Case Law[2024] ZASCA 36South Africa
Lead HV (Pty) Ltd and Another v HV Test (Pty) Ltd (1192/2022) [2024] ZASCA 36 (2 April 2024)
Supreme Court of Appeal of South Africa
2 April 2024
Headnotes
Summary: Appeal against grant of a final interdict – concerns factual findings – no basis for interference and due to effluxion of time – appeal moot.
Judgment
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# South Africa: Supreme Court of Appeal
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## Lead HV (Pty) Ltd and Another v HV Test (Pty) Ltd (1192/2022) [2024] ZASCA 36 (2 April 2024)
Lead HV (Pty) Ltd and Another v HV Test (Pty) Ltd (1192/2022) [2024] ZASCA 36 (2 April 2024)
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sino date 2 April 2024
THE
SUPREME COURT OF APPEAL OF SOUTH AFRICA
JUDGMENT
Not
Reportable
Case
no: 1192/2022
In
the matter between:
LEAD
HV (PTY) LTD
FIRST APPELLANT
BARRY
LOMBAARD
SECOND APPELLANT
and
HV
TEST (PTY) LTD
RESPONDENT
Neutral
citation:
Lead HV (Pty) Ltd and Another v HV Test (Pty) Ltd
(1192/2022)
[2024] ZASCA 36
(2 April 2024)
Coram:
Ponnan, Mbatha and Goosen JJA and Coppin and Tolmay AJJA
Heard:
11 March 2024
Delivered:
2 April 2024
Summary:
Appeal against grant of a final interdict – concerns factual
findings – no basis for interference
and due to effluxion of
time – appeal moot.
ORDER
On
appeal from:
Gauteng Division of the High Court, Johannesburg
(Ternent J, sitting as court of first instance):
1
The appeal is dismissed.
JUDGMENT
Tolmay
AJA (Ponnan, Mbatha and Goosen JJA and Coppin AJA concurring):
[1]
This is an appeal, with the leave of this Court, against the grant of
a final interdict
by the Gauteng Division of the High Court,
Johannesburg (per Ternent J) (the high court). Lead HV (Pty) Ltd (the
first appellant)
and HV Test (Pty) Ltd (the respondent) are both
suppliers of goods and services in the medium, high and extra high
voltage electrical
engineering field and are in direct competition
with each other. Mr Lombaard (the second appellant) is the general
manager of the
first appellant. During 2020 two of the respondent’s
former employees, Ms Sheik (Sheik) and Mr Ledwaba (Ledwaba), who were
subject to a restraint of trade agreement with the respondent,
obtained employment with the first appellant.
[2]
An Anton Piller interdict was obtained against Sheik, Ledwaba and the
appellants on
10 September 2020 and confidential information that
belonged to the respondent was found in possession of Sheik and
Ledwaba. The
respondent alleged that they provided the appellants
with this information in breach of the restraint of trade. The
respondent
said this information was used to advance the business of
the appellants to the detriment of the respondent.
[3]
This prompted the respondent to launch an urgent application against
the appellants,
Sheik and Ledwaba, seeking an interdict to prevent
them from dealing with its confidential information, approaching its
clients
and/or disclosing the identities of any party with whom the
confidential information may have been shared. The respondent also
sought to enforce the restraint of trade against Ledwaba and Sheik.
Only the appellants opposed the urgent application. An order
was
granted by default against Sheik and Ledwaba on 13 November 2020. The
application against the appellants was struck from the
urgent roll
for want of urgency.
[4]
The matter against the appellants thereafter proceeded in the
ordinary course and
was ultimately heard on 14 April 2021 in the
opposed motion court. On 12 August 2021, a final interdict was
granted restraining
the appellants from utilizing the confidential
information of the respondent.
[1]
[5]
It is unclear why leave to appeal was granted to this Court. The
facts reveal that
Ledwaba and Sheik, who were under a restraint of
trade, were in possession of information that they were not at
liberty to have
or use. They took up employment with the appellants,
who were direct competitors of the respondent. It cannot be said that
the
high court misdirected itself on the facts or the law, and as
counsel was constrained to concede no basis exists for interference
by this Court on appeal.
[6]
This should be the end of the matter, but the appellant faces a
further insurmountable
obstacle, namely whether there still exists a
live dispute between the parties on appeal. The relevant incidents
occurred during
2020 and the order was granted during August 2021.
Whatever harm was done to the respondent and whatever rights the
appellants
still seek to protect have become academic due to the
effluxion of time. The proverbial horse has bolted. Courts exist to
determine
live disputes and ‘. . . will not adjudicate an
appeal if it no longer presents an existing or live controversy’.
[2]
Once again as counsel was forced to accept, there no longer exists
any live dispute as between the parties.
[7]
In the result, appeal is dismissed.
R
G TOLMAY
ACTING
JUDGE OF APPEAL
Appearances
For appellants:
J Vorster
Instructed by:
L A Stuart Inc.
Attorneys, Pretoria
Van der Berg Van
Vuuren Attorneys, Bloemfontein
For respondent:
A W Pullinger
Instructed by:
Van Zyl Johnson
Inc., Johannesburg
Kramer Weihmann
Attorneys, Bloemfontein
[1]
The order that issued reads:
102.1
The first and fourth respondents are interdicted and/or restrained
from:
102.1.1
utilising, communicating or publicising any of the applicant’s
confidential information comprising of the applicant’s:
(a)
customer lists;
(b)
training lists; and
(c)
follow quotes lists,
(“the
confidential information”);
102.1.2
utilising or publicising customer contact details of persons with
whom the applicant deals;
102.1.3
approaching directly or indirectly (or assisting any other person in
approaching directly or indirectly, any customer
or employee of the
applicant in order to unlawfully compete with the applicant, for
their benefit or the benefit of any other
person in respect of any
contract with which the applicant has tendered, bid or was
negotiating at any time up to and including
13 November 2020;
102.1.4
accessing or utilising the confidential information which has come
into their possession in consequence of their employment
of the
second and third respondents.
102.2
Ordering Lead HV to disclose, with sufficient particularity, the
details of any person, close corporation,
company or partnership
with whom they have attempted or have conducted business utilising
the confidential information.
102.3
Ordering the first and fourth respondents to dispose, delete and
destroy the applicant’s confidential
information, however
stored, and to inform the app that they have done so within 10 (ten)
days of this order.
102.4
Ordering the first and fourth respondents to pay the costs of this
application on the attorney and client
scale, jointly and severally,
the one paying the other to be absolved.’
[2]
Police
and Prisons Civil Rights Union v South African Correctional Services
Workers' Union and Others
[2018] ZACC 24
;
[2018] 11 BLLR 1035
(CC);
2018 (11) BCLR 1411
(CC);
(2018) 39 ILJ 2646 (CC);
2019 (1) SA 73
(CC) para 43. See also
Minister
of Tourism and Others v Afriforum NPC and Another
[2023] ZACC 7
;
2023 (6) BCLR 752
(CC) para 23.
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