Case Law[2025] ZAGPJHC 605South Africa
Tabletpot Admin (Pty) Ltd v Jolliet and Another (2025/061274) [2025] ZAGPJHC 605 (17 June 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
17 June 2025
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Tabletpot Admin (Pty) Ltd v Jolliet and Another (2025/061274) [2025] ZAGPJHC 605 (17 June 2025)
Tabletpot Admin (Pty) Ltd v Jolliet and Another (2025/061274) [2025] ZAGPJHC 605 (17 June 2025)
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sino date 17 June 2025
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Case
Number: 2025-061274
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: YES
In
the matter between:
TABLETPOS
ADMIN (PTY) LTD
Applicant
and
REECE
JOLLIVET
First Respondent
YOCO
TECHNOLOGIES (PTY) LTD
Second Respondent
JUDGMENT
CRUTCHFIELD J
[1]
The applicant, Tabletpos Admin (Pty) Ltd,
brings urgent proceedings for the enforcement of a restraint of trade
provision together
with a confidentiality undertaking against the
first respondent, Mr Reece Jollivet, and the second respondent, Yoco
Technologies
(Pty) Ltd.
[2]
The first respondent opposes the
application on both the urgency and the merits of the application.
The second respondent does not
participate in the application.
[3]
The applicant and the first respondent
concluded an employment agreement on 17 March 2022. The
applicant employed the first
respondent from April 2022.
[4]
The first respondent resigned from the
applicant’s employ during April 2025 and his notice period
terminated on 30 April
2025. Thereafter, the first respondent
commenced employment with the second respondent on 5 May 2025,
allegedly in violation
of the restraint of trade and confidentiality
undertakings given by the first respondent in favour of the
applicant.
[5]
The applicant learned of the first
respondent’s intention to take up employment with the second
respondent on 4 April
2025, in terms of the first respondent’s
resignation letter. The applicant demanded that the first respondent
refrain from
becoming employed by the second respondent during the
12-month period immediately after the termination of the first
respondent’s
employment with the applicant.
[6]
Furthermore, the applicant demanded that
the first respondent refrain from conducting himself in any manner
that amounted to a breach
of the restraint of trade and the
confidentiality undertaking in the first respondent’s
employment contract with the applicant.
[7]
The applicant’s attorneys of record
addressed correspondence to the second respondent informing them that
the first respondent
was subject to a restraint and confidentiality
undertakings in favour of the applicant.
[8]
In short, the first respondent commenced
employment with the second respondent on 5 May 2025, remains so
employed and the applicant
seeks interdictory relief in terms of the
notice of motion.
[9]
As
to the urgency of the application, the applicant not having delayed
unduly in the launch of the application, the grounds of urgency
upon
which the applicant places reliance include that the term of the
restraint provision is one year. The applicant contends that
it will
not receive substantial redress given that the time that it will take
for the matter to be heard and judgment handed down
thereafter may
well amount to a significant part, if not the entirety of the period
during which the restraint would otherwise
be enforced, assuming that
the restraint is valid and enforceable.
[1]
[10]
In the light of the time that it would take
for the founding, answering and replying affidavits together with the
heads of argument
to be delivered and a date to be made available for
the hearing of the matter on the opposed motion roll, if the
applicant’s
application was brought and heard in the ordinary
course, the period of one year of the restraint may well be taken up,
leaving
the applicant without substantial redress at a hearing in the
ordinary course. In the circumstances, it is unlikely that the
applicant
will receive substantial redress at a hearing in due
course.
[11]
Furthermore,
the confidentiality of confidential information is time
constrained.
[2]
It would be
eroded by proceeding in the ordinary course.
[12]
In the light of my finding that it is
unlikely that the applicant will receive substantial redress at a
hearing in due course, and
the applicant not having delayed unduly in
launching the application, the matter meets the requirements of
Rule 6(12) and
qualifies to be enrolled and heard as an urgent
application.
[13]
Moreover, the first respondent has not been
deprived of sufficient time in which to deliver an answering
affidavit and prepare for
the hearing of the matter.
[14]
The applicant claims relief in the form of
a
rule nisi
,
being interim relief coupled with a return date on which the relief
is to be made final or otherwise by a court sitting in the
future.
The first respondent contends that in the light of the one year term
of the restraint, any relief that I grant will remain
in place
pending finalisation of the return date, for the entirety or almost
the entirety of the restraint period pending the return
date. In
those circumstances, the first respondent argues that the relief that
the applicant seeks is final in nature or final
in effect, even
though it is framed as interim relief.
