Case Law[2025] ZAWCHC 179South Africa
Simah Risk Advisors (Pty) Ltd v Van Niekerk and Others (15110/2024) [2025] ZAWCHC 179 (29 April 2025)
High Court of South Africa (Western Cape Division)
29 April 2025
Headnotes
the applicant was entitled to enforce the written restraint of trade and confidentiality agreements (the ‘restraint agreements’) concluded with the first and second respondents. I said this because the applicant acquired the entire business and goodwill of the company that it acquired, coupled with a written
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Simah Risk Advisors (Pty) Ltd v Van Niekerk and Others (15110/2024) [2025] ZAWCHC 179 (29 April 2025)
Simah Risk Advisors (Pty) Ltd v Van Niekerk and Others (15110/2024) [2025] ZAWCHC 179 (29 April 2025)
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sino date 29 April 2025
THE REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
WESTERN CAPE DIVISION,
CAPE TOWN
Case No: 15110 / 2024
In the matter between:
SIMAH RISK ADVISORS
(PTY) LTD
Applicant
and
MICHIEL VAN
NIEKERK
First Respondent
ANNELI
JONKER
Second Respondent
MOUNTSURE BROKERS
(PTY) LTD
Third Respondent
Coram:
Wille, J
Heard:
16 April 2025
Delivered:
29 April 2025
JUDGMENT
WILLE,
J:
INTRODUCTION
[1]
Before me for adjudication are two applications. The first one
to be determined
is an application for leave to appeal at the
instance of the respondents. For clarity and ease of reference,
I will refer
to the parties as they were cited in the initial
restraint and confidentiality application. The second
application is at
the instance of the applicant. It is an
application for my initial order to be executed and complied with,
pending the determination
of any further appeal processes by the
respondents.
[1]
[2]
In summary, I granted relief against the first and second respondents
to enforce certain
written confidentiality and restraint of trade
undertakings entered into by the first and second respondents to
benefit the applicant.
In addition, concerning all the
respondents, I prohibited them from using the applicant’s
confidential information.
[2]
[3]
In addition, I found that the applicant's protectable interests
warranted the enforcement
of the confidentiality and restraint of
trade undertakings as far as the third respondent was concerned.
Accordingly, I formed
the view that the applicant was entitled to the
relief sought by it against the third respondent.
[3]
[4]
The applicant carries on business as a short-term insurance broker.
It acquired
this business from another discrete entity. The
effective date for implementing this business acquisition was over
two years ago.
The applicant purchased the short-term insurance
business and goodwill from this discrete entity and took over some of
its employees.
[4]
[5]
Thus, I held that the applicant was entitled to enforce the written
restraint of trade
and confidentiality agreements (the ‘restraint
agreements’) concluded with the first and second respondents.
I
said this because the applicant acquired the entire business
and goodwill of the company that it acquired, coupled with a written
cession concluded to the benefit of the applicant.
[5]
The
Leave to Appeal
[6]
I granted the initial order of restraint and confidentiality due to
an urgent application
about eighteen months ago. I handed down
my reasons only about three months after that due to unnecessary
procedural delays
caused by the respondents. A second
application for leave to appeal was filed at the end of last year,
and yet another amended
application for leave to appeal was allegedly
filed on the day of the hearing. This was done without
notifying the applicant.
[6]
[7]
I mentioned the delays at the instance of the respondents in my
reasons. I reference
them again as these delays are of some
moment and bear some influence regarding the reasoning in the
implementation application
launched by the applicant.
[7]
[8]
To give effect to my initial order the applicant launched an
implementation application
in terms of which the applicant seeks an
order that the operation and execution of my order is not suspended
and is enforceable
for the duration of the respondents’
application for leave to appeal and will continue to operate and be
executed in full,
until the determination of all present and future
leave to appeal applications and appeals that may be pursued.
[8]
The
first respondent
[9]
I held that the first respondent was an applicant employee. The
facts demonstrated
that the first respondent was an employee of the
applicant. The first respondent received a plethora of
correspondence from
the applicant’s attorneys and never took
issue with the assertion that the applicant employed him.
