Case Law[2024] ZAWCHC 230South Africa
Pika Chemical & Technical (Pty) Ltd t/a Afritech v Nolte and Others (4093/2024) [2024] ZAWCHC 230; [2024] 4 All SA 625 (WCC) (30 August 2024)
High Court of South Africa (Western Cape Division)
30 August 2024
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Pika Chemical & Technical (Pty) Ltd t/a Afritech v Nolte and Others (4093/2024) [2024] ZAWCHC 230; [2024] 4 All SA 625 (WCC) (30 August 2024)
Pika Chemical & Technical (Pty) Ltd t/a Afritech v Nolte and Others (4093/2024) [2024] ZAWCHC 230; [2024] 4 All SA 625 (WCC) (30 August 2024)
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sino date 30 August 2024
FLYNOTES:
INTELLECTUAL
– Confidential information –
Fruit
drying formulation
–
Interim
interdict – Claim that formulation is proprietary and
confidential – Significant economic value to whomsoever
is
in possession – Ownership established – Respondent
disclosed applicant's formulation – Conduct is a
breach of
ongoing fiduciary duty not to disclose confidential information
which is worthy of protection – Rights of
ownership and
confidentiality are being infringed – Interdict granted.
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Case
No: 4093/2024
In
the matter between:
PIKA
CHEMICAL & TECHNICAL (PTY) LTD
t/a
AFRITECH
Applicant
and
JAMES
STEPHEN NOLTE
First
Respondent
JSN
CHEMICAL ENTERPRISES CC
t/a
BAYCHEM
Second
Respondent
SOUTHERN
OIL (PTY) LTD
Third
Respondent
CHEMTOLL
PETROCHEMICALS (PTY) LTD
Fourth
Respondent
PIONEER
FOODS (PTY) LTD
Fifth
Respondent
Coram:
Acting Justice B Manca
Heard:
28 August 2024
Delivered:
30 August 2024
JUDGMENT
MANCA
AJ:
[1]
In this matter the applicant seeks
an interim interdict restraining
the respondents from using its formulation for a fruit drying oil
("FDO") known as
'Pylene FDO'.
[2]
The applicant produces and supplies
chemical compounds of various
applications and has done so since 1997. The applicant's sole
director is Mr Dorian Overberg. The
first respondent is Mr James
Nolte. He is a chemist of some considerable experience and he and Mr
Overberg founded the applicant.
[3]
The applicant's right to
the relief which it seeks is founded on the contention that it
developed and manufactured (and still manufactures)
Pylene FDO which
is used to aid the drying of
inter
alia,
raisins
and sultanas. It has supplied Pylene FDO to,
inter
alia,
Safari
Dried Fruit in Upington for some time.
[1]
This has been highly lucrative for the applicant.
[4]
The applicant contends that the formulation
of Pylene FDO is
proprietary to it and is confidential. It claims that the formulation
of Pylene FDO is known only to a handful
of people and is of
significant economic value to whomsoever is in possession thereof.
[5]
Mr Nolte, who is the first respondent,
developed Pylene FDO whilst a
director of the applicant. He did this by reverse engineering an FDO
manufactured by an Australian
company known as Victoria Chemicals.
Victoria Chemicals is the leading brand of fruit drying oil and has
dominated the local market.
It was able to do so as it is able to
produce and offer its drying oil to the market at a competitive rate.
[6]
Victoria Chemicals'
ability to do so, and how and why it was able to do so, is what
interested Mr Nolte. According to him, he managed
to discover how
this was done by Victoria Chemicals by researching the FDA
requirements for FDO's.
[2]
According to Mr Nolte,
'he
discovered that the emulsifying system they
[Victoria
Chemicals]
used
was the answer'
and
it was on
'the
back of this discovery that the applicant managed to regain the fruit
drying oils market since I was able to produce the product
at a
cheaper rate which still yielded the requisite results'.
