does not overlap with
the core business or operations of Applicant
and is distinct from the type of business Applicant conducts.
[30]
The nature of her responsibilities at TCB is removed from any
sensitive information she may have
had access to during Wagner’s
time at Applicant. TCB's focus on helping businesses enhance
efficiency through sound governance
frameworks does not directly
compete with Applicant's services.
[31]
Given the significant divergence in the nature of her role, the
enforcement of the restraint
would not serve any justifiable purpose
and would merely act as an unwarranted limitation on her ability to
exercise her constitutional
right to choose a trade or profession
under section 22. Thus, enforcing the restraint in this context would
be contrary to public
policy and should not be upheld.
Evaluation
[32]
As a general rule, agreements in restraint of trade are generally
enforceable, unless they are
unreasonable or unlawful and against
public policy. It must also be borne in mind that
courts should always
give effect to contracts entered into freely.
That is an established principle of our law of contract. It creates
certainty in
the commercial world. However, every person should, as
far as possible, be able to operate freely in the commercial and
professional
world. The Respondents in this matter therefore bear the
onus of showing that the restraint of trade clause is unreasonable,
unenforceable
and/or contrary to public policy.
[33]
Ordinarily a restraint will be unenforceable if it does not protect a
trade connection and/or
confidential information to which the
ex-employee was exposed. What the Applicant needs to show is that
there is confidential information
to which the employee had access to
and which she could transmit, if so inclined. It is not necessary to
show that the employee
has in fact used information confidential to
the Applicant.
[1]
[34]
Generally, a party seeking to enforce a contract in restraint of
trade need only invoke the contract
and prove a breach of its terms.
A Respondent who seeks to avoid the restraint then bears an onus to
demonstrate, on a balance
of probabilities, that the restraint
agreement is unenforceable, because it is unreasonable.
[2]
In Basson
[3]
the Court set out the
criteria for reasonableness.
[35]
The proprietary interest that can legitimately be protected by a
restraint generally speaking
has been held to fall into two
categories. The first is confidential information and the second is
the relationship with customers
whilst in the employ of Applicant.
[4]
This is not denied by Wagner.
[36]
Turning to case law Magna Alloys and Research (SA) (Pty) Ltd v
Ellis
[5]
stated the position in
our law with regard to agreements in restraint of trade, and the
principles enunciated therein have been
applied in a long line of
cases as succinctly captured in the Headnote as follows:
“
The position in
our law is that each agreement should be examined with regard to its
own circumstances to ascertain whether the
enforcement of the
agreement would be contrary to public policy, in which case it would
be unenforceable. Although public policy
requires that agreements
freely entered into should be honoured, it also requires, generally,
that everyone should be free to seek
fulfilment in the business and
professional world. An unreasonable restriction of a person's freedom
of trade would probably also
be contrary to public policy, should it
be enforced.
Acceptance of public
policy as the criterion means that, when a party alleges that he is
not bound by a restrictive condition to
which he had agreed, he bears
the onus of proving that the enforcement of the condition would be
contrary to public policy. The
Court would have to have regard to the
circumstances obtaining at the time when it is asked to enforce the
restriction.”
[37]
The principles set out in Magna Alloys were comprehensively re-stated
in Sibex Engineering Services (Pty) Ltd v
Van Wyk and Another
[6]
“
A contractual
restraint curtailing the freedom of a former employee to do the work
for which he is qualified will be held to be
unreasonable, contrary
to the public interest and therefore unenforceable on grounds of
public policy if the ex-employee (the covenantor)
proves that at the
time enforcement is sought, the restraint is directed solely to the
restriction of fair competition with the
ex-employer (the
covenantee); and that the restraint is not at that time reasonably
necessary for the legitimate protection of
the covenantee's
protectable proprietary interests, being his goodwill in the form of
trade connection, and his trade secrets.
If it appears that such a
protectable interest then exists and that the restraint is in terms
wider than is then reasonably necessary
for the protection thereof,
the Court may enforce any part of the restraint that nevertheless
appears to remain reasonably necessary
for that purpose.”
[38]
With regard to protectable interests, the court in Sibex
Engineering
[7]
defined
proprietary interests, in the context of a protectable interest
consisted of the relationships with customers, potential
customers,
suppliers and others that go to make up what is compendiously
referred to as the "trade connection" of the
business,
being an important aspect of its incorporeal property known as
goodwill. “
The
second kind consisted of 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 relative competitive
advantage. Such confidential material is sometimes
compendiously
referred to as "trade secrets".
[39]
In looking at protectable interests, Nestadt JA in Rawlins and
Another v Caravantruck (Pty) Ltd
[1992] ZASCA 204
;
1993 (1) SA 537
(A), at 541 C-H remarked that
:
“
The need of an
employer to protect his trade connections arises where the employee
has access to customers and is in a position
to build up a particular
relationship with the customers so that when he leaves the employer's
service he could easily induce the
customers to follow him to a new
business (Joubert General Principles of the Law of Contract at
149).”.
[40]
In the present matter, Wagner acknowledge that she voluntarily
entered into the employment contract
containing the restraint of
trade clause. Apart from asserting that the restraint of trade
clause cannot be enforced because
of her right to practice her trade
and earn a living would be negatively impacted as it would severely
prejudice her freedom to
be gainfully employed.
