Case Law[2024] ZAWCHC 168South Africa
Omni Software Solutions (Pty) Ltd and Another v Koekemoer and Others (19656/2023) [2024] ZAWCHC 168; [2024] 3 All SA 604 (WCC) (19 June 2024)
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Omni Software Solutions (Pty) Ltd and Another v Koekemoer and Others (19656/2023) [2024] ZAWCHC 168; [2024] 3 All SA 604 (WCC) (19 June 2024)
Omni Software Solutions (Pty) Ltd and Another v Koekemoer and Others (19656/2023) [2024] ZAWCHC 168; [2024] 3 All SA 604 (WCC) (19 June 2024)
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sino date 19 June 2024
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
and
SAFLII
Policy
IN THE HIGH COURT OF
SOUTH AFRICA
WESTERN CAPE DIVISION,
CAPE TOWN
CASE
NO: 19656/2023
In the matter between:
OMNI
SOFTWARE SOLUTIONS (PTY) LTD
First
Applicant
OMNI
SOFTWARE LIMITED
Second Applicant
and
KOEKEMOER,
ELMARIE
First Respondent
ANALYSIS
SUPPORT AND VENTURES (PTY) LTD
Second Respondent
KOORSEN,
MARIETTE
Third Respondent
KOORSEN,
GERT PIETER TIELMAN
Fourth Respondent
BEKKER,
JEREMIAS
Fifth Respondent
EPICODE
(PTY) LTD
Sixth Respondent
Before: The Hon. Ms
Acting Justice Mahomed
Heard: 03 June 2024
Delivered: 19 June 2024
JUDGMENT
MAHOMED, AJ:
[1]
This
is an
application for a temporary interdict which the first applicant
(“
Omni SA
")
and the second applicant (“
Omni
UK
”)
(jointly
referred to as “
Omni”
)
,
launched on 3 November 2023 for the following relief:
[1.1]
Pending final determination of the action
to be instituted against the respondents by Omni SA and Omni UK:
[1.1.1]
The first respondent, Ms Elmarie Koekemoer
(“
Ms Koekemoer
”),
second respondent, Analysis Support and Ventures (Pty) Ltd (“
ASV
”)
and sixth respondent, Epicode (Pty) Ltd (“
Epicode
”)
be interdicted from:
(a)
Unlawfully competing with Omni SA and/or
Omni UK by:
(aa)
Using any information which constitutes
proprietary and/or confidential information in connection with the
business of Omni SA and
Omni UK;
(bb)
Approaching, contacting, soliciting and/or
engaging with any of Omni's clients with a view to:
(i)
Inducing them to terminate their contracts
and/or dealings with Omni SA and/or Omni UK; and/or
(ii)
Securing them as clients for Koekemoer and
Koekemoer’s new employer, Epicode; and/or
(iii)
Representing to them directly or indirectly
that the Epicode’s system is identical and/or similar to Omni’s
products
and systems;
(cc)
Passing off the products, systems and/or
services offered by Koekemoer and Epicode:
(i)
As being those of Omni;
(ii)
As being related to and/or affiliated with
Omni;
(dd)
Holding themselves out and/or Epicode as
being affiliated with Omni;
(ee)
Offering the products, systems and/or
services which they offered to the public in a manner which is
confusingly similar to that
of Omni's distinctive set-up, software
and/or application layout;
[1.1.2]
Disclosing any of Omni's confidential
information, including, but not limited to, client lists, pricing
information, information
relating to the development and maintenance
of Omni’s systems, Omni Hotels, Omni iManage IT and/or Omni
Commercial and Health
Care to:
(a)
ASV;
(b)
Epicode;
(c)
Any third party.
[2]
Omni are to be directed to institute an
action against the respondents for final interdictory relief of the
kind mentioned in paragraph
1 above, as well as any other relief
which they might seek within 15 (fifteen) court days of the granting
of this order “
the action
”.
[3]
The costs of this application be reserved
for determination by the trial court in the action, save in the event
of opposition hereto,
in which case any party opposing this
application is to make payment of the costs thereof on a scale as
between attorney and client,
including the costs of two counsel,
where so employed.
[4]
The relief sought by Omni against ASV and
Bekker was settled prior to the hearing of the matter. At the
commencement of the
hearing, the counsel for Omni handed up a draft
order by agreement which I granted marked “
X
”.
COMMON CAUSE FACTS
The business of Omni
[5]
Over the course of 25 years, Omni UK
developed software for products and systems which could be used in
the hospitality industry
to assist the management of its clients,
thereby resulting in the saving of costs (“
the
products
”). The
development of these products came at tremendous cost to Omni UK.
[6]
During February 2020, Omni UK introduced
these products to South Africa with Omni SA being licenced to market
them to prospective
clients.
[7]
Omni UK’s ability to progress and
develop its software products arose out of its intricate
understanding of the various workflows,
traditional bottlenecks and
cost-saving possibilities capable of being achieved by the harnessing
of the correct software processes.
The system is now so
flexible that it has, in addition to the hospitality industry and
hotels, been used in fleet management, chemical
plants, shopping
centres, casinos and game reserves.
The relationship
between Omni and Ms Koekemoer
[8]
Omni UK and Ms Koekemoer had a history
dating back to 2005/2006 when Ms Koekemoer was a recruiter in the
United Kingdom and was
employed as a director of a recruitment
company which Omni UK started in 2011.
[9]
In late 2017/early 2018, Mr Riaz Ladha
(“
Mr
Ladha
”)
,
the deponent to Omni’s affidavits, visited South Africa at the
invitation of a friend, who was a successful hotelier.
During
the visit, he was introduced by his friend to the Chief Executive
Officer of Tsogo Sun, and through one of his regional
managers in
London, he was introduced to the Managing Executive of Bidvest
Prestige. The purpose of these meetings was for
Mr Ladha to
introduce Omni’s products to the South African market.
[10]
The companies were enamoured with the
systems and products which Omni UK offered and ultimately, Mr Ladha
concluded contracts for
these systems and products to be supplied to
the South African clients by way of a licence agreement.
[11]
Pursuant thereto, the South African clients
adopted and rolled out the Omni systems within their supply chain
which led to the conclusion
of contracts with Afriboom (Pty) Ltd
(“Afriboom”)
,
a specialised cleaning company in the Hospitality, Health care and
Food Hygiene and Contract Cleaning sectors, which had been
rendering
services to Tsogo Sun (Afriboom was subsequently acquired by CSG
Cleaning). Bidvest is a competitor of Afriboom
with both being
outsourced cleaning contract companies. Tsogo Sun/Southern Sun
are clients of either Bidvest or Afriboom.
Hotels that were
part of the Bidvest or Afriboom Group also contracted directly with
Omni SA and Omni UK.
[12]
Given the impending expansion of the Omni
business into South Africa, Mr Ladha offered Koekemoer the
opportunity of handling the
South African operations and in return
for her involvement, she was offered 20% shareholding in the South
African business and
salary equivalent to her local position.
Omni UK subsidised the establishment of Omni SA and all the costs
associated therewith.
Ms Koekemoer secured a significant 20%
ownership interest in the business without having to contribute
anything.
[13]
Ms Koekemoer was the sole director of Omni
SA. She was also the company representative and was responsible
for sales, training
and support of the systems in South Africa, as
well as managing and liaising with the South African clients.
[14]
Whilst Omni UK provided substantial
support, Ms Koekemoer was the
de facto
face of Omni SA and was responsible for hiring the trainers and
installers who had been trained by the Omni UK team. She
herself was trained in the UK on the Omni systems.