[7]
I pause to mention that
the sale by the applicant (and any of its competitors) of dried fruit
oil to the South African fruit dried
industry is a once-a-year event.
Orders are placed in October for delivery in the early part of the
following year. I should also
point out that Mr Nolte is the sole
member of the second respondent which trades as Baychem and produces
fruit drying oil. Although
not specifically addressed in the
affidavits it would appear that Baychem itself does not produce fruit
drying oil in large quantities,
if indeed it still produces fruit
drying oil at all.
[3]
[8]
This application was precipitated by communications
between Mr
Overberg and representatives of the fifth respondent, originally
cited as Pepsico South Africa (Pty) Ltd. It turns out
that Pepsico is
a trade name used by Pioneer Foods (Pty) Ltd. The citation of the
fifth respondent has been amended to that of
Pioneer Foods (Pty) Ltd
pursuant to a notice delivered in terms of rule 28(1) to which there
was no opposition. For the sake of
convenience and bearing in mind
the correspondence and the references in the affidavit are all to
Pepsico, I will continue to refer
to the fifth respondent as Pepsico.
[9]
On 5 October last year Mr Overberg enquired from
Pepsico whether it
intended to place any orders for Pylene FDO for the upcoming year. He
was surprised to hear that Pepsico did
not require Pylene FDO as it
had found an alternative supplier in the form of the third
respondent, Southern Oil (Pty) Ltd ("SOILL").
[10]
SOILL is an oil extractor and edible oil refinery located in
Swellendam.
It has approximately 515 employees and is the leader in
the growing South African canola oil market and produces 100% of the
South
African canola crop with its production of,
inter alia,
its
B-well canola oil products. It has a product development
division and has since 2015 embarked upon developing an FDO to
take
to market. The order it received from Pepsico in October last year
was its first foray into this market.
[11]
Be that as it may, Mr Overberg was surprised to hear that SOILL
had
sold an FDO to Pepsico as, to his knowledge, it had never done so
before.
[12]
Also in October last year, in fact on the day after Mr Overberg
learned Pepsico did not require the applicant's FDO, Mr Overberg had
occasion to speak to a SOILL account manager by the name of
Wendy
Dzviti. The primary purpose of the call was to place orders for
canola oil with SOILL. In the conversation, however, Ms Dzviti
confirmed that SOILL had recently added an FDO to its product
offering and that it had sold its first consignment to Pepsico. Ms
Dzviti appeared to think that Mr Overberg was associated with the
fourth respondent.
[13]
The fourth respondent is
Chemtoll Petrochemicals ("Chemtoll"). It is a chemical
manufacturer and was appointed as SOILL's
contract manufacturer and
packer for SOILL's FDO. Chemtoll uses the raw material supplied to it
by its customers (in this case
SOILL) and the proprietary information
supplied to it by its customers in relation to the manner in which
the raw materials are
to be used (in this case SOILL). Chemtoll
performs the same task for the applicant.
[4]
[14]
On hearing of Chemtoll's involvement in this process and because
he
assumed that Chemtoll was using the applicant's formulation to
produce an FDO for SOILL without the applicant's consent and
in
contravention of its non-disclosure agreement, Mr Overberg met with
Mr Theunissen of Chemtoll. During that meeting Mr Overberg
was told,
for the first time, that Mr Nolte was involved in what Mr Overberg
referred to as
'the scheme'
and that Mr Nolte was
'an agent
or consultant of some sort'
to SOILL.
[15]
As a consequence of this, and other information such as the
applicant's
data sheets stored on Mr Nolte's erstwhile drop box
folder on the applicant's computer system, Mr Overberg concluded that
SOILL
was using the applicant's FDO formulation to produce its
competing product and that it did so with the assistance of Mr Nolte
and
Baychem.
[16]
Accordingly, he consulted with the applicant's attorneys DG
Gerntholtz
Inc ("Gerntholtz") and letters of demand were
sent by Gerntholtz to SOILL, Chemtoll and Pepsico, requesting from
each
of them an undertaking that, without the applicant's consent,
they would not: in Chemtoll's case produce SOILL's FDO; in Pepsico's
case that it would not purchase SOILL's FDO; and in SOILL's case that
it would not trade in that FDO.