[15]
I
agree that notwithstanding the format of a
rule
nisi
claimed by the applicant, the relief sought, and in the event that it
is granted, will be final in effect. The time that will elapse
between the launch of the application and the allocation of a hearing
date in the ordinary course may well take up the majority
or even the
whole of the period during which the purported restraint endures.
[3]
[16]
In
the light of the disputed facts on the papers before me, and my
finding that the relief sought is in fact final in effect, the
principles referred to in
Stellenbosch
Farmer’s Winery Ltd v Stellenvale Winery (Pty) Ltd
[4]
should apply. This is that a final interdict only be granted in
notice of motion proceedings if the facts as set out by the
respondent
together with the admitted facts of the applicant justify
such order.
[17]
The applicant demonstrates a clear right in
that the restraint of trade provision and the confidentiality
undertaking are terms
of the applicant’s employment contract
with the first respondent. Moreover, the first respondent is in
breach thereof by
virtue of his employment with the second
respondent, a direct competitor of the applicant. Thus, the first
respondent’s employment
with the second respondent amounts to a
breach of the restraint provision.
[18]
The confidentiality undertaking upon which
the applicant relies provides that the first respondent will not be
entitled to use any
confidential information of the applicant for the
first respondent’s personal benefit or that of any third party.
Furthermore,
that the applicant’s confidential information
shall not be disclosed to any third party without the prior written
consent
of the applicant.
[19]
The first respondent agreed that the
applicant’s confidential information includes
inter
alia
; “client information,
business affairs, marketing strategies, technical methods and
processes, computer programmes and operating
methods of the
applicant”.
[20]
The restraint provision provides
inter
alia
that absent the written consent of
the applicant, the first respondent would for a period of 12 months
following the termination
of his employment with the applicant, and
within a radius of 300 km of the applicant’s place of
employment where the
first respondent was based, not compete directly
or indirectly with the applicant’s business, such business to
include any
of the services or products provided by the applicant in
the marketplace for the 12-month period immediately prior to the
termination
of the applicant’s employment.
[21]
The applicant alleges that the 300 km
radius relates to the area in which the applicant operates and
provides services to its
clients and customers.
[22]
The applicant conducts business
specialising in the provision of point of sale (“POS”)
solutions to retailers and restaurants.
In addition to the sale
thereof, the applicant provides on-going support training in respect
of the point of sale systems to the
applicant’s clients,
technical support and customised system integrations to ensure the
client’s optimal performance
in respect of the point of sale
systems.
[23]
The applicant employed the first respondent
as a Technical Support Technician. According to the applicant, the
first respondent’s
primary responsibilities included
troubleshooting hardware and software issues, performing
installations and upgrades for clients
and providing remote and
on-site technical assistance to clients. The first respondent also
trained the applicant’s client’s
staff members in the use
of the POS systems.
[24]
According to the applicant, the first
respondent acquired knowledge of the applicant’s pricing
systems although the first
respondent denies this.
[25]
The first respondent does not deny that the
second respondent competes directly with the applicant.
[26]
The
basic principle in respect of trade secrets is that an employer who
has armed itself with a restraint in order to “safeguard
itself against the unpoliceable danger of the respondent
communicating its trade secrets to, or utilising its customer
connection
on behalf of a rival concern after entering that rival
concern’s employ …”,
[5]
the applicant does not have to run the risk of waiting for the
respondent to do so.
[27]
Where
the employee who is subject to a restraint has taken up employment
with a competitor in violation of the restraint, all that
the
employer must do is show that there is secret information to which
the respondent had access, and which, in theory, the respondent
could
transmit to the new employer should he desire to do so.”
[6]
[28]
Given
that the first respondent does not dispute his employment with the
second respondent, a competitor of the applicant, the latter
does not
need to show actual harm, only that the first respondent is
“potentially able to exploit the applicant’s trade
secrets or business connections in the first respondent’s new
employment”.
[7]
[29]
The applicant relies in respect of its
protectable interest upon the applicant’s “offering”
of proprietary technologies
and specialised customer services. The
applicant furnishes little detail of its alleged protectable
interests. The applicant relies
upon it having developed proprietary
software code, pricing structures, client data and detailed business
processes and that the
first respondent had access to the applicant’s
sensitive trade secrets including clients’ tailored pricing
regimes,
the latter being denied by the first respondent.
[30]
The first respondent admits that he carried
out technical support and maintenance of various of the applicant’s
clients. The
first respondent’s support of these clients
enabled the first respondent to become acquainted with the technical
requirements
of each system and the businesses themselves, including
client specific data. Thus, the applicant contends that the first
respondent
had access to valuable information that, if used, will
damage the competitive position of the applicant.