[15]
Given the level of responsibility given to
Ms Koekemoer, was the primary reason that she was offered a 20% share
of the South African
business.
[16]
Her responsibilities included that of two
staff and two branches in Johannesburg and Cape Town. She
recommended a package
of R118 000.00 per month for herself.
[17]
From approximately 2018 to 2020, the
business of Omni SA was doing well, so much so that Bidvest, one of
Omni SA's largest clients,
wanted to introduce the product to certain
banks and, in fact, introduced it to the Peermont Group Hotels.
This, in turn,
led to Peermont wanting to use the maintenance module
for its entire casino offerings.
[18]
Bidvest also wanted to start using the
system for health care. Discussions were had about adapting the
system for that purpose.
It was then decided to re-develop the
system, leading to the development of Omni Commercial, Facilities and
Maintenance and the
rebranding of Omni Clean to become Omni Hotels
given that it had new and additional features.
[19]
As the sole director of Omni SA, Ms
Koekemoer had fiduciary duties in terms of, amongst others, sections
76(3)(c) and 76(2)(a) of
the Companies Act, 71 of 2008 (“
the
Companies Act, 2008
”) as well
as the common law to act in the company’s best interest and
certainly not in conflict with them.
[20]
As part of the position in Omni SA, Ms
Koekemoer was also responsible for appointing employees.
The inter-relationship
between Ms Koekemoer and the remaining respondents
ASV
[21]
ASV is a company, whose sole director is
the fifth respondent, Mr Jeremias Bekker (“
Mr
Bekker
”). Mr Bekker started
ASV whilst employed by Omni SA and, after his departure from Omni SA
in February 2023, ASV now directly
competes with Omni SA.
[22]
According to Omni, Mr Bekker and Ms
Koekemoer have been friends for many years and that is particularly
important since Mr Bekker
is the director of ASV which is a direct
competitor of Omni SA. The history of how ASV came about and Ms
Koekemoer’s involvement
therein is discussed below.
The third and fourth
respondents
[23]
As regards to the third and fourth
respondents, they are Ms Mariette Koorsen
(“Ms
Koorsen”)
and Mr Gert Koorsen
(“Mr Koorsen”)
who are married to each other and both of whom were employed at Omni
SA by Ms Koekemoer.
[24]
Ms Koorsen is Ms Koekemoer’s sister
and Mr Koorsen is Ms Koekemoer’s brother-in-law.
[25]
According to Omni, even though the evidence
implicates Mr and Ms Koorsen in having acted with Ms Koekemoer and Mr
Bekker in pursuit
of a common purpose, no interdictory relief is
sought against Mr and Mrs Koorsen.
[26]
Regarding Mr Koorsen's knowledge and
expertise and experience, Mr Koorsen himself provided no information
regarding this. The information
provided in respect of Mr Koorsen
comes from Ms Koekemoer and Mr Bekker and is somewhat contradictory
in that:
[26.1]
According to Ms Koekemoer, Mr Koorsen has
no knowledge of computer engineering or software coding or any other
skills to steal information
from Omni but this notwithstanding, he
was able to tailor-make programs for Epicode to suit clients’
needs and that this
can be written in 2 – 3 days.
[26.2]
Mr Bekker, on the other hand, states that
Mr Koorsen worked for ASV as the head of development.
Epicode
[27]
Regarding Epicode, this company was
registered on 1 November 2023 but had been in existence as a shelf
company since 2 August 2023.
The director of Epicode is Ms
Koekemoer’s husband, Mr Leon Koekemoer and Mr Koorsen.
FACTS WHICH APPEAR TO
BE DISPUTED
[28]
The facts hereunder appear to be disputed
but the admissions made by Ms Koekemoer render them common cause.
[29]
According to Omni, Epicode is being used by
Ms Koekemoer and the other respondents as a front to conduct ASV’s
business, alternatively
to frustrate the Omni SA and Omni UK in their
pursuit of the relief sought in this application and that whilst Ms
Koekemoer holds
herself out to be a representative of Epicode and has
recorded that Epicode is a competitor of ASV, this is not true.
[30]
According to Omni, Epicode is peddling
ASV’s software and unlawfully competing with Omni.
[31]
It transpired that all of the employees of
Omni SA were family and friends of Ms Koekemoer with whom she had a
close relationship.
[32]
Omni UK’s Chief Operating Officer
(“
COO”
)
,
Ms Michelle Daniels (“
Ms
Daniels
”) also informed
Mr Ladha that the salaries being paid in South Africa as per Ms
Koekemoer’s recommendation to
Mr Ladha when she first joined
Omni SA was 30% higher than the market-related costs for such
salaries
[33]
Subsequent to Mr Ladha confronting Ms
Koekemoer about this, she effectively reduced all the respondents’
salaries by approximately
30%.
[34]
This culminated in Mr Koorsen leaving Omni
SA at the beginning of 2023; Mr Bekker resigning in or about February
2023.
[35]
Ms Koorsen’s employment was
terminated on 21 September 2023 as a result of her working for ASV at
the same time that she was
working for and being paid by Omni SA.
Details of which Ms Koekemoer denies having any knowledge of.
[36]
According to Ms Koekemoer, Mr Koorsen was
forced to leave after Mr Ladha instructed her to stop all casual
payments at the end of
January 2023. He accordingly stopped
being a casual for Omni SA at the beginning of February 2023; Mr
Bekker left the employ
of Omni SA at the end of March 2023 and Ms
Koorsen was summarily fired on 21 September 2023. Ms Koekemoer
denied that Ms
Koorsen was ever employed by ASV.
The decline of Omni SA
and the investigation that pursued
[37]
According to Omni, in early 2020, during
the advent of the Coronavirus outbreak due to the severe restrictions
that adversely affected
both tourism and travel, as well as the
hospitality industry, many of Omni SA's clients were affected. Omni
SA reached agreements
with these clients to suspend their services
and their obligations during the pandemic notwithstanding the
contractual provisions
that Omni SA might otherwise have been
entitled to enforce.
[38]
Omni UK utilised the pandemic and lockdown
period to develop Omni Commercial Health Care and Maintenance in
order that it could
provide a full suite of modules, as well as fine
tune the health care offering particularly for Bidvest.
[39]
As the effects of the COVID pandemic
started to subside, Ms Koekemoer started raising what Omni alleges to
be spurious concerns
about Omni systems and products, the services
which Omni SA was offering. These included,
inter
alia
, the following:
[39.1]
That the mobile phones which had been
rolled out to customers were deficient, this notwithstanding that Ms
Koekemoer had been the
one responsible for selecting the mobile
devices because the Omni systems have never been unable to operate on
mobile devices;
[39.2]
That Omni SA clients’ staff were
unable to use the mobile devices, although it was Ms Koekemoer and
her team’s job to
ensure that the training on the system of
adequate as part of Omni SA's obligations to its client;
[39.3]
That load shedding was crippling the
business because the networks were allegedly being lost, with Omni
SA’s clients losing
data as a result. After
investigation, this turned out to be false given that all mobile
phones work on SIM cards that would
automatically save the relevant
information to the hosted served. She also complained that there was
no “
offline capability
”
on the Omni SA system which was problematic.
[39.3.1]
According to Omni, Ms Koekemoer’s complaints regarding offline
capabilities and loadshedding were
simply wrong. Ms Koekemoer
was offered the opportunity to prioritise the offline development
over other development requirements
but she specifically requested
that other development requirements be prioritised over offline
development.