[17]
They all responded to the letters of demand.
[18]
Chemtoll took the view,
expressed in a letter written to Gerntholtz by Mr Theunissen, that it
was a toll manufacturer that manufactures
chemicals for various
companies including the applicant.
[5]
Mr Theunissen advised that it had not shared any of the applicant's
information to any third party and declined to give the undertaking
sought.
[19]
Pepsico advised that it had shared the contents of the letter of
demand
received by it with SOILL and disavowed any knowledge of
wrongdoing on its part. It took the stance that the applicant would
'need to prove the allegations contained in your letter'
and
as the applicant had not shared any proof of those allegations, it
declined to give the undertaking.
[20]
SOILL replied through its attorneys, Werksmans Attorneys
("Werksmans").
Werksmans advised that its instructions were
that:'
20.1
Canola oil is the main ingredient in a specific type of fruit drying
oil
imported from Australia and widely used within the fruit drying
industry in South Africa;
20.2
SOILL had been working on developing a local version of the imported
product
since 2015 ("the product");
20.3
The product is produced by way of a process that is accepted as a
standard
process;
20.4
Mr Nolte acts as a consultant to SOILL with a view to assisting it
with,
inter alia, 'development of the product';
and
20.5
Chemtoll assists SOILL in the manufacturing of the first batch of
SOILL's
product which would be sold to Pepsico in due course.
[21]
It too refused to give the undertaking sought.
[22]
The letter from Werksmans confirmed the information given to Mr
Overberg
by Mr Theunissen at their meeting: Chemtoll was
manufacturing an FDO at the request of SOILL and Mr Nolte was acting
as a consultant
to SOILL. It went further by advising the applicant
that Mr Nolte's consultancy role encompassed assisting SOILL to
develop its
product.
[23]
Although Gerntholtz's letters of demand sought undertakings by noon
on 15 November 2023 failing which interdictory proceedings would
be launched in the High Court, these proceedings were only
instituted
as a matter of some urgency on 28 February 2024.
[24]
The relief sought in the notice of motion was the following:
'1.
Pending the final determination of the action referred to in
paragraph 2 below, interdicting
and restraining the First to Fifth
Respondents from making use of or in any manner dealing with,
directly or indirectly, including
by disseminating or taking
possession of, the Applicant's fruit drying oil formulations or any
products derived therefrom, without
the Applicant's consent.
2.
Directing the Applicant to issue out an action against the First
to Fifth Respondents, including for relief restraining the First
to
Fifth Respondents from making use of or in any manner dealing with,
directly or indirectly, the Applicant's fruit drying oil
formulations
or any products derived therefrom without the Applicant's consent,
within 15 court days, failing which the abovementioned
interim
interdictory relief shall lapse.
3.
Directing the First, Second and Third Respondents, and any other
Respondents who may oppose the application, to pay the costs of
the
application, jointly and severally.
4.
Granting the Applicant such further and/or alternative relief as
the Court may deem meet.'
[25]
Notice was also given that if the application was opposed the
matter
would be set down for hearing in the motion court for an order
postponing the application for hearing on the semi-urgent
roll on a
date to be arranged with the registrar together with a timetable
regulating the further conduct of the matter.
[26]
The application was (and is) opposed by Mr Nolte, Baychem and
SOILL.
Chemtoll and Pepsico have played no active role in the proceedings
(save that Chemtoll's attorney appeared at the hearing
to confirm
that his client did not oppose the application) and both abide the
Court's decision. The matter came before me pursuant
to an order
which was agreed to by the parties and as foreshadowed in the notice
of motion. Urgency is not an issue in this application
although
Ms
Vaughan,
who appeared for SOILL, submitted that the delay in
launching the application was a factor which I should consider when
exercising
my discretion to grant or refuse the interdictory relief
sought. This is a matter to which I will return when dealing with
whether
I am satisfied that the applicant is entitled to the relief
sought.