[31]
The first respondent admits that he
installed the applicant’s systems in the applicant’s
clients’ businesses.
As a result, it follows that the first
respondent was exposed to the internal workings of the applicant’s
systems and those
of its customers and that he gained knowledge of
the specific needs of the applicant’s clients
[32]
The applicant’s “protocols”
are not publicly available and are known only to a few of the
applicant’s employees,
one of which is the first respondent.
The applicant refers to “software architecture, system
configurations, troubleshooting
protocols and the specific
customisation and integration of POS systems for each client, as well
as the needs of each client in
respect of POS systems”. Such
information is confidential and is protected by the law.
[33]
I accept the first respondent’s
averments that he did not have knowledge of “pricing
structures, customer contracts
and sales trends” of the
applicant. It is irrelevant.
[34]
The first respondent admits that he
serviced a number of the applicant’s major clients, trained the
applicant’s clients’
staff on the applicant’s
systems and rendered technical support in respect of the systems.
Thus, it is probable that the
first respondent developed personal
relationships with the applicant’s customers’ staff,
given that the first respondent
trained the customers’ staff
and would have interacted with the staff subsequently in respect of
issues experienced by the
staff with the applicant’s systems.
[35]
Accordingly, the first respondent certainly
developed relationships with various of the applicant’s
customers.
[36]
The first respondent, having been directly
involved with the clients, gained knowledge of their technical
requirements of each system
and together with access to client
specific data. The first respondent’s knowledge of each of the
applicant’s clients’
system setups and customisations,
are of a confidential nature and part of the applicant’s trade
secrets. Such information
is not available in the public domain and
the first respondent became aware of such information pursuant to his
employment at the
applicant.
[37]
Despite the first respondent’s
attempts to downplay the applicant’s protectable information to
which he had access by
virtue of his employment with the applicant,
the fact that he became acquainted with the technical requirements of
each system
of the applicant and the business systems of the clients’
themselves, including client specific data and the clients’
staff members, is sufficient to qualify as confidential information
worthy of protection.
[38]
Whether or not the first respondent was
exposed to the applicant’s clients’ tailored pricing
regimes is irrelevant.
It is evident from that aforementioned that
the first respondent had access to the applicant’s trade
secrets and confidential
information and that the applicant stands to
suffer damage if the first respondent utilises such information.
[39]
The applicant does not have to wait for the
first respondent to use the protectable information. It is sufficient
that the first
respondent is potentially able to do so. The first
respondent is so able to do in his employment with the second
respondent as
a “Junior Installation and Support Engineer.”
[40]
Similarly to his employment with the
applicant, the first respondent is employed to conduct installations
of the second respondent’s
systems in clients of the second
respondent. The first respondent is also required to attend to the
technical support of the second
respondent’s customers and
clients, a position similar if not identical to the technical support
employment position held
by the first respondent with the applicant.
[41]
Accordingly,
the applicant has demonstrated that the first respondent has breached
the restraint of trade. The sole remaining issue
is whether the
restraint is unreasonable.
[8]
[42]
The first respondent alleges that enforcing
the restraint of trade would render him unemployable in the single
industry in which
he has ever held employment. The first respondent
has no post-school qualifications.
[43]
The first respondent is 27 years of age and
holds a Grade 12 school qualification, obtained in 2017, this being
his highest academic
achievement. He resides in Johannesburg and has
done so his entire life. He was unemployed until January 2019 when he
secured employment
with In Touch Point Of Sale based in Randburg. His
employment with the applicant was his second employment.
[44]
The first respondent, whilst employed by
the applicant, was permanently based at the applicant’s
Johannesburg branch, situated
in Edenvale. The first respondent was
one of four or five technical support staff located at the
Johannesburg office.
[45]
Insofar as the first respondent alleges
that he was not on an equal bargaining footing with the applicant
when he commenced employment
with the applicant, this was not the
first respondent’s first employment but his second in a similar
industry. The first
respondent was approximately 24 years of age when
he commenced employment with the applicant. The first respondent had
employment
prior to commencing with the first respondent and thus,
was not compelled to accept the applicant’s employment if the
terms
of the agreement were not amenable to him. The first respondent
must be required to abide by the agreement concluded by him with
the
applicant.
[46]
That being said, the first respondent
should not be rendered unemployable. The first respondent does not
allege reasons why the
restraint of trade, its scope, duration and
extent is unreasonable.