[39.3.2]
This was despite Ms Daniels given indications that offline
functionality development could be prioritised
over OHIP
functionality especially if load shedding had been as detrimental as
alleged.
[39.3.3]
No explanation was provided by Ms Koekemoer for why she declined the
offer to prioritise the offline
issue as this clearly required top
priority.
[39.3.4]
Ms Koekemoer admitted that she asked for OHIP to take precedence as
there was big contract that they
needed to retain but that she had
been insisting for years that the offline capabilities must be
addressed.
[39.3.5]
In fact, in Ms Koekemoer’s answering affidavit and during oral
arguments, she stated as one of
the major reasons for referring work
to ASV, as being the fact that Omni products do not have an “
offline
capability
”.
[39.3.6]
At no stage did she mention during the course of her argument that Ms
Koekemoer was offered the opportunity
to address the offline
capabilities as a priority, which she declined.
[39.3.7]
Ms Koekemoer saw it fit to refer clients to ASV simply because they
had offline capabilities when she
was well aware that Omni SA was
capable of developing offline capabilities for its products but she
has not explained why she refused
this offer.
[39.4]
Omni’s clients had complained that
the company’s prices were too high and when she was encouraged
to offer her clients
a free trial and to negotiate with the clients
in relation to pricing, rather than losing the client or prospective
business, she
failed to do so.
[39.5]
She insisted that “
extra
reporting requirements
” were
necessary. She complained Mr Ladha did not fully understand as
the systems are capable of generating 100 different
types of
reports. According to Ms Koekemoer, Omni’s clients were
not willing to log on to see the reports, but instead
required weekly
summaries.
[39.5.1]
According to Omni, it transpired that Ms Koekemoer and her team had
not been attending to supplying Omni’s
clients with proper
training despite numerous requests by the clients and reporting
required and it was for this reason that the
clients were unaware of
the systems reporting functionality.
The outcome of the
investigation that led to the resignation of Ms Koekemoer
[40]
Omni contends that on or about 21 September
2023, developments regarding the respondents and their conduct came
to their attention.
These primarily related to two of Omni SA’s
clients:
[40.1]
Kievits Kroon Wine Estate (Pty) Ltd and Mr
Wayne Hill, previously of Bidvest and more recently the PPLE Group.
The formation of ASV
[41]
Omni contends that subsequent to the recent
developments of 21 September 2023, it conducted an investigation into
Ms Koekemoer which
led to the discovery that Ms Koekemoer and the
respondents had:
[41.1]
Stolen Omni’s company proprietary
information;
[41.2]
Used same to establish ASV which was simply
a shelf company, and peddle to the public what they represented to be
a product and
system which ASV developed which was Omni SA’s
products; and
[41.3]
On that basis, wrongfully and unlawfully
diverted Omni’s customers to ASV to the detriment of Omni.
[42]
According to Omni:
[42.1]
Further investigations showed that ASV had
been established by erstwhile employees of Omni SA being Mr Bekker,
Ms Koorsen and Mr
Koorsen in 2021 whilst they were employed by Omni
SA. The systems and products which ASV offered to its clients is
either identical
or substantially similar to that of Omni SA, with
such systems and product offerings which had been developed by Omni
UK and Omni
SA over an extended period of time and at great costs;
[42.2]
Ms Koekemoer, Ms Koorsen, Mr Koorsen and Mr
Bekker, all of whom were employed by Omni SA, wrongfully, unlawfully
and intentionally
(while acting in concert and/or with a common
purpose) utilised the proprietary information and know-how which they
acquired while
employed at Omni SA to:
[42.2.1]
Copy its system and product offering;
[42.2.2]
Establish ASV and Epicode while Ms Koekemoer was a director and
employee of Omni SA and the others employed
by it; and
[42.2.3]
Divert Omni SA’s customers to ASV so that they could use the
former as a springboard to launch
the latter as a direct competitor
in the market. Simply put, what Ms Koekemoer and the
respondents did constituted unlawful
competition which had to be
stopped by way of this urgent application.
[42.3]
Ms Koekemoer breached her fiduciary duties
and failed to act in the best interest of the company but rather she
acted in conflict
with Omni SA. They allege further that the
respondents had the same obligations to Omni SA because they were
employees of
the company.
[42.4]
Ms Koekemoer’s conduct constituted a
breach of confidence as contemplated in
section 213
of the
Companies
Act, 2008
in that, while she was a director, and thus carrying out a
function under the
Companies Act, she
disclosed confidential
information to Mr Bekker at ASV and permitted ASV to access such
information. This also constitutes
a criminal offence as
contemplated in
section 216
of the
Companies Act, 2008
.
[43]
Ms Koekemoer, in her answering affidavit,
denies having played any part in ASV at all, be it unlawfully
misappropriating Omni SA’s
clients or deliberately causing Omni
SA to overcharge its clients and short servicing them to a degree
that drove the clients away
and simply directed them to ASV as a
substitute.
[44]
She states categorically that she never
directed any of Omni SA’s clients to ASV, but that on two
occasions she did refer
clients to ASV:
[44.1]
First, she was contacted by a cancelled
client asking whether Omni SA had obtained offline functionality to
which she informed them
that it had not and in that instance, she
referred that client to ASV;
[44.2]
Second, she was contacted by one Ms Adele
Esterhuizen of Tsebo who had a similar enquiry as they were
previously using Omni SA’s
software on a different site. Ms
Esterhuizen apparently could not continue with the Omni product now
that Tsebo had taken over
Kievits Kroon. In this case, she again
referred Kievits Kroon to ASV.
[45]
According to Omni, the following transpired
with regards to Kievits Kroon:
[45.1]
That Omni SA had an association with
Kievits Kroon and contracted with Afriboom (previously owned by CSG
Holdings Ltd), to outsource
cleaning services, and Omni SA was
rendering services to Afriboom.
[45.2]
On or about 15 September 2021, Kievits
Kroon terminated its outsourcing agreement with Afriboom.
According to Ms Koekemoer,
the reason for this was because Kievits
Kroon had not paid Afriboom an amount of R1.2 million.
[45.3]
The Tsebo Group took over as the contract
cleaners and at the time, Ms Koekemoer recommended the ASV software
to management at Kievits
Kroon.
[45.4]
Unbeknownst to Omni, by 19 August 2021, Ms
Koekemoer was already acting on behalf of ASV and engaging in
negotiations with Kievits
Kroon, represented by Mr Francois
Stemmelaar in order to secure a contract between ASV and Kievits
Kroon.
[45.5]
In terms of the e-mails exchanged between
Ms Koekemoer and Francois Stemmelaar, which e-mails contained ASV’s
signature, it
was clear that Ms Koekemoer was securing contracts for
ASV instead of Omni SA. This was not denied by Ms Koekemoer.
[45.6]
On 11 October 2021, the abovementioned
negotiations between Ms Koekemoer and Mr Stemmelaar culminated in a
licence agreement being
signed between ASV and Kievits Kroon on 3
February 2022, duly signed by Ms Koekemoer.
[45.7]
The Word version of the licence agreement
sent by Ms Koekemoer included a crib of the Omni SA licence
agreement. Ms Koekemoer’s
denied that she was ever
employed by ASV and yet, she signed the licence agreement between ASV
and Kievits Kroon for and on behalf
of ASV.
