Case Law[2025] ZAGPJHC 654South Africa
Bliss Brands (Pty) Ltd v Colgate Palmolive (Pty) Ltd and Others (2024/095598) [2025] ZAGPJHC 654 (28 February 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
28 February 2025
Headnotes
Summary: Appeal by respondent under s 18(4)(ii) of Superior Courts Act – enforcement order granted under s 18(3) in favour of respondent – requirements: (a) the existence of exceptional circumstances; (b) proof, on a balance of probabilities that: (i) respondents have suffered and will continue to suffer irreparable harm and (ii) the appellant will not suffer any irreparable harm – principles restated – exceptional circumstances a factual enquiry – history of litigation in context of the facts of the case and existence of extant order of 21 February 2024 constituting exceptional circumstances – remaining requirements established – appeal dismissed with costs of two counsel on scale C.
Judgment
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## Bliss Brands (Pty) Ltd v Colgate Palmolive (Pty) Ltd and Others (2024/095598) [2025] ZAGPJHC 654 (28 February 2025)
Bliss Brands (Pty) Ltd v Colgate Palmolive (Pty) Ltd and Others (2024/095598) [2025] ZAGPJHC 654 (28 February 2025)
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sino date 28 February 2025
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
CASE
NUMBER:
2024 / 095598
1.REPORTABLE:
NO
2.OF
INTEREST TO OTHER JUDGES: NO
3.REVISED:
NO
Judge
Dippenaar
In
the matter between:
BLISS
BRANDS (PTY) LTD
APPELLANT
and
COLGATE-PALMOLIVE
(PTY) LTD
FIRST RESPONDENT
COLGATE-PALMOLIVE
COMPANY
SECOND RESPONDENT
ADVERTISING
REGULATORY BOARD NPC
THIRD RESPONDENT
Coram:
Adams, Dippenaar JJ et Botsi-Thulare AJ
Heard:
18 February 2024
Delivered:
This judgment was handed down electronically by circulation to
the parties’ legal representatives via e-mail and by being
uploaded to the electronic platform. The date and time for hand-down
is deemed to be 10h00 on the 28
th
of FEBRUARY 2025.
Summary:
Appeal by respondent under s 18(4)(ii) of Superior Courts Act –
enforcement order granted under s 18(3) in favour of respondent
–
requirements: (a) the existence of exceptional circumstances;
(b) proof, on a balance of probabilities that: (i)
respondents have
suffered and will continue to suffer irreparable harm and (ii) the
appellant will not suffer any irreparable harm
– principles
restated – exceptional circumstances a factual enquiry –
history of litigation in context of the
facts of the case and
existence of extant order of 21 February 2024 constituting
exceptional circumstances – remaining requirements
established
– appeal dismissed with costs of two counsel on scale C.
ORDER
On
appeal from:
The Gauteng Division of the High Court, Johannesburg
(Manoim J sitting as Court of First Instance)
1.
The appeal is dismissed with costs, such costs to include the costs
consequent upon the employment of two counsel, one being senior
counsel, on Scale C.
JUDGMENT
DIPPENAAR
J (ADAMS J et BOTSI-THULARE AJ concurring)
:
[1]
This
is an automatic appeal in terms of s 18(4)(ii) of the Superior Courts
Act (‘the Act’)
[1]
in terms of which the appellant, Bliss Brands (Pty) Ltd (‘Bliss’)
seeks to set aside an order granted by Manoim J (‘the
court
a
quo’
)
on 27 January 2024 (‘the enforcement order’) under s
18(1), read with s 18(3) of the Act. In terms of that order,
it was
directed that the order of Manoim J of 13 December 2024 (‘the
December judgment’) be enforced pending the appeal
of that
judgment to the Supreme Court of Appeal. The enforcement order in
relevant part provides:
‘
1.
The operation and execution of the order of Manoim J dated 13
December 2024 is not suspended by any application for leave to
appeal
or any appeal and will continue to operate and be executed in full,
until the final determination of all present and future
leave to
appeal applications and appeals;
2. The First
respondent (‘BLISS’) is to pay the costs of this
application such costs to include the costs consequent
upon the
employment of one senior and one junior counsel on scale C’.
[2]
Bliss contended that the court
a
quo
erred in finding that the
requirements of s18(1) and s 18(3) of the Act were satisfied. The
first and second respondents, (collectively
referred to as ‘Colgate’)
opposed the application and contended the opposite. The third
respondent, the Advertising
Regulatory Board NPC (‘ARB’),
did not participate in the appeal.
[3]
The order of Manoim J in the December 2024
judgment provides in relevant part:
‘
The
First Respondent [Bliss] is directed to comply with paragraph 3 of
the Manoim J order, forthwith, and no later than 15 working
days from
the date of this order, by withdrawing the Offending Packaging and
the Latest Offending Packaging, depicted in Annexures
B and C annexed
to the Notice of motion, from every medium in which they appear, over
which the second respondent has jurisdiction,
by virtue of them being
members’.