[27]
As already indicated the applicant relies on its claim to own the
formulation
of the FDO being produced by Chemtoll on behalf of SOILL
for the relief sought by it against all the respondents.
[28]
In relation, however, to Mr Nolte the applicant also relies on Mr
Nolte's
breach of his fiduciary duty (as a previous director of the
applicant) not to use information confidential to the applicant for
his own benefit.
[29]
I agree with
Mr
Farlam,
who
appeared for the applicant, that this duty remains with a director
after his resignation and is breached if it involves the
use of
confidential information that is worthy of protection.
[6]
It is accordingly necessary, in relation to the relief sought against
all the respondents to first enquire whether the applicant's
formulation of Pylene FDO is confidential to the applicant and is
worthy of protection. It is to this question that I now turn.
[30]
The defence common to Mr Nolte, Baychem and SOILL is that the
formulation
of Pylene FDO is not confidential and, if not freely
available, is easy to access. Allied to this is the contention that
the FDO
that SOILL uses was developed by SOILL itself and is not a
copy of the Pylene FDO formulation.
[31]
In regard to this defence,
Ms Vaughan
submitted that having
regard to the fact that Pylene FDO is not the subject of a patent,
that there are a number of FDO formulas
available which do not
constitute trade secrets and that all FDOs only have three main
components, the applicant's formulation
of Pylene FDO is not
confidential to it.
[32]
It was also submitted by
SOILL that because the applicant failed in its founding affidavit to
state the precise makeup of its formula,
or to put it differently
explain how it is different to other formulations freely available,
is fatal to the applicant's case.
In the absence thereof, so it was
submitted, SOILL is unable to even determine whether its formulation
is the same as the applicant's
formulation. Added to this is the
contention that SOILL developed its own formulation before engaging
Mr Nolte on a limited basis
to assist and advise on the production
process (not the formulation) of SOILL's FDO.
[7]
[33]
In determining factual
disputes in applications of this nature I must consider those facts
set out by the applicant together with
those set out by the
respondents which the applicant cannot dispute. Once the facts are
established on that basis I should then
determine whether, having
regard to the inherent probabilities the applicant could obtain final
relief. If serious doubt is thrown
on the applicant's case it cannot
be granted interim relief. However, if those facts have
prima
facie
established
an entitlement to the relief, the relief may be granted even if open
to some doubt.
[8]
[34]
While it is correct that SOILL has been in the process of developing
an FDO since 2015 it was unable to do so effectively until it engaged
the services of Mr Nolte and Baychem. As I have already
indicated Mr Nolte set about investigating what gave Victoria
Chemicals its advantage and he did so while studying the formulation
of Victoria Chemicals' fruit drying oil together with his further
research in relation to FDA requirements. It was on the back
of the
discovery that the difference was in relation to the emulsifier used,
that he was able to produce the product at a cheaper
rate and which
still yielded the required results.
[35]
I agree with the applicant's submission that what gave the applicant
its competitive advantage enabling it to be the only local
manufacturer of an FDO capable of competing with Victoria Chemicals
for price and quality was its formulation for Pylene FDO. Indeed, and
perhaps tellingly, Mr Nolte admitted that he is one of only
a handful
of people who know the formulation of Pylene FDO. This admission in
my view, is sufficient to establish,
prima facie,
that the
applicant's formulation of Pylene FDO is confidential to the
applicant.
[36]
That being so, the next question is whether the formulation of the
FDO being used by SOILL, was produced by it without the assistance of
Mr Nolte.
[37]
As of February 2022 SOILL had not yet developed an FDO which was
capable
of being taken to the market.