[45.8]
In her answering affidavit, she admits that
she signed the contract on request of Mr Bekker as he was out of
town, but denies that
she ever held herself out to be a director of
ASV and never meant to bind herself as such. She also denied
that the ASV licencing
agreement was a mirror image of the Omni SA
licencing agreement, despite the fact that the wording of the two
licencing agreements
are exactly the same. She also then
contends that since no proper power of attorney was given to her to
act on behalf of
ASV, the agreement was null and void.
[45.9]
In Mr Bekker’s answering affidavit,
he states that he was not aware of Ms Koekemoer ever holding herself
out to be a director
of ASV and that it was for her to explain.
He states further that on a few occasions he asked Ms Koekemoer to
send an e-mail
when he was out of town, that is all. As regards
the licence agreement, she states that he and ASV were not
responsible for
this document.
[45.10]
By September 2023, according to Omni, ASV
was failing to provide an efficient service to Kievits Kroon making
them more disgruntled.
Neither Ms Koekemoer nor any other
representatives of ASV were responding to Kievits Kroon’s
complaints satisfactorily and
this was told to Mr Ladha by Mr
Stemmelaar himself. What was significant was that Mr Stemmelaar
was directing his complaints
to Ms Koekemoer as he believed that she
representing ASV.
[45.11]
In an e-mail dated 20 September 2023,
whilst Ms Koekemoer was still in the employ of Omni SA and its
sole director, she addressed
an e-mail from Omni Software Solutions
e-mail address to Mr Stemmelaar advising that:
“
Please
note
Elmarie
is with ASV and no longer with Omni.
This is Omni’s e-mail address and no longer applicable to this
contract. Please delete this e-mail address on
your side and
update and use
software[…]
.
Kind regards
Elmarie
Koekemoer
”
(Emphasis added)
[45.12]
Ms Koekemoer’s response to this was
that Mr Stemmelaar’s had the mistaken impression that Ms
Koekemoer was employed
by ASV and he had emailed her a few times on
her work e-mail address at Omni. She decided that she had had it with
Mr Stemmelaar
and sent him the e-mail in an attempt to get him to
contact ASV and leave her alone. This response does not make sense.
Had
Ms Koekemoer wanted to get Mr Stemmelaar off her back, one would
think that her email would have read along the lines that: “
I
work for Omni. Kindly contact someone as ASV for assistance.”
The PPLE Group
[46]
According to Mr Ladha:
[46.1]
On 5 October 2023, he received an e-mail
from Mr Wayne Hill who was a customer of Omni SA, the PPLE Group,
wherein he enquired as
to whether everything was in order and whether
Omni SA was continuing its presence in South Africa. He did so
because he
informed Mr Ladha that Ms Koekemoer was “
onto
something else
” and that Mr Ladha
did not know;
[46.2]
He
immediately contacted Mr Hill to obtain clarity on the issue and it
appeared that during or about August and September 2023,
Ms
Koekemoer, writing from an e-mail address
software[…]
a
had
approached Mr Hill on behalf of ASV with a view to appropriating PPLE
as a client for ASV.
[47]
Ms Koekemoer admits the contents of the
e-mail thread between Mr Hill and herself wherein, she presents as a
representative of ASV
advising Mr Hill that she was keen to meet with
him in order to present ASV’s software. The systems and
functionality
which Ms Koekemoer was offering to PPLE on behalf of
ASV pertained to all of those company operations Omni SA was already
servicing
and which included, inter alia, time and attendance, stock
take, purchase orders, fleet management, audit systems, asset
management,
health and safety, housekeeping and hygiene management.
[48]
According to Omni, Ms Koekemoer made no
effort to conceal her involvement with ASV during the entire time
that she was the sole
director and an employee of Omni SA. This
constituted a breach of the fiduciary duties which she owed to Omni
SA in terms
of the
Companies Act, 2008
.
[49]
Pursuant to further investigations
conducted by Omni, the following transpired during October 2023:
[49.1]
Mr Bekker is the director of ASV;
[49.2]
Ms Koorsen is involved in installations and
support in respect of ASV’s product offering (while she was
still employed with
Omni SA) as evidenced by e-mails from Ms
Koekemoer;
[49.3]
Mr Koorsen was now Head of Development for
ASV;
[49.4]
That the ASV products functionality
mirrored the Omni SA products functionality;
[49.5]
Ms Koekemoer was involved in the
establishment and running of ASV whilst being a director of Omni SA
as evidenced by:
[49.5.1]
An invoice in respect of purchases for ASV relating to server
services;
[49.5.2]
An invoice in respect of Technomobi SIM cards;
[49.5.3]
An e-mail between Ms Koekemoer and Euro Cape in relation to enquiries
from a client regarding adding
functionality and in respect of which
Ms Koekemoer indicates that the client should contact Mr Bekker;
[49.5.4]
In an e-mail dated 29 August 2023, Mr Koorsen sent Ms Koekemoer a
copy of a report obtained from the
Omni system 6 months after he had
left Omni SA, that this evidence is that Mr Koorsen is clearly
accessing the Omni systems using
Ms Koekemoer’s login details
whilst working for ASV as Head of Development.
[50]
Ms Koekemoer admits that Mr Bekker is the
director of ASV but denies that Mr Koorsen was previously employed by
ASV, and states
that he is a director and the developer at Epicode.
This differs from what Mr Bekker says about Mr Koorsen. According to
Mr Bekker,
Mr Koorsen was the head of development at ASV and despite
now being a director of Epicode, he “
presently
”
does freelance work for ASV.
[51]
Ms Koekemoer denies being involved in the
establishment of ASV whilst being a director of Omni SA, even though
the dates of the
establishment of ASV, the signing of the licencing
agreement with Kievits Kroon and the e-mails sent to Mr Hill trying
to solicit
him as a client, all occurred during the tenure of Ms
Koekemoer as the sole director of Omni SA.
[52]
Ms Koekemoer also admits to paying the Vox
accounts as Omni SA paid for fibre for Ms Koorsen as she was working
from home.
However, the Vox accounts and the SIM card orders
were made out to ASV, not Omni SA.
[53]
As regards to the e-mail dated 29 August
2023 from Mr Koorsen to Ms Koekemoer attaching a report obtained from
the Omni system,
according to Ms Koekemoer this was in fact Ms
Koorsen sending her the document from Mr Koorsen’s previous
Omni SA e-mail
address.
[54]
Omni provided further information and
evidence in the form of e-mails which show that ASV had also poached
Holiday Inn, Rosebank
which was a client of Omni SA and which was now
a client of ASV.
[55]
In Omni’s replying affidavit, Omni
sets out further examples that date back from as far as 14 January
2021 with Ms Koekemoer’s
involvement with ASV and which
includes meeting invitations from Mr Bekker to Omni’s clients
like Topturf and Euro Cape with
the intention of poaching them where
Ms Koekemoer was invited to these meetings.
[56]
Even though Ms Koekemoer denies ever
attending these meetings, the issue that arises here is why was she
being invited to these
meetings in the first place when she was the
director of Omni SA. Ms Koekemoer does not seem to have provided any
explanation for
this.
[57]
Omni alleges that at the time when Ms
Koekemoer had resigned as a director and an employee and was put on
notice, she was required
to do a handover to one Mr Maharaj Dees of
Omni UK.
[58]
During the course of the investigation
subsequent to Ms Koekemoer’s resignation, Omni found an e-mail
where Ms Koekemoer had
e-mailed from her work e-mail address to her
private e-mail address, all personal details and confidential
information including
customer details and client lists of Omni SA to
herself.
[59]
Ms Koekemoer’s reply to this, in her
fourth set of affidavits to this allegation, was as follows:
“
In
my messages whilst compiling the handover I informed Maharaj that I
am using 2 PC’s and that I am e-mailing documents between
my
work and my personal e-mail.