[4]
The
Manoim J order referred to is an order which was granted on 21
February 2024
[2]
in review
proceedings launched by Bliss against a ruling of the ARB’s
Final Appeal Committee (FAC) during August 2020. That
order was never
the subject matter of an appeal and remains extant.
[5]
To contextualise the present appeal, it is
necessary to set out the litigation history between the parties in
some detail, which
has endured for some five years. This is necessary
as the primary contentions of Colgate for the existence of
exceptional circumstances
are predicated on that history.
[6]
Colgate and Bliss both produce a
functionally similar product, known as hygiene soap; Colgate under
the name Protex and Bliss under
the name Securex. Colgate first made
a complaint with the ARB during December 2019 pertaining to Bliss’
similar packaging.
The complaint went through the ARB’s
internal processes. The ARB’s Advertising Appeals Committee
(‘the ACC’)
found in favour of Colgate.
[7]
Bliss appealed to the FAC. The FAC finally
decided the matter on 3 August 2020 with its Chairperson, Ngoepe JP,
as the presiding
member, exercising a casting vote in favour of
Colgate. The FAC held that Bliss breached clause 8 (which deals with
exploiting
the advertising goodwill of a member’s product) and
clause 9 (which deals with imitation of another’s packaging) of
the ARB’s Code, given the substantial overall similarity
between the two competing architectures of the packaging. It accepted
that creativity should not be stifled but found that ‘
to
allow imitation masquerading as creativity does nothing to nurture or
encourage the latter’
. It held
that Bliss, in introducing Securex, was ‘
inspired
by Protex’s secret sauce on a number of levels. This
inspiration, instead of resulting in a healthy, competitive
visual
distance (visual differentiation) between Protex and Securex actually
had the opposite effect. Instead of taking a spoonful
of inspiration
from Protex’s design, Securex opted to take a spade full of
inspiration. This has resulted in a significant
reduction of the
perceptual distance between the two brands’ design
architecture. Consumers can be forgiven for getting confused
between
the two brands when standing in front of a supermarket shelf’
.
The FAC ruling directed Bliss to comply with the ACC ruling by 30
September 2020.
[8]
Bliss
sought to interdict the implementation of the ARB’s award,
which failed before Yacoob J on 28 September 2020, who dismissed
the
application. Bliss launched a review application, which was heard by
Fisher J, who
mero
motu
raised a constitutional issue pertaining to the ARB’s
jurisdiction and sought submissions from the parties. Bliss had
submitted
to the ARB’s jurisdiction. Bliss amended its notice
of motion to incorporate such constitutional issue. Fisher J resolved
the jurisdictional issue in favour of Bliss on 21 May 2021, based on
findings of unconstitutionality, resulting in no findings
being made
on the merits of the review application. An appeal to the Supreme
Court of Appeal followed, resulting in the order of
Fisher J being
overturned and the constitutional challenge being dismissed.
[3]
The merits of the review application was remitted to the High Court.
Bliss approached the Constitutional Court which, in refusing
leave to
appeal, held that because Bliss consented to the jurisdiction of the
ARB, it was not in the interests of justice to entertain
any other
issue in the matter. It further held that where a non-member submits
to the ARB’s jurisdiction, the ARB can make
directions which
are binding on the non-member.
[4]
[9]
The review application was heard by Manoim
J, who on 21 February 2024, granted an order dismissing the review
and upholding the
relief granted by the FAC. He held that there was
no reason to review the findings of the FAC that Bliss had
contravened clauses
8 and 9 of the ARB’s Code. He further did
not review the sanction imposed by the FAC. An order was further
granted reconsidering
and discharging an interim interdict granted by
Fisher J in favour of Bliss on 30 November 2020. Manoim J further
granted an order
that ‘
Bliss must
comply with the FAC decision within three months of date of this
order. This applies to dissemination of new packaging,
and does not
require on-shelf removal.’
[10]
Bliss indicated that it would comply with
the order and launched new packaging in the market in May 2024.
Colgate, being of the
view that the new packaging too closely
resembled the infringing packaging and only slightly modified it and
that Bliss still continued
to market the offending packaging on
various online platforms, took the matter to the ARB on 17 July 2024
with a detailed breach
complaint. The issue was whether or not the
slightly modified packaging sufficiently departed from the offending
packaging under
clause 3.6 of Section 1 of the Code.
[11]
The matter came before the Chairperson of
the FAC, Ngoepe JP. On 12 August 2024, he ruled that the May 2024
packaging was not compliant
and that the new packaging was a
continuation of and part and parcel of the offending packaging. He
held that ‘
minor alterations were
effected but those were insignificant
’.
He ordered Bliss to, amongst others, remove the offending
packaging and the slightly modified packaging from all
mediums in
which it appears (the breach ruling). Colgate sought an
undertaking that Bliss would respect the Manoim J order
and Ngoepe
JP’s breach ruling. No undertaking was forthcoming. Bliss
adopted the stance that the ruling was incorrect and
as a result it
would not be complying with it.