[38]
On 7 February 2022, Ms Tersia Joubert, the lead research and
development
technologist for SOILL, sent Mr Nolte an email. He was
unknown to her at the time. In the email she told him that she had
received
his contact details from someone at Pepsico and hoped that
he could assist. She told Mr Nolte of the progress made by SOILL in
developing the product and advised that although they had done some
small lab scale trials the additional chemicals added are important
and the minimum order quantities were large so they had not
progressed much further. She informed Mr Nolte that the
representative
from Pepsico had told her that Mr Nolte
'might be
able to assist with a more achievable formulation'.
[39]
Mr Nolte replied to Ms Joubert by email on 11 February 2022. He told
her
that this was a complicated situation as he was a manufacturer
and supplier of FDO's and that if SOILL was going to enter the
limited
market they would be in direct competition with each other.
He told Ms Joubert that he is
'still the only person locally who
has the knowledge of the oils being supplied at present. The other
local manufacturer is Afritech
of which I was
a
50%
shareholder up until 2 years ago. They are using my formulation and
knowhow. So
in effect I own the local technology'.
Co-operation was accordingly not feasible.
[40]
Whilst Mr Nolte may have
subjectively believed he owned the technology, on the information
before me and bearing in mind the test
to be applied in evaluating
the facts, my conclusion is that
prima
facie
the
technology is owned by the applicant.
[9]
[41]
Despite Mr Nolte's initial rebuff of SOILL's overture, Mr Nolte
appears to have had a change of heart and a business relationship of
some sort was established between Mr Nolte, Baychem and SOILL.
This
appeared to take the form of some sort of joint venture in terms of
which Mr Nolte, Baychem and SOILL would co-operate and
that such
co-operation would result in SOILL having the ability able to produce
FDO in far greater quantities than Mr Nolte and
Baychem could ever
have achieved having regard to their limited resources. Moreover it
is inherently improbable that Mr Nolte,
having expressed dismay at
the possibility of SOILL entering the limited market and being a
competitor of his, would nevertheless
have a change of heart if there
was not an insubstantial commercial advantage to him. After all, he
was told by SOILL that they
needed his assistance in order to achieve
a workable formulation.
[42]
Unsurprisingly SOILL did not attempt to disavow any exchange of
information between it and Mr Nolte. What it did do, however, was
contend that Mr Nolte's technical input was related only to the
production process and not the formulation of the FDO. Whilst this
may ultimately be demonstrated at a trial in due course, it
does no
more than cast some doubt on the
prima facie
case established
by the applicant in relation to the proprietary nature of the
formulation presently used by SOILL. In addition,
the letter from
Werksmans in response to the Gerntholtz letter of demand did not
advise the applicant that Mr Nolte was assisting
in the
production process. On the contrary, it specifically referred to Mr
Nolte assisting in the development of the product.
[43]
I am accordingly satisfied that the applicant has established,
prima
facie,
that Mr Nolte disclosed the applicant's formulation of
Pylene FDO to SOILL and that such conduct is a breach of his ongoing
fiduciary
duty not to disclose information confidential to the
applicant and which is worthy of protection in the hands of the
applicant.
[44]
Ms Vaughan,
however, submitted that in relation to SOILL, the
applicant must also establish that SOILL must have knowingly
appropriated confidential
information in order to obtain interdictory
relief against SOILL.
[45]
The submission was that I could not find, on the papers, that SOILL
had knowingly misappropriated the confidential information and that
the interdictory relief against SOILL could not be granted.
[46]
In making this submission reliance was placed on certain dicta made
by Lewis J (as she then was) in
Waste Products Utilisation (Pty)
Ltd v Wilkes and Another
2003 (2) SA 515
(W).
[47]
The
Waste Products
matter concerned an action based on
unlawful competition in which damages were claimed. The claims were
formulated in contract,
alternatively delict.