[9]
The
second respondent
[10]
On the facts, the second respondent was privy to and had extensive
knowledge of the applicant's
confidential information. I say
this because the second respondent established close and trust-based
relationships with the
applicant’s clients and solicited the
applicant's ‘clients’.
[10]
[11]
The second respondent asserted that she only did administrative work
for the third respondent.
It was and is highly improbable that
the second respondent was employed by the third respondent in an
innocent or neutral capacity.
I say this because of the
type of industry and because she was employed by the third respondent
together with the first respondent.
[11]
The
third respondent
[12]
Because the third respondent employed both the first and second
respondents, and there was no
challenge to the duration and area of
the restraint and confidentiality agreement, an order against the
third respondent was warranted,
and there is no prospect, let alone
any reasonable prospect, that an appeal court would find
otherwise.
[12]
The
grounds of appeal
[13]
As alluded to in my introduction, how this application for leave to
appeal has been chartered
is unfortunate. An applicant must
furnish the grounds of appeal relied upon to support the application
for leave to appeal.
Put in another way, it is incumbent upon
the applicant to state the precise grounds of appeal clearly and
succinctly. As
a matter of logic, this must be so, and the
remarks by Leach J are apposite when he indicated in detail what is
expected of an
applicant in these circumstances. The minimum
standard required is the following:
‘…
Accordingly,
insofar as rule 49(3) is concerned it has been held that grounds of
appeal are bad if they are so widely expressed
that it leaves the
appellant free to canvas every finding of fact and every ruling of
law made by the court a quo, or if they specified
the findings of
fact or rulings of law appealed against so vaguely as to be of no
value…’
[13]
[14]
The respondents’ grounds of appeal are not formulated concisely
or coherently. Further,
it is unclear on what basis the grounds
of appeal relied upon would satisfy the test for leave to appeal.
The complaints
by the respondents amount to a near repetition of the
same arguments advanced at the hearing of this application.
[14]
The
Section 18(3) Application
[15]
I directed that this application was to be heard together with the
application for leave to appeal,
and a timetable was set regulating
the further conduct of the matter. The respondents again failed
to comply with the periods
set out in the timeline. The
applicant’s counsel took no issue with this tardiness.
[15]
[16]
To succeed with this application, the applicant, in summary, must
demonstrate the following:
(a)
exceptional circumstances;
(b)
that the applicant will suffer irreparable harm if an order is not
made;
and
(c)
that the
respondents will not suffer irreparable harm if an order is made.
[16]
[17]
The determination of whether to grant an implementation order
involves the exercise of discretion
concerning all the facts.
The overarching enquiry is whether or not exceptional circumstances
exist, and
the presence or absence of irreparable harm, as the case may be, may
well be subsumed under the overarching exceptional circumstances
enquiry
.
A
less exacting approach to proof of exceptionalism is required; a
holistic test is to be adopted, not a hermetically sealed enquiry
to
be approached in a compartmentalised fashion.
[17]
[18]
The prospects of an appeal succeeding are relevant in determining the
requirements to assess
exceptionality and as a factor to be
considered when the court must exercise discretion.
[18]
[19]
If leave to appeal is refused and the respondents apply to the
Supreme Court of Appeal for leave
to appeal and in the unlikely event
that an appeal is then heard, the restraint periods will either have
expired or a substantial
period of the restraint periods will have
expired, rendering any judgment on appeal moot and the relief sought
by the applicant
enforcing the restraints of trade would be
forfeited.
[19]
[20]
In the interim, the respondents' continuing to act contrary to the
court order has caused considerable
harm to the applicant. This
conduct would continue to cause further damage and harm to the
applicant, which is not likely
to be realistically recoverable from
the respondents.
[20]
[21]
This must be assessed against the possible losses that the
respondents might suffer if the implementation
order is granted,
which losses (if they exist and are established) would, in all
likelihood, be ultimately recoverable from the
applicant.