[12]
Colgate thereafter approached the High
Court for urgent interdictory relief. Bliss in turn launched an
urgent application to suspend
the breach ruling pending a review. The
applications were heard on the same date by Vally J. Colgate
contended that Bliss was in
contempt of the Manoim J order in two
respects: (i) tampering with the old packaging in such a way that in
all material and important
aspects it remained unchanged; and (ii)
failing to remove the advertisement of Securex in the old packaging
from certain websites.
[13]
Bliss adopted the stance that it had made
significant changes to the old packaging, departing from the
characteristics identified
in the ruling as being offensive and had
complied with the Manoim J order. Bliss argued that the correct
approach in determining
the allegation of contempt was to compare the
new Securex packaging with that of Protex.
[14]
On 11 October 2024, an order was granted by
Vally J, holding Bliss in contempt of the Manoim J order, together
with certain costs
orders. Bliss was further ordered ‘
to
comply with paragraph 3 of the Manoim J order, forthwith, and no
later than 30 calendar days from the date of this order, by
withdrawing the offending packaging and the slightly offending
packaging …from every medium in which it appears’.
[15]
It was further ordered: ‘
In
the event that the First Respondent [Bliss] fails to comply with this
order the Applicants are authorised to approach the Court
on the same
papers, duly supplemented, for further relief’,
thus
entitling Colgate to merely supplement those papers in any further
application, whilst relying what had already been stated.
Vally J
struck Bliss’ suspension application from the roll, directing
that it was not entitled to enroll the matter until
it had purged its
contempt of the Manoim J order.
[16]
Whilst
finding that there appeared to be significant differences between the
packaging of Securex (old and new) and that of Protex,
Vally J held
that such comparison was irrelevant as it had already taken place and
was the focus of the hearings before the ARB,
the FAC and the review
application before Manoim J. He held that a decision on the
similarities between Protex and Securex occurred
in those fora and it
was not a matter that could be revisited. Vally J found that the old
and new Securex packaging had to be compared.
[5]
Vally J concluded that the Manoim J order had not been complied with
as the changes to the old packaging were insufficient and
Bliss
continued to advertise with the old packaging.
[6]
He held that the May packaging was ‘
willfully
designed so as not to be materially distinguishable from what existed
previously’.
[7]
[17]
The contempt order is the subject of a
pending appeal before the Supreme Court of Appeal, and an enforcement
application under s
18(3) of the Act. That enforcement application
remains pending. Leave to appeal to the Supreme Court of Appeal was
granted by Vally
J on 6 November 2024.
[18]
During November 2024, Colgate launched a
further urgent contempt application which was heard by Manoim J. That
resulted in the December
judgment, delivered on 13 December 2024. In
that application, Colgate incorporated the contents of its founding
affidavit in the
proceedings before Vally J in its founding
affidavit. Bliss in its answering affidavit, did the same. Bliss
maintained that it
was obliged to change its packaging and did so in
October 2024, pursuant to Vally J’s order. The main debate on
the merits
was what Manoim J termed ‘the measurement issue’.
Bliss contended that in determining whether it has infringed, the
correct comparison was between the Colgate packaging which was found
to have infringed and the present Bliss packaging (the October
packaging), i.e. the visual distance between the 2019 Protex
packaging and the October 2024 Securex packaging. It argued that
applying that metric it would be clear that the October packaging has
a number of features which differentiate it from the 2019
Protex
packaging. Bliss further argued that even if the correct metric was a
comparison of its May 2024 to October 2024 packaging
there would
still be no infringement given the sufficient visual distance between
the two. Colgate contended the opposite, arguing
that the correct
comparison was between the different versions of Securex and that
there was still infringement.
[19]
Manoim
J compared the May 2024 and October 2024 Securex versions. Relying on
Rule 3.6 of the Code
[8]
, he
concluded that the visual distance was slight. Reliance was further
placed on the approach adopted by courts in relation to
visual
distance in trademark cases, such as
Broderick
[9]
and
PPI
Makelaars
[10]
.
In
the latter, the Supreme Court of Appeal held that once a party has
been found to be in breach, they must keep a ‘safe distance’
from the margin line, even if it involves a ‘handicap’.
Reference was also made to
Milestone
Beverage CC
,
wherein it was held that the memory and impression created in the
mind of the public was not erased and hence the advertising
material ‘cast its shadow backwards’
[11]
.
Manoim J held that Bliss had continued to operate too close to the
margin line and was reluctant to introduce the kind of change
the law
required. An order was granted that the October 2024 packaging
infringed the Manoim J order and that Bliss was in breach
of it,
together with an order directing Bliss to comply with paragraph 3 of
the Manoim order, already referred to.
[20]
Bliss sought leave to appeal the judgment.
Colgate in turn, launched the s 18(3) enforcement application forming
the subject matter
of this appeal and an application for leave to
appeal a portion of the order to extend the ambit of the relief
granted in its favour
to non ARB members. The underlined portion of
that order is repeated for ease of reference.