”
[60]
She makes reference to a WhatsApp message
that she forwarded to Mr Maharaj and if regard is had to the WhatsApp
message, it states
the following:
“
Working
on two PCs to include Annelie’s details also so you have
details that the support team used before, because quicker
to search
and type through masses of info from any e-mail, Annelie’s PC
and Mariette who feeds info to so you will see that
I
forward from my personal email some stuff and work e-mail to
.
Hope it is ok.
” (Emphasis added)
[61]
The submission made by Ms Koekemoer’s
counsel regarding these averments is that because Ms Koekemoer was
working off two PCs,
she had to forward her work e-mails to her
personal e-mails in order to compile a report for handover.
[62]
This is not what the first respondent
states in either her fourth affidavit or her WhatsApp message to Mr
Maharaj. What she
does say to Mr Maharaj is that she will
forward e-mails to him from both her personal e-mail and her work
e-mail since she has
to collate information from Annelie and Mariette
as well.
[63]
The submission made by Ms Koekemoer’s
counsel in this regard was therefore inaccurate and differed
toto
caelo
from what is in fact stated by
the first respondent under oath.
[64]
According to Omni, while Ms Koekemoer
denies having played any part in ASV unlawfully misappropriating Omni
SA’s clients,
she also deliberately caused Omni SA to
overcharge its clients in breach of the price ranges adopted by the
company and then following
that through by short servicing them to
such a degree that she drove the clients away and simply directed
them to ASV as a substitute.
[65]
Ms Koekemoer denies these allegations but
provides no explanation for her actions suffice to say that she
always acted in the best
interests of Omni SA.
[66]
According to Omni, Ms Koekemoer and the
respondents were:
[66.1]
Stealing from Omni SA and Omni UK
information and know-how necessary to create a product for ASV and
establishing ASV as a competitor;
[66.2]
Product offering and diverting clients from
Omni SA to ASV;
[66.3]
Failing to service Omni SA clients in order
that they would become frustrated and then recommending such clients
that they utilise
ASV.
[67]
Ms Koekemoer again denies these
allegations.
[68]
She avers that:
[68.1]
Ms Koorsen was never the head trainer and
installer at Omni SA but rather the trainer and installer support.
[68.2]
Mr Koorsen has no knowledge of computer
engineering, software coding or any other skills to steal information
from Omni SA. He was
merely a casual installing the software on the
devices and handing these over to the customers.
[68.3]
Mr Bekker, on the other hand, appointed Mr
Koorsen as head of development at ASV.
[68.4]
During argument, Ms Koekemoer’s
counsel was at pains to explain that there was no reason for any of
Omni’s staff to
ever access the Redmine digital platform as
they were not developers of any products and that Omni SA essentially
signed the licence
agreement between Omni SA and the client, provided
the mobile phone with the application and trained the clients on how
to use
the product.
[68.5]
She mentioned that the Tuesday meetings
were development meetings and that except for one occasion where Mr
Bekker attended, none
of the other respondents were ever at these
Tuesday meetings.
[68.6]
In argument, Ms Koekemoer’s counsel
also stated that the product that ASV and Epicode sell is different
to the product that
Omni sells in that they sell a bespoke
application that is specifically designed for the needs of a
particular client, each application
is unique to the client’s
needs and they have offline connectivity. What is not explained is
why ASV used the exact same
licensing agreement as Omni if their
product was so different to that of Omni.
The relief sought
against Epicode
[69]
Ms Koekemoer contended that nowhere in the
founding affidavit does Omni make out a case against Epicode and that
this arises for
the first time in the replying affidavit.
[70]
According to Omni, Epicode started after
the resignation of Ms Koekemoer.
[71]
In addition to what Omni says about Epicode
in its description of Epicode as the sixth respondent, Omni also
contends that both
ASV and Epicode have appropriated Omni’s
clients and that there exists a risk that Omni will, prospectively,
lose more, if
not all, their clients if Ms Koekemoer and the
respondents are permitted to continue in the manner as they have
been.
[72]
What is not contested is that Mr Pieter van
der Westhuisen of Afriboom became a close friend of Ms Koekemoer over
the years while
she was at Omni SA and when Afriboom was a client of
Omni SA.
[73]
As for the Capital Group, four days after
Ms Koekemoer left Omni SA, there is an email trail confirming that
the Capital Group will
be transferring to Epicode and Ms Koekemoer
reverting with dates. Omni contends that it is inconceivable
that such preparation
only commenced after Ms Koekemoer left Omni and
that this must have started whilst she was still at Omni SA. Ms
Koekemoer
has not denied this in her fourth set of affidavits.
[74]
Ms Koekemoer admits that Afriboom and the
Capital Group are now clients of Epicode. She, however, denies
approaching these clients
and contends that the clients approached
her after she left Omni.
[75]
Omni, on the other hand, contends that
notwithstanding the undertaking which Ms Koekemoer gave in terms of
which she undertook not
to approach the clients of Omni SA and Omni
UK, that she proceeded to do just that and that is how Epicode landed
both Afriboom
and the Capital Group as clients. According to Omni, Ms
Koekemoer had approached both of these whilst she was employed with
Omni
SA.
ISSUES TO BE
DETERMINED
[76]
The issue in dispute is whether Omni SA and
Omni UK have satisfied the requirements for an interim interdict
against Ms Koekemoer
and Epicode arising from unlawful competition
perpetrated by way of:
[76.1]
Using confidential and proprietary
information belonging to Omni;
[76.2]
Approaching and soliciting Omni’s
clients in South Africa and the United Kingdom; and
[76.3]
Passing off the products, systems and/or
services offered by Koekemoer and Epicode as being those of Omni
and/or as being related
to and/or affiliated with Omni.
The Undertaking
[77]
Ms Koekemoer provided Omni with essentially
two undertakings:
[77.1]
On 10 October 2023, Ms Koekemoer gave Omni
an undertaking that she will henceforth:
[77.1.1]
no longer hold herself out as a director or
employee or representative of Omni nor do anything to damage or
impair their reputation;
[77.1.2]
not hold herself out as a representative of
ASV, nor pass off ASV nor allow ASV to be passed as an entity
associated with Omni or
otherwise associate herself with ASV;
[77.1.3]
return to the company the laptops, cellular
phones and tablet computer belonging to Omni as soon as all of the
same was received
by her via courier.
[77.2]
In her answering affidavit, Ms Koekemoer,
under oath, in both her personal capacity and on behalf of Epicode,
undertook to not approach
any of Omni's clients in South Africa or
the United Kingdom.
[78]
According to the Omni:
[78.1]
They are satisfied with the undertaking by
Ms Koekemoer, in her answering affidavit in her personal capacity and
on behalf of Epicode
that she will not approach any of Omni SA or
Omni UK clients;
[78.2]
They are not satisfied that the undertaking
is insufficient insofar as passing off is concerned and they seek all
the relief in
the notice of motion as set out above.
LEGAL FRAMEWORK
Unlawful competition
[79]
It
is settled law that unlawful competition gives rise to two causes of
action, namely a delictual claim for damages and/or a claim
for
interdictory relief; and the applicant is obviously at large to
pursue those remedies against the respondents if so minded.