[21]
[22]
I say this because despite an undertaking by the first and second
respondents to comply with
the initial court order, they are
breaching the order granted by this court. The respondents in
this application now repeat
and assert that they will abide by their
previous undertaking and will do so until the appeal process is
determined. What
is telling is that the respondents now allege
that they do not have any of the applicant's confidential information
and now take
issue with the terms of the court order in this
connection. The applicant contends that it cannot accept the
mere say-so
of the respondents regarding their allegation that they
do not possess any of the applicant’s confidential information
without
a court order in place to secure their rights.
[22]
Costs
[23]
In my initial order, an order was granted jointly and severally
against the first and third respondents
for the applicant’s
costs of and incidental to the application. Given the position
occupied by the second respondent
in the exercise of my discretion, I
did not make an order for costs against her. The second
respondent in these applications
has seemingly not paid any attention
to the reasons as to why no cost order was granted against her in the
initial order that I
granted. Further, it seems that none of
the respondents adhered to the terms of my court order. The
second respondent
did not demonstrate why a costs order should not
follow against her in the circumstances of these two fresh
applications.
[23]
Conclusion
and Order
[24]
The application for leave to appeal must fail, and the implementation
application, pending any
further steps in the appeal process, must
succeed. Thus, the following order is granted:
1.
The application for condonation for the respondents' late filing of
their answering
affidavits (such as it was) is granted.
2.
The application for condonation for the late filing by the
respondents of their
belated amended application for leave to appeal
(such as it was) is granted.
3.
The legal representatives of the respondents shall not be permitted
to recover
any costs or disbursements incurred in connection with the
late filing of the affidavits in the implementation application and
the late filing (non-filing) of the amended application for leave to
appeal.
4.
The application for leave to appeal is dismissed.
5.
The operation and execution of the initial order granted (under Case
Number 15110/2024
dated 30 July 2024) is not suspended and is
enforceable for the duration of the application for leave to appeal
at the instance
of the respondents, including any application to the
Supreme Court of Appeal and any further proceedings and will continue
to operate
and be executed until the final determination of all
present and future leave to appeal applications and appeals.
6.
The respondents jointly and severally (the one paying the other to be
absolved)
shall be liable for the costs of and incidental to the
application for leave to appeal and the implementation application on
the
party and party scale together with costs of counsel, following
Scale C.
E. D. WILLE
(CAPE TOWN)
[1]
The implementation application.
[2]
The third respondent was also interdicted concerning
certain ancillary relief.
[3]
A good case had been made out against the first and second
respondents.
[4]
The business it acquired was “Indiwe”, and it did so
“Lock Stock and Barrel”.
[5]
Indwe’s predecessor was Mountainview (Pty)
Limited.
[6]
This
is then the third application for leave to appeal.
[7]
The respondents after the hearing conceded that they had
not filed their amended application.
[8]
This will be referred to as the “implementation”
application.
[9]
In my view, there is no reasonable prospect that an appeal
court would find otherwise.
[10]
This was apparent from the papers.
[11]
There is no reasonable prospect that an appeal court would find
otherwise.
[12]
Section 17(1)(a)(i)
of the
Superior Courts Act, 10 of 2013
.
[13]
Songono
v Minister of Law and Order
1996 (4) SA 384
(ECD) at 385 E.
[14]
The amended application for leave to appeal was never properly filed
by the respondents.
[15]
The applicant’s counsel suggested the matter should be
disposed of without any further delay.
[16]
Section
18(1) read with
section 18(3)
of the
Superior Courts Act, 10 of
2013
.
[17]
Tyte Security Services CC v Western Cape Provincial Government and
Others 2024 (6) SA 175 (SCA).
[18]
University of the Free State v AfriForum and Another
2018
(3) SA 428
(SCA) para [14].
[19]
Incubeta Holdings (Pty) Ltd v Ellis 2014 (3) SA 189 (G
[20]
The
respondents have demonstrated their unwillingness to adhere to court
orders.
[21]
This is a concession that they were in breach of the terms of
the court order.
[22]
With this, I agree.
[23]
The second respondent seemingly aligned herself with these
applications.
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