‘
Directing
Bliss to comply with paragraph 3 of the Manoim J order, forthwith and
no later than 15 working days from the date of the
order by
withdrawing the offending packaging depicted in Annexures B and C
annexed to the Notice of motion and the latest offending
packaging
from every medium in which they appear,
over
which the ARB has jurisdiction, by virtue of them being members
’
(Emphasis added.)
[21]
In granting leave to appeal to Bliss, it
appears by necessary inference that the court
a
quo
considered the fact that leave to
appeal on the same issues had already been granted to the Supreme
Court of Appeal by Vally J,
as a compelling reason under s
17(1)(a)(ii) of the Act to grant leave to appeal. In considering the
s 18(3) application, the court
a quo
held that Colgate had strong prospects of success on appeal, by
necessary inference, that Bliss did not. Colgate’s counter
application for leave to appeal was also granted. Bliss noted its
appeal on 6 February 2025.
[22]
Against this backdrop I turn to consider
the merits of the appeal. Section 18 in relevant part provides:
“
18. Suspension
of decision pending appeal
(1) Subject to
subsections (2) and (3), and unless the court under exceptional
circumstances orders otherwise, the operation and
execution of a
decision which is the subject of an application for leave to appeal
or of an appeal, is suspended pending the decision
of the application
or appeal.
(3) A court may only
order otherwise as contemplated in subsection (1) or (2), if the
party who applied to the court to order otherwise,
in addition proves
on a balance of probabilities that he or she will suffer irreparable
harm if the court does not so order and
that the other party will not
suffer irreparable harm if the court so orders’.
[23]
The
relevant principles are well established The most recent judgment of
the Supreme Court of Appeal on the issue,
Tyte
Security Services CC v Western Cape Provincial Government and
Others,
[12]
was quoted extensively in the judgment of the court
a
quo
and it is not necessary to repeat it
.
In
University
of the Free State v Afriforum (‘UFS’),
the Supreme Court of Appeal confirmed that the existence of
exceptional circumstances must be fact-specific and ‘
be
derived from the actual predicaments in which the given litigants
find themselves’.
It further confirmed that a court may take into account a party’s
prospects of success on appeal when considering whether
to grant
enforcement relief.
[13]
[24]
Colgate’s application under s 18(3)
was centrally predicated on the Manoim J order granted on 21 February
2024. Its case was
that exceptional circumstances existed to direct
enforcement as Bliss on an ongoing basis failed to comply with
paragraph 3 of
that order by continuing to advertise the offending
packaging, introducing packaging with barely perceptible changes in
the slightly
modified offending packaging (May 2024) and the latest
offending packaging (October 2024), both with imperceptible changes
from
what the FAC and Manoim J had found to be breaches of the Code.
It submitted that the effect was that Bliss essentially reintroduced
the very packaging it was ordered to withdraw, twice, under the guise
of compliance. It submitted that the suspension of the breach
order
would allow Bliss to perpetuate its failure to comply with the Manoim
J order and further undermine the authority of this
court. This
argument rested on four pillars: that suspension would (i) allow
Bliss to perpetuate its disobedience of court orders;
(ii) would
result in a loss of efficacy of the strict timeline imposed for
compliance; (iii) would allow Bliss to continue its
four-year
campaign to evade accountability for its breaches of the ARB Code and
continue to mislead the public and; (iv) would
result in a loss of
efficacy of the Manoim J order and Colgate’s rights to
enforcement.
[25]
Bliss on the other hand submitted that no
truly exceptional circumstances had been illustrated. It contended
that Colgate’s
founding affidavit had two fatal flaws: first,
it failed to allege any conduct which would fall within the scope of
the breach
order. Second; it failed to allege that despite the
withdrawal of its 2019 Protex packaging from the marketplace, it
retained a
goodwill in that packaging which would justify any finding
that exceptional circumstances or irreparable harm were illustrated.
[26]
These arguments are flawed. The substance
of the enforcement order was to give effect to the February 2024
order which remains extant
and was not the subject matter of any
appeal. The goodwill of Colgate in the 2019 packaging was established
in the proceedings
before the ARB and was dealt with in the review
proceedings. The finding of the FAC that Bliss exploited the
advertising goodwill
of Colgate’s Protex packaging
architecture, in contravention of clause 8 of the Code stands.
Similarly, the finding that
Bliss imitated the Protex packaging
architecture, in contravention of clause 9 of the ARB code, stands.
These finding were never
challenged. There is also no basis to
conclude on the papers that Colgate has not retained any goodwill in
its Protex packaging
and its architecture, which endures beyond any
changes thereto. It is not open to Bliss to mount what is effectively
a collateral
challenge to those findings in the present proceedings.
[27]
Insofar as the order further refers to the
‘latest offending packaging’ which Bliss commenced using
in the marketplace
during October 2024, the court
a
quo
considered that packaging,
comparing it to its previous iterations, and found it was lacking as
it was ‘too close to the margin
line’ and remained
confusingly similar. It cannot be concluded on the papers that such
conclusion was wrong. It was not disputed
that Bliss still marketed
its products and has not been excluded from the market place. Bliss’
stance was that it was entitled
to do so. The existence of
exceptional circumstances is not solely reliant on whether Bliss is
presently in factual breach by selling
to ARB members, as Bliss
appears to suggest.
