Case Law[2024] ZAGPJHC 715South Africa
Genesis One Lighting (Pty) Ltd v Jamieson and Others (3212/2019) [2024] ZAGPJHC 715 (7 August 2024)
High Court of South Africa (Gauteng Division, Johannesburg)
7 August 2024
Headnotes
the appeal had lapsed. He later refused leave to appeal against his order. [11] On 15 September 2022 the applicant issued the contempt of court application (the application is dated 12 September 2022).
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Genesis One Lighting (Pty) Ltd v Jamieson and Others (3212/2019) [2024] ZAGPJHC 715 (7 August 2024)
Genesis One Lighting (Pty) Ltd v Jamieson and Others (3212/2019) [2024] ZAGPJHC 715 (7 August 2024)
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sino date 7 August 2024
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
CASE
NUMBER : 3212/2019
1.
Reportable NO
2.
Of Interest to Other Judges NO
3.
Revised
In
the matter between:
GENESIS
ONE LIGHTING (PTY) LTD
Applicant
and
JAMIESON,
BRADLEY LLOYD N.O.
1
st
Respondent
RODNEY
GERSON FITTINGHOFF N.O.
2
nd
Respondent
BRAD
ANTHONY KALISH N.O.
3
rd
Respondent
ROBERT
LARRY KALISH N.O.
4
th
Respondent
JASON
RIVKIND N.O.
5
th
Respondent
IRON
ICE (PTY) LTD
6
th
Respondent
STEAMLIGHT
FX (PTY) LTD
7
th
Respondent
JUDGMENT
VAN DER BERG AJ
[1]
On 18 March 2019 Justice Mahalelo granted an interim interdict
pending the finalisation of an action to be instituted
in an urgent
unlawful competition application brought by the applicant.
[2]
Arising from that order there are two applications. The
applicant has brought a contempt of court application, alleging
that
the respondents are in breach of the order. The respondents in
turn have launched a counter-application, seeking variation
of the
interim interdict by the deletion of certain paragraphs thereof.
Both the application and the counter-application
are opposed.
#
# THE INTERIM INTERDICT
ORDER AND SUBSEQUENT LITIGATION
THE INTERIM INTERDICT
ORDER AND SUBSEQUENT LITIGATION
[3]
On 30 January 2019 the applicant issued an urgent application out of
the above court broadly seeking the following relief:
[3.1] Interdicting
the respondents from unlawfully competing with the applicant;
[3.2] Interdicting
the respondents from utilising the applicant’s confidential
information;
[3.3] The return of
confidential information;
[3.4] Termination
of the first respondent’s employment;
[3.5] Providing
source documents and reports regarding the respondents’
unlawful import and retail activities.
[4]
The application was opposed.
[5]
On 18 March 2019 Justice Mahalelo granted the following order (“the
Court Order”):
“
1. The court
dispenses with the forms and service prescribed by the Rules of Court
and disposes of this matter as once of
urgency in terms of Rule
6(12).
2. Pending the
final determination of an action to be instituted in this court by
the applicant against the respondents for
relief substantially as set
out in the notice of motion, the respondents are interdicted and
restraint from:
(2.1)
using the applicant’s confidential information
relating to the applicant’s clients and/or suppliers as listed
in annexure
“A”, in any manner, whether directly or
indirectly for the purposes of soliciting the business of the
applicant its
clients and suppliers, competing with the business of
the applicant;
(2.2) contacting,
canvassing, dealing, soliciting or diverting, securing or attempting
so to do any existing client or supplier
of the applicant and as more
specifically listed in annexure “A”.
(2.3) any conduct
which will have the effect of damaging the client or business
relationships of the applicant;
(2.4) copying,
transmitting or transcribing, or rendering in usable form, any
existing client and supplier data relating to
the applicant and as
more specifically listed in annexure “A”;
(2.5) making
available to any other party or entity, whether in digital form or
otherwise, any client data or contact information
relating to any
existing client and supplier of the applicant and as more
specifically listed in annexure “A”;
3. The first
respondent is interdicted and directed forthwith to deliver up to the
applicant all documents whether in digital
form or otherwise in his
possession or control relating to the applicant’s business,
clients and/or suppliers, representing
and/or containing any
documents, reports and/or specifications relating to the know-how
and/or unique selling points (“USP”)
of the applicant’s
products, and/or from further disseminating and/or making available
to any person including specifically
the second, third, fourth,
fifth, sixth and seventh respondents same.