[48]
Mr Farlam
dealt with this submission on two bases. Firstly, at
a factual level he contended that there was sufficient evidence to
conclude,
prima facie,
that SOILL was aware of the
confidential nature of the information imparted to it by Mr Nolte
even though there may be some doubt
in regard thereto. Secondly,
Mr
Farlam
submitted that the requirement that SOILL must have had
knowledge of the confidential information relates to the element of
unlawfulness
necessary to establish the delict of unlawful
competition as opposed to requirements to be met for an interdict
seeking to restrain
a third party such as SOILL from using the
applicant's confidential information.
[49]
In my view, the submissions made by
Mr Farlam
both in relation
to the facts and the legal position are such that they do not
disentitle the applicant to the interim relief claimed.
[50]
I am accordingly satisfied that the applicant has established,
prima
facie,
that it owns the formulation of Pylene FDO and that the
formulation thereof is confidential to it. I am also satisfied
prima
facie
that those rights of ownership and confidentiality are
being infringed by Mr Nolte, Baychem and SOILL. It follows that
Chemtoll
and Pepsico would also be infringing those rights if, in the
case of Chemtoll it continued to produce SOILL's FDO and, in the case
of Pepsico, if it continued to purchase SOILL's FDO.
[51]
That being said the further issue is whether the applicant has
established the other requirements for an interim interdict.
[52]
Based on my finding in relation to the applicant's proprietary right
I agree with the applicant's submission that the harm which it
suffers is not difficult to comprehend. It is so that the applicant
must share a limited market with competitors who compete with it
lawfully and every sale it loses to SOILL and/or Baychem and/or
Mr
Nolte is a sale that it cannot get back. According to the applicant
the loss of turnover caused by the production of the SOILL
FDO and
the sale thereof by SOILL is very significant, amounting to almost
half of the applicant's business. A small enterprise
such as the
applicant will not be able to sustain such losses for any period of
time and without interim interdictory relief there
is a very real
prospect that it will close down with devastating effects for all
concerned including its employees.
[53]
The applicant must also establish that the balance of convenience
is
in its favour. This aspect is a no contest as far as Mr Nolte and
Baychem are concerned as they do not challenge these aspects
at all.
[54]
This applies with equal force to Chemtoll and Pepsico who do not
contest the interdictory requirements at all.
[55]
The challenge to the
applicant's case in Mr Nolte's answering affidavit is aimed fairly
and squarely at the primary issue in relation
to the proprietary
nature of Pylene FDO and its confidentiality. No submissions were
made in relation to balance of convenience
and an alternative remedy
and there is nothing more to be said in that regard in respect of the
relief sought against Mr Nolte
and Baychem.
[10]
Mr Nolte made oral submissions before me but did not address any of
these issues in his oral address.
[56]
SOILL complains of its wasted expenditure, lost profit and
reputational
damage as factors which indicate that the balance of
convenience favours it. What SOILL loses sight of however is that, by
its
own admission, its nascent fruit drying oil business is a small
element of its large business. That being so the inconvenience the
applicant seeks to impose on SOILL will have little economic impact
on it. The consequence thereof is that the balance of convenience
must favour the applicant.
[57]
As regards an alternative remedy I agree with the applicant that
it
cannot be expected to endure unlawful conduct pending the outcome of
an action that is likely to take a number of years to finalise.
This
is particularly so when one has regard to the fact that if this
conduct persists the probabilities are that the applicant's
enterprise will collapse.
[58]
As alluded to earlier
Ms Vaughan
contended that even if I were
to find that the applicant had established the requirements for an
interim interdict I should, having
regard to my residual discretion,
refuse the interdict because of the applicant's delay between
November 2023 and February 2024
in launching the application. I do
not agree. The production of fruit dried oil is a once off process
that occurs on an annual
basis. The threatened interdict did not
prohibit SOILL from producing its product and selling it to Pepsico.
The fact that SOILL
has produced the product and has sold it to
Pepsico does not lead one to the ineluctable conclusion that the
confidential nature
of the formulation will inevitably come to be
known amongst the wider manufacturing community in Southern Africa.