[28]
Bliss’
contention that the court
a
quo
erred in considering the three requirements holistically, does not
bear scrutiny if the judgment of the court
a
quo
is read in totality and in context. A court of appeal must not
scrutinise the language of a judgment as if it were a statute.
[14]
It cannot be concluded that the court
a
quo
failed
to apply the relevant test correctly or deviated from the relevant
principles.
[29]
Bliss’ submission that the s 18(3)
application constitutes an oddity, given that Colgate has cross
appealed, loses its force
if considered in context. In the appeal,
Colgate wishes only to extend the ambit of the order to include non
ARB members, an issue
expressly excluded from the enforcement order.
It does not seek to disturb the order granted in its favour.
[30]
Bliss placed reliance on the fact that the
very issue of breach of the Manoim J order and whether Bliss had done
enough to distance
its May 2024 and October 2024 packaging were
issues that the Supreme Court of Appeal (‘SCA’) must
determine. It was
argued that the consequence was that if Bliss were
to be successful in the SCA and a proper comparison requires a
comparison with
the 2019 Protex packaging, Bliss would not have been
in breach and everything underpinning Colgate’s exceptionality
fell
apart as there would be no basis for the enforcement order.
[31]
These submissions disregard that what Bliss
has secured is a suspension of paragraph 3 of the Manoim J order,
which judgment is
extant, thus thwarting any attempt by Colgate to
enforce its rights. That points to the existence of exceptional
circumstances,
specifically when considered with the history of the
litigation already referred to.
[32]
It
was undisputed that to assess exceptional circumstances, a court will
also have regard, as best as it is able in the given case,
to the
applicant’s prospects of success in the pending or prospective
appeal’.
[15]
Bliss
argued that, as leave to appeal had been granted in its favour, that
was the end of the debate and an argument surrounding
prospects of
success was no longer open to Colgate. I do not agree. The
principle applies both to a pending application for
leave to appeal
and an appeal. The principle was stated thus in
Justice
Alliance
[16]
,
approved in
UFS:
‘
The
less sanguine a court seized of an application in terms of s18(3) is
about the prospects of the judgment at first instance being
upheld on
appeal, the less inclined it will be to grant the exceptional remedy
of execution of that judgment pending the appeal.
The same quite
obviously applies in respect of a court dealing with an appeal
against an order granted in terms of s 18(3)
’.
[33]
Considering
the architecture of s 18(1), which refers to the operation and
execution of a decision that is the ‘
subject
of an application for leave to appeal or appeal
’,
It is thus one of the jurisdictional facts which must be present
before an enforcement order may be sought.
[17]
It envisages a situation where enforcement may be sought also in
proceedings which are the subject matter of an appeal, put
differently,
where leave to appeal has been granted. That fact that
leave to appeal has been granted is thus not destructive of an
application
to enforce, nor does is weigh against the granting of
relief. It is a neutral fact and a consideration of the prospects of
success
on appeal should still be considered, if the facts permit it.
In the present instance, the record of the proceedings which
culminated
in the December 2024 order is available and it is thus
possible to gauge the prospects of success of appeal, as the court
a
quo
did.
[34]
Seen in this context, Bliss’ argument
that the entire substratum of Colgate’s case of exceptionality,
rests on a basis
which would fall away if the appeal is successful,
does not avail it as it equates the existence of the granting of
leave to appeal,
with a reasonable prospect of success on appeal.
[35]
The basis on which Bliss obtained leave to
appeal the breach order, was a compelling reason, rather than good
prospects of success.
The court
a quo
held that Colgate’s prospects of success on appeal were good
and, by necessary inference, that those of Bliss were not. The
court
a quo
was
well placed to consider the issue, given that he granted both the
Manoim J order and the breach order. In the present instance
the
appeal record is available and it cannot be concluded that the court
a quo’s
stance
or basis of evaluation of the prospects of success on appeal were
incorrect.
[36]
The
very test proposed by Bliss was rejected in each of the fora in which
the issue was determined, including the proceedings before
Ngoepe JP,
Manoim J and Vally J. Moreover, in considering clause 3.2
[18]
and clause 3.6
[19]
of the ARB
Code and the relevant legal principles which require Bliss to depart
significantly from the offending packaging rather
than to present
blurring versions thereof, it cannot be concluded that Colgate’s
prospects of success are so poor as to preclude
a finding of a
sufficient degree of exceptionality to justify an order under s 18.
Rather, the facts support the conclusion reached
by the court
a
quo
that
Colgate’s prospects of success on appeal are strong.