[47]
The 300km radius from Johannesburg extends
to cities and towns outside of the province of Gauteng, reaching to
cities and towns
in Mpumalanga, Limpopo, KwaZulu-Natal and the Free
State. The applicant does not substantiate the need for a restraint
of trade
that extends outside of the province of Gauteng, more
especially given that the applicant has branches in Gqeberha, Durban
and
Bloemfontein. In the circumstances, the restraint of trade of
300km is unreasonable and stands to be reduced in its extent to the
province of Gauteng. The first respondent does not
demonstrate that the
restraint, for a period of one year, is unreasonable.
[48]
Subject to the reduction in the
geographical extent of the restraint to 100km radius from
Johannesburg, the applicant is entitled
to the relief sought by it
and I intend to grant such an order.
[49]
As regards the costs, there is no reason
why the costs should not follow the order on the merits.
[50]
In the circumstances, I grant the following
order:
1.
The first respondent is ordered to comply
with the following obligations undertaken by him in terms of the
employment agreement
concluded between the applicant and the first
respondent:
1.1.
In perpetuity, not to use, disclose or
divulge the applicant’s confidential information (including but
not limited to the
client information, business affairs, marketing
strategies, technical methods and processes, computer programs and
other operating
methods of the applicant), whether directly or
indirectly, for the first respondent’s own benefit or for the
benefit of any
person other than the first respondent (including but
not limited to the second respondent);
1.2.
To treat and safeguard the confidential
information as confidential and to take all such steps as may be
reasonably necessary to
prevent confidential information from falling
into the hands of unauthorised third parties;
2.
The first respondent is interdicted and
restrained for a period of 12 months subsequent to the termination of
his employment agreement,
within 100 kilometres of Johannesburg,
either for his own account or as representative or agent for
any third party (such
as the second respondent), partner,
shareholder, director, employee, consultant, officer or member or in
any other capacity whatsoever:
2.1.
From encouraging and enticing or inciting
or persuading or inducing any employee of the applicant to terminate
his/her employment
with the applicant; and/or
2.2.
From contacting or approaching or
furnishing any information or advice (whether oral or written) to any
prescribed client/customer,
employee, consultant, contractor,
financier, agent, representative or otherwise), directly or
indirectly, for the purpose of or
with the intention of persuading,
soliciting or inducing such clients/customers to terminate their
mandate with the applicant or
to offer such client/customers the
rendering of any prescribed services.
3.
For a period of 12 months subsequent to the
termination of the employment contact and within the 100 kilometre
area radius from
Johannesburg interdicting and restraining the first
respondent:
3.1.
Not to be engaged in any business in
competition with the applicant’s business, be it direct or
indirect, whether as an employee,
shareholder, partner, member,
director or in any other capacity of such business; and
3.2.
The aforesaid restraint applying to any
business that offers the same or similar services as those supplied
by the applicant.
4.
Ordering and directing the second
respondent:
4.1.
To cease and desist from aiding and
abetting or assisting the first respondent to breach the contractual
obligations envisaged in
the employment contract concluded between
the parties including but not limited to those enumerated immediately
above; and
4.2.
To immediately desist from utilising any of
the applicant’s confidential information, if any such is in the
possession of
the second respondent.
5.
Directing the first respondent to pay the
costs of the application on the scale as between attorney and client.
CRUTCHFIELD J
JUDGE OF THE HIGH
COURT
JOHANNESBURG
For
the Applicant: Adv I L Posthumus instructed by O’Reilly Law INC
For
the First Respondent: Adv H B Marais SC instructed by Kevin Cross and
Affiliates
Date
of the hearing: 21 May 2025.
Date
of the judgment: 17 June 2025.
[1]
Epic
Outdoor Media Sales (Pty) Ltd v Paterson
2024
JDR 1132 (GJ) (“Epic”).
[2]
Valuenet
Solutions Inc t/a Dinkum USA & Another v Etel Communications
Solutions (Pty) Ltd
[2005] ZAGPHC 10
;
2005
(3) SA 494
(W) para [17].
[3]
BHT
Water Treatment (Pty) Ltd v Leslie & Another
1993
(1) SA 47
(W) at [55];
Cape
Tex Engineering Works (Pty) Ltd v SAB Lines (Pty) Ltd
1968
(2) SA 528 (C).
[4]
Stellenbosch
Farmer’s Winery Ltd v Stellenvale Winery (Pty) Ltd
1957
(4) SA 234
(C) at 235.
[5]
Experian
South Africa (Pty) Ltd v Haynes & Another
2013
(1) SA 135 (GSJ).
[6]
Id.
[7]
Fidelity
Guards Holdings ibid.
[8]
Basson
ibid
at
767.
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