Constitutional
rights
[41]
Wagner’s career is negatively impacted if the restraint of
trade is operational against
her as it indicates a stifling of
competition albeit that according to her, her current employer is not
a competitor. Limiting
her occupation opportunities under these
circumstances cannot be justified. The methodology mandated by
s 39(2) of the Constitution
must be implemented whenever a dispute
about the validity of a restraint of trade agreement is before
Court.
[8]
With regard to
freedom to choose a trade, a restraint of trade clause being a
contractual term is subject to constitutional
rights. Courts will
invalidate and refuse to enforce agreements that are contrary to
public policy. Section 22 of the Republic
of South Africa
Constitution Act, 1996 provides:-
"Every citizen
has the right to choose their trade, occupation or profession freely.
The practice of a trade, occupation or
profession may be regulated by
law.
Conclusion
[42]
The test for a final interdict is trite. An Applicant must
establish a clear right, a reasonable
apprehension of immediate harm
if the relief sought is not granted, and a lack of a suitable
alternate remedy. Whilst it
is so that applications of
restraint are invariably urgent by their very nature.
[9]
However, because of the prevailing penalty clause, the
application has a hurdle. In any event the argument of the
prescribed area as being overly broad and restrictive in applying to
the whole of RSA with no clear justification or legitimate
interest
to warrant its application. Nothing turns on the time period
occasioned by the delay in bringing the application earlier
as
Applicant explained the delay. However, the application fails on the
issue of obtaining substantial redress in due course because
of the
penalty provision in the agreement.
[43]
To sum up, firstly on the law and on the facts Wagner is working for
a different company in a
different position as a general manager in
Compliance. She is not working for a competitor. The entire
application is premised
that Wagner used to do tenders and she will
come and do tenders now and then she will disclose the margins and
what profit Applicant
made. Furthermore, her denial that the
Applicant’s business was particularly innovative averring there
is nothing innovative
about canvassing medical personnel to register
on databases. Moreover, she denied that the “
medical
recruitment industry in South Africa is a "niche market and very
small"
and states that “
it is in fact a very
vibrant market and falls under the general umbrella of recruitment.
Almost all companies that focus on
recruitment would be able to
supply staff to medical facilities. While I understand that
there are certain nuances that are
particular to recruiting medical
staff, there is nothing unique or sophisticated about it
.”
[44]
Secondly, the damages that Applicant may suffer is limited to a sum
of R100 000.00 and therefore
its remedy lies elsewhere. Thirdly,
Applicant has failed to establish a breach of the confidentiality
clause. Lastly the
relief sought in terms of prayer 2.2 of the Notice
of Motion against Solutions cannot stand as Solutions was not joined
as a party.
In the result Applicant has failed to make out a case for
the relief it seeks.
Costs
[45]
There are no reasons for the costs not to follow the result. Save
for the wasted costs
of 24 October 2024
,
which
was occasioned by the First Respondent, who did not adhere to the
time frames of the Notice of Motion to file her answering
affidavit.
Neither was any condonation sought for the late filing of the
answering affidavit to adhere to the chosen dates and
times
[10]
.
Such costs are therefore awarded against the First Respondent on
scale B.
Order
[46]
Having heard counsel it is ordered
1)
The application is dismissed;
2)
The applicant is liable for the legal costs on a party and party
scale;
3)
First Respondent is liable for the wasted costs of the postponement
to 24 October 2024,
on scale B.
R
K PARKER
Ms
Acting Justice of the High Court
Western Cape Division
Appearances
Counsel
for Applicant:
Adv Marten Daling
Instructed
by:
Le Roux Sampson Inc. t/a S L Law
Counsel
for Respondents:
Adv Adrian Montzinger
Instructed
by:
E Rowan Inc.
Date
of Hearing:
13 November 2024
Date
of Judgment:
29 January 2025
This
judgment was handed down electronically by circulation to the
parties’ representatives by email.
[1]
Den
Braven SA (Pty) Ltd v Pillay & Another
2008 (6) SA 229(D)
This
judgment was dealt with in Mozart Ice Cream Franchises (Pty) Ltd v
Davidoff and Another 2009(3) SA 78(C) 83D-85B
[2]
Basson v Chilwan & Others
[1993] ZASCA 61
;
1993 (3) SA 742
(A)
[3]
(i)
Is
there an interest of the one party deserving of protection at
termination of the agreement?
(ii)
Is such interest being prejudiced by the other party?
(iii)
If so, does such interest so weigh up qualitatively and
quantitively against the interest of the latter that the
latter
should not be economically inactive and unproductive?
(iv)
Is there any other facet of public policy having nothing to do with
the relationship between the parties, but
which requires that the
restraint should either be maintained or rejected.
[4]
Prinsloo and Van Niekerk Labour Court Manuel 39 - 40
[5]
1984(4) SA 874 (A)
[6]
1991 (2) SA 482
(T) at 502 J - 503 B
[7]
Ibid at 502 D-E
[8]
Supra
Mozart
Ice Cream franchises (Pty) Ltd v Davidoff and Another
85G-H
[9]
Supra
Prinsloo Manual 38
[10]
Mamahule Traditional Authority v Mabyane & Others (2449/2021)
[2021] ZALMPPHC 19 (14 May 2021)
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