[37]
Bliss‘
contention that the infringement of rights contended for by Colgate
was not of itself exceptional circumstances without
proof of any
adverse consequences, does not bear scrutiny. The court
a
quo’s
finding that the history ‘shows that Bliss was, despite
constant failure, undeterred from pursuing its goal, first of keeping
the infringing packaging in the market, and when that avenue was
closed by the Manoim J order, opting to introduce variants that
closely resembled the infringing packaging. Its strategy has paid off
for it thus far’
[20]
,
is
supported by the facts. Colgate’s complaint that Bliss
has benefitted from exploiting its rival’s goodwill
undeterred
from adverse findings against it for a considerable period whilst
remaining in and expanding its advertisement footprint
in the market,
and thus continuing the ‘windfall’ which it has received,
evidences the adverse consequences suffered
by it.
[38]
Considering
the facts, there are thus exceptional circumstances present which
justify the deviation from the norm
[21]
and the court
a
quo
cannot
be faulted in its conclusion. The factual background to the
litigation as set out in some detail, illustrates this as well
as
existence of the Manoim J order. In the words of the court
a
quo: ‘The lengthy history viewed holistically takes the matter
beyond the ordinary to the exceptional’.
[22]
[39]
Although
the factual matrix is somewhat different, there are some analogies to
be drawn between the present facts and the decision
of the Full Court
in
Matinyarare
and
Another v Innscor Africa and Another
,
[23]
bearing
in mind that each case is to be decided on its own facts.
[24]
There, the appellant defied orders which had been granted against him
without taking any of the orders on appeal. Bliss in the
present
instance, did not appeal the Manoim J order, which must be obeyed.
As held in
Matinyarare
,
a party must expect to suffer harm of a kind that is ordinarily
associated with the appellate process taking its course, without
interim redress. But harm that is out of the ordinary requires
intervention. Where a party runs the real risk of irreparable damage
to its good name and reputation, built up over many years, this
constitutes an exceptional circumstance in addition to representing
irreparable harm.
[25]
The same
applies in the present instance in relation to Colgate’s
goodwill.
[40]
I
am persuaded that Colgate has established that it would suffer
irreparable harm if relief is not granted and that it has done
so
with reference to an actual predicament rather than a theoretical
one. Colgate is deprived of the right to enforce the Manoim
J order
and the ARB rulings which underpin it, which order remains extant.
Colgate’s two successful attempts to enforce that
order, have
both been taken on appeal, resulting in the order which was not
appealed, being suspended. Any future endeavour by
Colgate to enforce
the order is likely to suffer the same fate. It is well established
that unless orders made by courts are capable
of being enforced by
those in whose favour the orders were made, the constitutional right
of access to courts will be rendered
an illusion.
[26]
[41]
Bliss contended that it is not currently
marketing any version of its offending packaging with ARB members. It
was undisputed that
Bliss marketed those products via Makro. Although
the court
a quo
found
that it was not able to definitively determine that Makro (Masstores
(Pty) Ltd t/a Makro) was an indirect member of the ARB,
by virtue of
its membership of the Marketing Association of South Africa (‘MASA’),
and thus that Bliss breached the
Manoim J order, that is not a
determinative issue. If the relevant affidavits are read in context,
including the parties’
affidavits in the proceedings before
Vally J, incorporated therein by reference, Makro’s membership
of MASA and hence of
the ARB was accepted by the parties. More
importantly, Bliss’ failure to give any undertaking not to
market the offending
packaging with ARB members pending the
conclusion of the appeal processes, lends credence to Colgate’s
stated apprehension
of ongoing and irreparable harm and bolsters
Colgate’s case of exceptionality.
[42]
Colgate,
in my view, established that, if relief were not granted, Bliss would
get a windfall. The high water mark of its defences
were that an
incorrect test was applied by both Vally J and Manoim J and that
Colgate had not established the necessary goodwill.
It never disputed
that Bliss has benefited from the current position or that it has
received a windfall by being able to market
the impugned packaging
until the appeal against Manoim J’s December judgment is
decided. I agree with the proposition that
if Bliss is retaining or
increasing its market share on the basis of packaging that is based
on Colgate’s goodwill, it will
have improved its position in
the marketplace illegitimately at Colgate’s expense, as held by
the court
a
quo.
[27]
The refusal by Bliss to provide any undertaking that pending the
finalisation of the appeals, it would not market any of its offending
packaging with ARB members, is significant. Given the history of the
matter, there is a cogent basis for Colgate’s reasonable
apprehension of ongoing and irreparable harm, were the enforcement
order not granted.
[43]
Bliss’
submission that Colgate can recover damages in a passing off action,
and thus has a suitable alternative remedy does
not bear scrutiny.
Not only are such damages notoriously difficult to prove, but as
pointed out by the court
a
quo,
it would mean that such relief would have to be based on a different
cause of action, not the present contravention of the ARB
Code. An
award for damages is in any event a poor substitute for diminished
goodwill.