In
this regard, the
locus
classicus
on
the remedies available in cases of unlawful competition is
Dun
and Bradstreet (Pty) Ltd v SA Merchants Combined Credit Bureau
[1]
,
where the court stated the following:
“
Reverting
to the position in our law and
without
attempting to define generally the limits of lawful competition,
it seems to me that where, as in this case, a
trader has by the exercise of his skill and labour compiled
information which he distributes
to his clients upon a confidential
basis (i.e. upon the basis that the information should not be
disclosed to others), a rival
trader who is not a client but in some
manner obtains this information and, well knowing its nature and the
basis upon which it
was distributed, uses it in his competing
business and thereby injuring the first mentioned trader in his
business, commits a wrongful
act vis-à-vis the latter
and
will be liable to him in damages
.
In an appropriate case, the plaintiff trader would also
be
entitled to claim an interdict against the continuation of such
wrongful conduct
.
The
fact that the information is distributed in a confidential basis to a
limited class of people prevents it from becoming public
property
capable of being used or imitated by rival traders. In such
circumstances, the conduct of a rival trader who obtains and,
well
knowing the position, uses the information to advance his own
business interests and activities amounts to a deliberate
misappropriation
of the products of another's skill and labour.
Such
conduct must, in my view, be regarded as
dishonest and as constituting a fraud
Upon the compiler of the information
”
[emphasis
added]”
Using confidential and
proprietary information belonging to Omni
[80]
One of the main issues for determination in
this matter is whether the information which Ms Koekemoer, Mr
Koorsen, Ms Koorsen and
Mr Bekker were all privy to whilst being
employed with Omni SA constituted confidential information and
whether they all, in particular,
Ms Koekemoer, used it even after her
resignation in order to promote the business of Epicode to the
detriment of Omni’s business,
then that would constitute
unlawful competition.
[81]
According to Omni, its confidential
information comprised of client lists, pricing information and Omni’s
databases
(“
confidential
information
”).
[82]
In
Cambridge
Plan AG and Another v Moore and Others
[2]
,
the court held as follows:
“
There
is authority that a party to a fiduciary relationship may not make a
list of customers during the currency of their relationship
for the
purpose of using it to the detriment of the other party after the
relationship has been terminated. In Pelunsky & Co.
v Teron
1913
WLD 34
, the defendant when he knew he was going to leave the
plaintiffs employee, took a copy of a list of customers for use in a
business
he was setting up for himself. In awarding damages against
him, the court extracted the principle from the English decisions
that:
‘
Speaking
generally, a servant is not entitled to use information which he
gained in his masters employment in any way inconsistent
with good
faith. This applies to information which he has honestly acquired
during the course of the service on his master's behalf-
a
fortiori
it applies to information
acquired from his master in the course of his employment without his
master's knowledge.’
This
message was quoted with approval in
Coolair
Ventilator Co SA (Pty) Ltd v Liebenberg & Another
1967 (1) SA 686
(W) at 690.”
[83]
Legitimate
competition in trade normally entails infringement of a competitor’s
right to goodwill
[3]
. It
is only when the infringement is regarded as wrongful that we talk of
unlawful competition. Filching confidential information
of a trader
to promote the interests of another to his prejudice, is one of the
instances that are recognised by our law as unlawful
competition, and
that trader needs no restraint of trade contract to obtain protection
against such unlawful conduct. The position
was put as follows in
Easyfind
International v Instaplan Holdings
[4]
:
“
What
is clearly established in our law is that it is unlawful for a
servant to take his master’s confidential information
or
documents and use them to compete with the master.”
[84]
Confidential
information is, broadly speaking, information that is meant for the
exclusive use of a trader and circulates within
the confines of such
trader’s business. It is not readily available to the
public or, as it is generally expressed,
it is not public knowledge.
The position was stated as follows in
Van
Castricum v Theunissen and Another
[5]
,
where the court held that:
“
The
information must have the necessary quality of confidence about it,
namely it must not be something which is public property
and public
knowledge.”
[85]
Whether
the requirements for confidentiality have been met is an issue to be
decided with reference to the facts of the particular
case. But
there are certain factors that would point to the confidential nature
of the information. Usefulness to a
rival is one such factor in
the sense that the information would give him/her an advantage over
the trader from whom the information
comes. The presumption of
confidentiality would be even stronger where an employer’s
information divulged by his/her
employee has in fact been used by a
rival to the detriment of the employer
[6]
.
[86]
Our law also recognises certain categories
of information or documents as being of a confidential nature.
[87]
A
customer’s list is one such type of document
[7]
.
In
Easyfind
(supra)
[8]
,
it is categorically stated:
“
Customer
lists certainly are confidential information.”
[88]
There is also no evidence at all pertaining
to the:
[88.1]
The amount of money that Epicode spent in
order to develop its product;
[88.2]
Who assisted Epicode to develop its
product;
[88.3]
Ownership of its software;
[88.4]
The functionality of its software and the
product; and
[88.5]
How Epicode managed to develop this product
when until at least November 2023, it was a dormant company.
[89]
From the facts as set out above:
[89.1]
It is clear that Ms Koekemoer and Mr
Koorsen were all involved in filching Omni’s client lists and
also utilising Omni’s
Licencing Agreement, somewhat
shamelessly, and then denying that it was the same document and that
it was, in any event, not confidential.
[89.2]
It is clear that the argument by the
counsel for Ms Koekemoer and Epicode, that Epicode is not a
competitor of Omni is, to put it
mildly, devoid of any merit and can
be summarily dismissed.
[90]
Epicode clearly competes with Omni in terms
of the products that were developed by Omni at great expense. Ms
Koekemoer’s evidence
regarding the development of Epicode’s
products is very unclear, unsubstantiated by Mr Koorsen himself and
is contradictory
to that of Mr Bekker particularly in relation to Mr
Koorsen’s abilities.
Passing off of Epicode
products as that of Omni
[91]
I agree with Omni’s submission that
given the fact that Ms Koekemoer has always been the “
face
”
of Omni SA, it can be accepted that the two clients which Epicode
solicited from Omni, were lured with Epicode’s product
being
passed off as that of Omni alternatively that such product is
affiliated with Omni.
[92]
Ms Koekemoer’s contentions that two
of Omni’s clients came to Epicode of their own accord and were
not lured by her,
is somewhat difficult to digest, given her previous
conduct with ASV and her display of the same conduct in favour of
Epicode to
the detriment of Omni. What is clear is that whilst she
was the sole director of Omni, she referred Omni’s clients to
ASV
and that she is still actively luring away Omni’s clients
with products supplied by Epicode.
Solicitation of Omni’s
clients
[93]
In light of Ms Koekemoer’s
undertaking in this regard, it is not necessary to address the legal
principles pertaining to solicitation
of clients as an act of
unlawful competition. Suffice to say that the facts above explain why
Ms Koekemoer gave the undertaking.
The requirements for
an interim interdict and whether Omni has satisfied these
requirements
[94]
The relief sought by Omni is analogous to
that of a temporary interdict, which requires Omni to show that:
[94.1]
The right which is the subject matter of
the main action and which they seek to protect is a clear or
alternatively
prima facie
right established though open to some doubt;
[94.2]
The right is only
prima
facie
established, that there is a
well-grounded apprehension of irreparable harm to Omni if the interim
relief is not granted, and they
ultimately succeed in establishing
their rights;
[94.3]
That the balance of convenience favours
granting Omni the interim relief; and
[94.4]
That Omni has no other satisfactory remedy.
[95]
The court must take into account the
allegations made by Omni, as well as Ms Koekemoer in respect of
herself and Epicode in deciding
whether a
prima
facie
right has, in fact, been
established by Omni. It is not sufficient that Omni has in its
affidavits made out a
prima facie
case.