4. The second,
third, fourth, fifth, sixth and seventh respondents are interdicted
and directed forthwith to deliver up to
the applicant all documents
whether in digital form or otherwise in their possession or control
relating to the applicant’s
business, clients and/or suppliers,
representing and/or containing any documents, reports and/or
specifications relating to the
know-how and/or unique selling points
(“USP”) of the applicant’s products, and/or from
further disseminating
and/or making available to them by the first
respondent whether directly and/or indirectly.
5. The first,
second, third, fourth, fifth, sixth and seventh respondents are
interdicted from using any of the applicant’s
confidential
information and/or trade secrets and/or pricing structure including
client and/or supplier lists, USP and know-how
to unlawfully compete
with the applicant whether as a springboard or otherwise to advance
the business of the second and/or third
respondents or any interest
either directly or indirectly of the first, second, fourth, fifth,
sixth and seventh respondents in
the second and third respondents.
6. The second and
third respondents
[the seventh and
sixth respondents respectively in this application]
are
interdicted from employing the first respondent in any capacity
whatsoever whether directly or indirectly in the carrying on
of the
business of the second and third respondents.
7. The second and
third respondents are to deliver to the applicant:
7.1 forthwith all
documents relating to the ordering, quotation and invoicing by them
or received from the applicant’s
supplier of lighting products
ZHEJIANG SHENGHUI LIGHTING CO, LTD t/a Sengled;
7.2 a report to the
applicant upon receipt of the lighting product ordered by them from
Sengled reflecting the quantity of
product received together with
product specifications and description supported by all documents
exchanged by them with Sengled
and in particular bill of lading
and/or way bills, or the like;
7.3 an accurate
report each month from 31 March 2019 and the end of each succeeding
month accounting for all sales, duly supported
by purchase orders,
invoices and delivery notes, for the lighting product ordered and
received from Sengled.
8. The applicants
are to institute the action referred to in para 2 hereof within 30
days from the date of this order, failing
which the interdicts in
para 2 to 7 hereof will automatically lapse.
9. The costs of
this application are reserved for decision by the court trying the
said action.”
[6]
Annexure A to the order listed clients and suppliers of the
applicant. One of the suppliers listed is Sengled which
is also
referred to in paragraph 7 of the Court Order.
[7]
The action envisaged in paragraph 8 of the Court Order was duly and
timeously instituted and is pending.
[8]
The sixth and seventh respondents are companies and were cited as
third second and second respondents respectively in
the urgent
application (“
the company respondents
”). The first
to fifth respondents (“
the individual respondents
”)
are joined (according to the notice of motion) “in their
capacities” as directors of the sixth respondent,
and the
second respondent also as a director of the seventh respondent.
[9]
It appears from the judgment of Mahalelo J that the first respondent
was employed by the applicant and concluded a confidentiality
agreement. Thereafter he joined the company respondents and
divulged confidential information to them,
inter alia
in
respect of the applicant’s supplier, Sengled.
[10]
On 31 May 2019 Mahalelo J granted the respondents leave to appeal
against his judgment. However, on 26 July 2021 Gilbert
AJ in an
application brought by the applicant held that the appeal had lapsed.
He later refused leave to appeal against his order.
[11]
On 15 September 2022 the applicant issued the contempt of court
application (the application is dated 12 September 2022).
[12] On
6 December 2022 the contempt application was postponed on application
by the respondents. On 17 February 2023 the respondents
filed the
counter-application referred to above together with their answering
affidavit in the contempt application. Thereafter
further
affidavits were exchanged.
#
# NOTICE OF MOTION
NOTICE OF MOTION
[13]
The applicant’s notice of motion in its contempt of court
application reads as follows in relevant part:
“
1. The
first, second third, fourth and fifth respondents are declared to be
in breach of the court order granted by the Honourable
Justice
Mahalelo on 18 March 2019 in the Gauteng Local Division of the High
Court, Johannesburg, case number: 3212/2019. (‘the
order’).