[28]
[44]
Colgate’s case is that Bliss’
offending packaging and latest offending packaging continue to
imitate and infringe the
goodwill in Colgate’s Protex
packaging, resulting in ongoing irreparable commercial harm. It has
been deprived of its rights
to enforce the ARB’s rulings
against Bliss for some four years. The breach order imposes strict
timelines of 15 working days,
which will expire long before
exhaustion of the appeal. Each of the forums which dealt with the
matter found that Bliss must be
accountable. Its response was to
reintroduce on two occasions, similar iterations of the very
packaging it was ordered to withdraw.
It benefitted in the process,
doubling down on its advertising, exponentially increasing its
revenue and market share with the
offending packaging and its
variations, after it was found in breach of the Code. The May 2024
and October 2024 iterations are
so close that only careful scrutiny
would detect any difference and are not visually distant in any
manner detectable to ordinary
shopper who does not engage in detailed
scrutiny exercise. The effect of the last offending package is that
Bliss will be permitted
to cast the shadow backwards. The factual
similarities between the various offending packages are self- evident
as held by both
Vally J and Manoim J and the tests applied fall
within the mainstream of the applicable decisions, as held by the
court
a quo
.
Bliss consciously elected to stay as close as possible to the margin
line and did not elect to stay well away from it. Considering
the
facts and the visual similarities between Bliss’ various
packaging iterations, Colgate’s case is compelling.
[45]
The
court
a
quo
was correct to find that Colgate has illustrated irreparable harm and
that the present scenario is aligned to that in
Tyte
.
[29]
Here too, if the court does not grant relief to Colgate, Bliss would
get a windfall by being able to market the impugned packaging
until
the appeal is decided without Colgate having an effective remedy at
its disposal. It must be borne in mind that both the
Manoim J order
and the breach order set specific and narrow timelines for
compliance, which have long passed. To argue, as Bliss
does, that it
is open to Colgate to institute further breach proceedings, rings
hollow, considering the passage of time and the
history of the
litigation between the parties. To criticise Colgate for not
providing a detailed substantiation of the financial
harm at issue,
does not pass muster, considering the type of financial harm at
stake.
[46]
On
the issue of an absence of irreparable harm to Bliss, the court
a
quo
held:
[30]
‘
[36]
In contrast Bliss has not made out a case for irreparable harm to
itself. In relation to this as was observed in
Tyte
the respondent in an 18(3) application whilst
not facing an onus at least has an evidential burden. But Bliss has
not made out any
case here of how it will be prejudiced in the market
going forward. …
[38] Nor should there
be any sympathy for Bliss. It has had ample time to change its
packaging. Given that it has tweaked its packaging
twice since the
Manoim J order was issued in February 2024, the logistics and expense
of changing packaging has clearly not proved
insuperable. The fact
that it has chosen to make changes so close to the margin line is the
reason why it has been found in contempt
by Vally J, and in breach by
me, in my December order. This is an outcome it could have avoided.
There is no reason why Colgate
must be further prejudiced as a result
of Bliss’ decision to take the most minimal steps to comply.
Bliss has not been
excluded from the market. Only insofar as its packaging contravenes
the ARB Code. Moreover, the order which I
granted in December
contains a carve out permitting it to market even the impugned
October packaging, in non-member outlets’.
[47]
It
is clear that the court
a
quo
performed
a balancing exercise of the irreparable harm to be suffered by
Colgate and the absence thereof to Bliss and determined
the issue in
favour of Colgate, albeit that Bliss did not present evidence in
rebuttal of Colgate’s contentions. The court
a
quo
clearly took the position of Bliss into account. As held in
Tyte
,
the enquiries as to irreparable harm to Colgate and the absence
thereof to Bliss are two sides to the same coin, both enquiries
to be
informed by the same facts and circumstances and hardly mutually
exclusive.
[31]
In coming to
its conclusion, the court
a
quo
took
account of all the facts and circumstances and its conclusion cannot
be faulted.
[48]
It
cannot be ignored that Bliss had two opportunities to amend its
packaging and did so, shortly after the Manoim J order and the
Vally
J order. In the process it elected exactly changes it wanted to
effect to the offending packaging. For Bliss to simply adopt
the
position that Colgate had not made out a case because it contends
that Bliss does not have any loss worthy of legal protection,
[32]
disregards the entire basis of Colgate’s case and does not bear
scrutiny. Colgate contends that Bliss has no entitlement
to the
protection of any financial or reputational benefits improperly
garnered from its continued breaches of the ARB Code, the
FAC ruling
and the Manoim J order. It further contends that any harm occasioned
to Bliss is not as a result of the breach order,
but in consequence
of the Manoim J order and the FAC ruling and that the beach order
merely seeks to enforce the pre-existing legal
obligations. Were
Bliss to have contented otherwise, it should have produced facts in
discharge of its evidentiary burden on the
issue. It chose not to,
despite any such facts being peculiarly within its knowledge.
[49]
In these circumstances, Bliss’
submission that Colgate failed to allege that enforcing the judgment
would not cause Bliss
harm and hence has not discharged its onus,
does not bear scrutiny.
[50]
In conclusion, the court
a
quo’s
finding that the
requirements of s 18(3) have been met, cannot be faulted. For the
reasons provided, I agree with those conclusions.