[96]
In
Webster
v Mitchell
[9]
, Clayden, J set out the
following approach which has been followed by our courts for more
than 70 years:
“
The
use of the phrase
'
prima
facie
established though open to
some doubt
' indicates I think that more
is required than merely to look at the allegations of the applicant,
but something short of a weighing
up of the probabilities of
conflicting versions is required. The proper manner of approach
I consider is to take the facts
as set out by the applicant, together
with any facts set out by the respondent which the applicant cannot
dispute, and to consider
whether, having regard to the inherent
probabilities, the applicant could on those facts obtain final relief
at a trial.
The facts set
up in contradiction by the respondent should then be considered.
If serious doubt is thrown on the case of the
applicant, he could not
succeed in obtaining temporary relief, for his
prima
facie
right established, may
only be open to 'some doubt'
.
But if there is mere contradiction, or unconvincing explanation, the
matter should be left to trial and the right be protected
in the
meanwhile, subject of course to the respective prejudice in the grant
or refusal of interim relief.”
[97]
In
Olympic
Passenger Services (Pty) Ltd v Ramlagan
[10]
,
the court succinctly set out the position in relation to the granting
of interim interdicts as follows:
“
It
thus appears that where the applicant's right is clear, and the other
requisites are present, no difficulty presents itself about
granting
an interdict. At the other end of the scale, where his
prospects of ultimate success are nil, obviously the Court
will
refuse an interdict. Between those two extremes fall the intermediate
cases in which, on the papers as a whole, the applicants'
prospects
of ultimate success may range all the way from strong to weak. The
expression
'prima facie established
though open to some doubt'
seems to me a
brilliantly apt classification of these cases. In such cases,
upon proof of a well-grounded apprehension of
irreparable harm, and
there being no adequate remedy, the Court may grant an interdict —
it has a discretion, to be exercised
judicially upon a consideration
of
all the facts
.
Usually this will resolve itself into a nice consideration of the
prospects of success and the balance of convenience —
the
stronger the prospects of success, the less need for such balance to
favour the applicant: the weaker the prospects of success,
the
greater the need for the balance of convenience to favour him.
I need hardly add that by balance of convenience is meant
the
prejudice to the applicant if the interdict be refused, weighed
against the prejudice to the respondent if it be granted.”
Application of the
legal principles to the facts
[98]
It has been laid down that for competition
to become unlawful it must infringe upon a legal norm. That
norm is the legal convictions
of the community, also referred to as
the
boni mores
or public policy.
[99]
There are certain categories of competition
that the Courts have classified as being
contra
bonos mores
or offensive to the
convictions of the community and therefore amount to unlawful
competition.
[100]
The filching of confidential information by
an employee or ex-employee to be used to harm the business interests
of the employer,
is one such instance.
[101]
It is clear that whilst in the employ of
Omni SA, Ms Koekemoer engaged in unlawful competition with Omni in
favour of ASV and that
Omni was entitled to stop such activities,
inter alia
,
with an interdict had it come to its attention sooner than October
2023.
[102]
Should Omni now be denied an interim
interdict simply because Ms Koekemoer is no longer its employee,
especially given the facts
in this matter?
[103]
What Ms Koekemoer did was abuse her
position as the sole director of Omni SA, to build two rival
businesses, ASV and Epicode, and
as soon as she was caught and
suspended, she tendered her resignation and even then, during the
handover, she continued to filch
Omni’s confidential
information, with the intention of taking Omni’s clients with
her.
[104]
In my view, that is by all accounts morally
reprehensible conduct that the trading community would frown upon.
It is certainly
unfair and dishonest practice that cannot be
tolerated. Ms Koekemoer was employed precisely to bring in
clients for Omni
SA, which is not denied, but she did exactly the
opposite.
[105]
She was paid a rather handsome salary for
doing her job as an employee of Omni SA and was even given additional
incentive in the
form of a 20% share in Omni without any financial
investment by her.
[106]
Once the clients were brought on board,
they became the clients of Omni and Ms Koekemoer was not and is not
entitled to lure them
as if they are her personal property by using
Omni’s confidential information to do so, for the purposes of
building Epicode’s
business.
[107]
It is not only the fact that Ms Koekemoer
has been filching confidential information prior to her resignation
and during the hand-over
phase or canvassing the clients after her
resignation that taints her conduct. What does taint her
conduct is that she abused
her relationship of trust with Omni in
order to initiate this process of luring away the clients by using
Omni’s confidential
information.
[108]
And this notwithstanding, she wants to be
free to complete that illegitimate process from outside. This kind of
conduct serves to
legitimise unlawful conduct and cannot be
countenanced.
Whether Omni has
established a
prima facie
right
[109]
The facts set out above confirm that Omni
has at least established a
prima facie
right for the relief that it seeks.
[110]
The unlawful conduct of Ms Koekemoer and
Epicode as set out above is gravely prejudicial to Omni.
[111]
Omni developed the information for its
products over a period of 25 years and spent millions of Pound
Sterling to develop these
products and Ms Koekemoer, in her capacity
as the sole director, usurped that information, in concert with the
ex-employees of
Omni who now own Omni’s rival companies, ASV
and Epicode.
[112]
The very fact that clients left Omni to
contract with ASV initially and now Epicode for the same product for
which they initially
contracted with Omni, is sufficient evidence for
showing that the products that ASV and Epicode are advertising, come
directly
from the information utilised to create the Omni’s
products.
Well-grounded
apprehension of harm and balance of convenience
[113]
It is clear from the facts set out above
that Ms Koekemoer has been openly soliciting Omni’s clients and
has been successful
in luring at least two major clients being
Afriboom and the Capital Group.
[114]
Prior to the formation of Epicode and
whilst she was the sole director and employee of Omni, she also
openly referred Omni’s
clients and new potential Omni clients
to ASV instead of Omni, in clear breach of her fiduciary duties to
Omni.
[115]
In light of the above, it is clear that
Omni’s business is at risk and that there is at least a
reasonable apprehension of
harm should the interim interdict not be
granted.
The balance of
convenience
[116]
Omni contends that it will be prejudiced if
the interim interdict is not granted, but that Ms Koekemoer and
Epicode will not suffer
any prejudice whatsoever, as they are free to
develop their own product.
[117]
Given Ms Koekemoer’s contention that
Epicode does not compete at all with Omni and that they sell a
different product altogether
and that Epicode does not directly
compete with Omni at all, an interim interdict will not harm Ms
Koekemoer and Epicode.
Absence of
satisfactory alternative form of relief
[118]
Based on the facts as set out above, Omni
contends that Ms Koekemoer and Epicode need to be stopped in their
tracks and that based
on
Dun and
Bradstreet
(
supra
),
at this stage, there is no alternative remedy except an interim
relief pending the outcome of the damages claim which they will
institute within 15 days of the granting of this order.
DISCUSSION
[119]
Based on the facts read with the legal
principles enunciated above, Omni has a right to the protection of
its goodwill against unlawful
infringement.
[120]
It is trite that for the purposes of an
interim interdict it is sufficient that there be potential prejudice.
[121]
Omni has established a
prima
facie
right. There can be no doubt that
the conduct of Ms Koekemoer and the other respondents was calculated
to cause Omni prejudice.
[122]
Using of confidential information and
luring clients away from Omni obviously entails a diminution of
Omni’s business.
I am therefore satisfied that Omni has
shown a reasonable apprehension of harm and the threat of such harm
continued even after
Ms Koekemoer’s resignation which is also
when all of these events and untoward conduct by Ms Koekemoer and the
respondents
came to Omni’s attention.