On the contrary,
Chemtoll has concluded NDAs with both Afritech and
SOILL and it is highly improbable that the formulation of Pylene FDO
will soon
become public knowledge. I am thus of the view that such
delay as there was does not militate against me granting the interim
relief
sought by the applicant.
[59]
The last string to
Ms Vaughan's
bow was that due to the
unfortunate delays experienced in matters coming to trial that the
relief, if granted, will be final in
effect. The lengthy delays in
matters coming to trial do not have any effect on the nature of the
relief sought. The relief will
only endure until such time as the
trial has ended.
[60]
As regards costs I am satisfied that it is appropriate to
award the
applicant its costs in bringing this application. As regards
counsels' fees there can be little doubt that the matter
is of
considerable importance to the applicant and that the costs of two
counsel, where employed, is justified and that such costs
should be
taxed on scale C.
[61]
In the result I make the following order:
1.
The first to fifth respondents are interdicted and
restrained from making use of or in any manner dealing with directly
or indirectly
including by disseminating or taking possession of, the
applicant's fruit drying formulations or any products therefrom
without
the applicant's consent.
2.
The interdict is to endure pending the final determination
of an action to be issued out of this court by the applicant against
the first to fifth respondents for relief including restraining the
first to fifth respondents from making use of or in any manner
dealing with, directly or indirectly, the applicant's fruit drying
formulations or any products derived therefrom without the
applicant's consent.
3.
The applicant is directed to issue out the aforesaid action
within 15 (fifteen) court days from the date of this Order failing
which
the interim interdict will
lapse.
4.
The first, second and third respondents are to pay the
applicant's costs jointly and severally, such costs to include the
costs
of two counsel where so employed and to be taxed on scale C.
ACTING
JUDGE B J MANCA
For
the applicant:
Adv P
Farlam
SC (The heads of argument
having been drawn by Adv CJ
Quinn
Instructed
by
: Mr O Gerntholtz, Gerntholtz Attorneys
For
the 1
st
and 2nd
respondents:
(attorneys withdrew) Mr J S Nolte in person
Instructed by
:
For
the 3rd
respondent:
Adv
B Vaughan
Instructed
by
: Werksmans Attorneys (Jhb)
For
the 4th
respondent:
Mr W
Jacobs
(Willem Jacobs and
Associates)
For
the 5
th
respondent:
no appearance
[1]
Safari Dried Fruit was acquired by the fifth respondent which trades
as Pepsico.
[2]
I understand this to be a reference to the FDO and Drug
Administration Authority of the United States of America.
[3]
I draw this latter conclusion from the evidence which suggest that
in one form or another Baychem has joined forces with the
third
respondent to produce fruit drying oil under the third respondent's
auspices.
[4]
Chemtoll has concluded non-disclosure agreements ("NDA's")
with both the applicant and SOILL.
[5]
Although not explicitly explained in the papers, I have ascertained
through some research on the internet that a toll manufacturer
is a
manufacturer who produces or manufactures a product using the raw
materials and specifications provided by its customer
and does so
for an agreed fee.
[6]
See
Big
Catch Fishing Tackle (Pty) Ltd and Others v Kemp and Others
(17281/18)
[2019] ZAWCHC 20
at paras [30] to [39].
[7]
This is a distinction drawn both in SOILL's answering affidavit and
its written submissions. It was, however, made in opaque
terms which
were difficult to follow. It may be that oral evidence may make this
distinction clear.
[8]
See
Gool
v Minister of Justice
1955
(2) SA 682
(C) at 688 where the court dealt with the test set out in
Webster
v Mitchell
1948
(1) SA 1166.
[9]
I did not read the affidavits to suggest that this conclusion was
seriously challenged. The challenge was rather that the technology
was not unique. Despite this initial rebuff, Mr Nolte appears to
have had a change of heart and a business relationship of some
sort
was concluded between Mr Nolte, Baychem and SOILL.
[10]
I am mindful that Mr Nolte and Baychem's attorneys withdrew as
attorneys of record prior to the hearing of the matter.
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