It follows that the
appeal must fail.
[51]
There is no reason to deviate from the
normal principle that costs follow the result. Considering the
complexities involved, the
employment of two counsel was warranted.
Colgate sought a punitive costs order on the scale as between
attorney and client. I am
not persuaded that such a costs order is
warranted in the present circumstances.
[52]
In the result, the following order is
granted:
The appeal is dismissed
with costs, such costs to include the costs consequent upon the
employment of two counsel, one being senior
counsel, on scale C.
EF
DIPPENAAR
JUDGE
OF THE HIGH COURT JOHANNESBURG
HEARING
DATE
OF HEARING
:
18 FEBRUARY 2025
DATE
OF JUDGMENT
:
28 FEBRUARY 2025
APPEARANCES
APPELLANT’S
COUNSEL
:
Adv. C D A Loxton SC
Adv. I Learmonth
APPELLANT’S
ATTORNEYS
:
Eversheds Sutherland
SA Inc.
Ms S Pluke
FIRST
AND SECOND
RESPONDENTS’
COUNSEL
:
Adv G Marcus SC
Adv R Michau SC
Adv L Harilal
Adv Chris McConnachie
FIRST
AND SECOND
RESPONDENTS’
ATTORNEYS
:
Kisch Africa Inc
Mr A Papadopoulos/ Ms T
Pretorius
THIRD
RESPONDENTS’ ATTORNEYS
: Willem De Klerk
Attorneys
Mr W De Klerk
No appearance.
[1]
10 of 2013.
[2]
Dealt with in para 9 below.
[3]
Advertising
Regulatory Board NPC and Others v Bliss Brands (Pty) Ltd
[2022] ZASCA 51; 2022 (4) SA 57 (SCA).
[4]
Bliss
Brands (Pty) Ltd v Advertising Regulatory Board NPC and Others
[2023]
ZACC 19
para 18.
[5]
Judgment
Vally J para 10.
[6]
Para
12-14.
[7]
Para
17.
[8]
It provides: ‘
When
objections in respect of advertisements that were amended resulting
from an ARB ruling are received, both the original and
amended
version will be taken into consideration’.
[9]
Broderick
& Bascomb Rope CO v Manoff
41F
(2d) 353 (1010) pp 18-1071-18-1072, referred to in Manoim J’s
December 2024 judgment para 29.
[10]
PPI
Makelaars v PPS Provident Society of South Africa
1998
(1) SA 595 (SCA).
[11]
Milestone
Beverage CC and Others v the Scotch Whiskey Association and Others
(1037/20190
[2020] ZASCA 105
(18 September 2020) para 27.
[12]
Tyte
Security Services CC v Western Cape Provincial Government and Others
2024
(6) SA 175 (SCA).
[13]
University
of the Free State v Afriforum
2018 (3) SA 428
(SCA) paras 13 and 15.
[14]
General
Council of the Bar of South Africa v Geech and Others, Pillay and
Others v Pretoria Society and Another, Bezuidenhout
v Pretoria
Society of Advocates
2013
(2) SA 52
(SCA) paras 62 and 172.
[15]
UFS
supra, paras 14 and 15; referring with approval to
The
Minister of Social Development Western Cape & others v Justice
Alliance of South Africa & another
[2016]
ZAWCHA 34.
[16]
Ibid.
[17]
Ntlemeza
v Helen Suzman Foundation and Another
2017 (5) SA 402
(SCA) para 26-31.
[18]
It
provides:
“
In
assessing an advertisement’s conformity to the terms of this
Code, the primary test applied will be that of the probable
impact
of the advertisement as a whole upon those who are likely to see or
hear it. Due regard will be paid to each part of its
contents,
visual and aural, and to the nature of the medium through which it
is conveyed.’
[19]
It
provides:
‘
When
objections in respect of advertisements that were amended resulting
from an ARB ruling are received, both the original and
amended
version will be taken into consideration’.
[20]
S
18(3) judgment para 25.
[21]
Ntlemeza
paras
36.
[22]
Para
26.
[23]
Matinyarare
and Another v Innscor Africa and Another
[2024] ZAGPJHC 945.
[24]
Ibid, paras 34 to 35 and the authorities cited therein.
[25]
Ibid, para 38.
[26]
Secretary
of the Judicial Commission of Inquiry into Allegations of State
Capture, Corruption and Fraud in the Public Sector including
Organs
of State v Zuma and Others
[2021]
ZACC 18
, paras 59-60.
[27]
Section
18(3) judgment para 34.
[28]
Tullen
Industries Ltd v A de Souza Costa (Pty) Ltd
1976
(4) SA 218
(T) at 219H-220B.
[29]
Section 18(3) judgment para 32.
[30]
Section 18(3) judgment para 36, 38 and 39.
[31]
Para 17.
[32]
City of
Tshwane Metropolitan Municipality v Afriforum and Another
2016 (6) SA 279
(CC) para 56.
sino noindex
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