[123]
Omni has contended that it has no
alternative remedy. In principle it would be entitled to sue
for damages and that seems
to be the relief that Omni intend to
pursue as per paragraph 3 of the notice of motion but this would
entail a quantification of
such damages which would entail more time
that could lead to further harm.
COSTS:
[124]
The parties argued with regards to the
costs of the postponement application and the hearing on 30 November
2023.
[125]
According to Omni, the hearing of the
interim interdict application was set down for 30 November 2023, but
that a postponement was
triggered by the fact that Omni was not
timeously able to access more than 59 000 e-mails that Ms Koekemoer
had deleted prior to
leaving her office, and that these needed to be
recovered in order to consider them before finalising their replying
papers.
[126]
Ms Koekemoer contended that Omni brought
this application in an undue hurry as they should have obtained all
of the information
prior to bringing this application and that
accordingly, because the postponement was at the behest of Omni, that
Omni should pay
the costs of the postponement.
[127]
Omni only became aware of Ms Koekemoer and
the respondents' conduct relating to its business in South Africa
during October 2023
and given the in-depth investigation that had to
be undertaken and how quickly this all unfolded, Omni had every right
to bring
this application on an urgent basis.
[128]
It is common cause that Ms Koekemoer
opposed the application and insisted that Omni urgently serve a
substantive application for
postponement which would be opposed.
In the end, a formal application was brought and, contrary to Ms
Koekemoer’s threats
to oppose the application for a
postponement, she did not, and the Honourable Mr Justice Thulare
granted the postponement for the
matter to be heard on 3 June 2024
with the issue of costs to stand over for later determination.
[129]
I understand that Omni was not in a
position to file their replying affidavit based on the deletion of
59 000 e-mails by Ms
Koekemoer and the time that it took to
retrieve these e-mails.
[130]
However, Ms Koekemoer’s explanation
for why 59 000 emails were deleted from her work computer is not
implausible.
She states that these were deleted since 2016 over
a period of “
seventeen years as
all my emails were amalgamated as they changed. Therefore, my inbox
represents messages from all my employment
obligations with Ladha
”.
I point out first that between 2016 and 2023 is seven years and that
these submissions, therefore, seemingly lacks
merit.
[131]
Her insistence that Omni bring a
substantive application for postponement was also unreasonable since
not only did she not oppose
the postponement application but she also
filed a fourth set of affidavits once she was served with Omni’s
replying affidavit.
[132]
In light of the aforegoing, I am of the
view that the costs for the postponement application and the hearing
of 30 November 2023
should be borne by Ms Koekemoer and Epicode,
jointly and severally, the one paying the other to be absolved.
[133]
With regards to the main application, I see
no reason why costs should not follow the result.
CONCLUSION:
[134]
For all the reasons set out above, Omni SA
and Omni UK had no alternative but to approach a court on an urgent
basis in order to
secure temporary interdictory relief pending the
final determination of an action which Omni SA and Omni UK will
institute against
all of the respondents.
[135]
The temporary relief required by Omni SA
and Omni UK is not to address the damage already done, but it will
have the effect of restraining
any continuation of the aforesaid
unlawful conduct by Ms Koekemoer and the respondents.
[136]
The reason for this is because both Omni SA
and Omni UK reasonably apprehend that since Ms Koekemoer no longer
works for Omni SA,
she and the respondents are at large to approach
all of Omni SA and Omni UK’s clients with a view to inducing
them to leave
Omni SA and Omni UK and take their business to ASV
and/or Epicode.
[137]
Having copied Omni’s product without
having to spend the years and the millions of Rands/Pounds Sterling
that would otherwise
be required to develop such a product, as Omni
did, there exists a very real risk that the respondents will simply
pursue not all
of Omni SA’s clients, but also those of Omni UK
as well.
[138]
In light of all of the facts as set out
above read with the case law pertaining to unlawful competition, I am
satisfied that Omni
SA and Omni UK have satisfied the requirements
for an interim interdict and that there is no reason why such
interdict should not
be granted against Ms Koekemoer and Epicode.
[139]
Accordingly, I make the following order:
[139.1]
Pending the final determination of the
action to be instituted against the respondents, as contemplated
hereinbelow:
[139.1.1]
That Ms Koekemoer and Epicode are
interdicted from:
(i)
Unlawfully competing with Omni SA and Omni
UK by:
(a)
Using any information which constitutes
proprietary and/or confidential information in connection with Omni’s
business in
South Africa and the United Kingdom;
(b)
Approaching, contacting, soliciting and/or
engaging with any of Omni’s clients with a view to:
(aa)
Inducing them to terminate their contracts and/or dealings with Omni
SA or Omni UK or either of them; and/or
(bb) Securing
them as clients for Ms Koekemoer and/or Epicode; and/or
(cc)
Representing to them directly or indirectly that Epicode’s
systems are identical and/or similar to
Omni’s products and
systems, which are described in the founding affidavit.
(c)
Passing off the products, systems and/or
services offered by Ms Koekemoer and/or Epicode:
(aa) As
being those of Omni SA and Omni UK;
(bb) As being
related to and/or affiliated with Omni SA or Omni UK.
(d)
Epicode holding itself out as being
affiliated with Omni SA and/or Omni UK.
(e)
Offering the products, systems and/or
services which they offer to the public in a manner which is
confusingly similar to Omni SA
and Omni UK’s distinctive
get-up, software and/or application layout.
[139.1.2]
Disclosing any of Omni’s confidential
information, including, but not limited to, client lists, pricing
information, information
relating to the development and maintenance
of Omni’s systems to include but are not limited to Omni
Hotels, Omni iManage
It and/or Omni Commercial and Health Care to:
(i)
Epicode;
(ii)
Any third party.
[139.2]
That Omni SA and Omni UK are directed to
institute an action against the respondents, as well as any other
relief which they might
seek, within fifteen (15) court days of the
granting of this order (“
the
action
”).
[139.3]
As regards the issue of costs, that Ms
Koekemoer and Epicode are ordered to pay the costs of Omni SA and
Omni UK jointly and severally,
the one paying the other to be
absolved as follows:
[139.3.1] The costs
of the main application on a party and party Scale C including the
cost of two counsel, where so employed
in respect of attendances on
or after 12 April 2024.
[139.3.2] The costs
of the postponement application and opposed hearing on 30 November
2023 on a party and party Scale C,
including the cost of counsel.
______________________
___
The Hon. Ms Acting
Justice Mahomed
Of the Western Cape
High Court
APPEARANCES
:
Applicant’s
Counsel:
Adv Rod Howie
Instructed
by:
David Shapiro & Associates Inc.
Respondents’
Counsel: Adv Mea Steyn
Instructed
by:
AB Attorneys
[1]
1968
(1) SA 209
(C) at 221C-H
[2]
1987
(4) SA 821
(D) at 846C
[3]
Neethling, Potgieter and Visser,
Law
of Delict
at p.316 refers to this as factual infringement
[4]
1983 (3) SA 917
(W) at 927D. See also Coolair Ventilators
(supra)
[5]
1993 (2) SA 726
(T) at 730H
[6]
Coolair Ventilators
(supra)
at 689F-H
[7]
Van Heerden & Neethling,
Unlawful
Competition
at p.227 specifically lists a customer’s list as such
[8]
At 929D
[9]
1948 (1) SA 1186
(W) at 1189
[10]
1957 (2) SA 382
(D) at 383C-G
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