2. The first,
second third, fourth and fifth respondents in their
nomino
officio
capacities as directors of the sixth respondent and
the second respondent as a director of the sixth and seventh
respondent are
declared to be in contempt of the order and are hereby
afforded (7) seven days from date of this order to deliver to the
applicant
or applicant’s attorney and in full compliance with
the order the following:
2.1 all documents
relating to the ordering, quotation and invoicing by them or received
from the applicant’s supplier
of lighting products ZHEJIANG
SHENGHUI LIGHTING CO, LTD t/a Sengled (‘Sengled’);
2.2 a report to the
applicant upon receipt of the lighting product ordered by them from
Sengled reflecting the quantity of
product received together with
product specifications and description supported by all documents
exchanged by them with Sengled
and in particular all bills of lading
and/or waybills, or the like;
2.3 an accurate
report each month from 31 March 2019 and the end of each succeeding
month accounting for all sales, duly supported
by purchase orders,
invoicing and delivering notes, for the lighting product ordered and
received from Sengled.
2.4 Written
confirmation from the Companies and Intellectual Property Commission
that Form CoR39 (previous CM29) and Annexure
A, (being the resolution
by the directors or extract of minutes) noting the resignation as
director of the sixth respondent as
director of the second and third
respondents, has been received.
3. In the event
that the first, second, third, fourth and fifth respondents fail to
comply with (2) two above the applicant
is entitled to:
3.1 Approach the
above Honourable Court on an urgent basis, on the same papers,
duly supplemented (if necessary) for
an order holding the first,
second third, fourth and fifth respondents in contempt of the order.
3.2 Seek an order
in terms of which the first, second, third, fourth and fifth
respondents be set to goal for a period of
six (6) months,
alternatively
; to a period of incarceration, to be determined
in the discretion of by the above Honourable Court,
further
alternatively
; a penalty be imposed as deemed appropriate by the
above Honourable Court.”
(Sic)
[14]
The remainder of the prayers contains directives to the sheriff and
the SAPS for the incarceration of the individual
respondents if
required. The applicant also seeks cost against these respondents on
a scale as between attorney and client.
[15]
Paragraph 2 of the notice of motion in fact contains two separate
prayers: the first is for a declaration that the individual
respondents are in contempt of the Court Order, and the second is for
an order that the individual respondents must deliver the
documents
specified in paragraphs 2.1 to 2.4 of the notice of motion to
the applicant. Should they fail to do so, the applicant
seeks (in
prayer 3) leave to approach the court to hold these the respondents
in contempt and for an order of incarceration or
a penalty. It is
clear from the applicant’s heads of argument and oral argument
at the hearing that the contempt order sought
in paragraph 2 relates
to the individual respondents’ failure to have furnished the
documents listed in paragraphs 2.1 to
2.4.
[16]
Prayer 1 is more problematic. It merely seeks a declaratory order
that the individual respondents are in “breach”
of the
court order. It is framed in the present tense. It makes no mention
of “contempt”. It also does not set out
the respects in
which the Court Order was allegedly breached. During oral argument it
was submitted on behalf of the applicant
that:
[16.1] the court
should find that the breach referred to in prayer 1 includes the
respondents’ breach in trading with
clients and customers
listed in Annexure “A” to the Court Order;
[16.2] an order
should be made that the individual respondents are in contempt (as
opposed to merely be in breach) of the
Court Order by trading with
these clients and suppliers;
[16.3] an order
should be made substituting the words “to be in breach”
in the prayer 1 with the words “have
breached” (i.e. in
the past tense).
[16.4] these orders
can be made under “further and/or alternative relief” in
the notice of motion.
[17]
Such orders
cannot be granted. A court is not permitted to grant relief not
sought in the notice of motion. Relief may
sometimes be
granted under the head of “
further
and/or alternative relief
”
but only if “…
the
party against whom such relief is to be granted has been fully
apprised that the relief in this particular form is being sought
and
has had the fullest opportunity of dealing with the claim for relief
been pressed under the head of ‘further and/or alternative
relief’.”
[1]
[17.1] The
respondents admitted in the answering affidavit that they traded with
the suppliers and clients listed on annexure
“A” but
averred that it was not prohibited by the Court Order.
[17.2] The Court
Order itself may be ambiguous. Paragraph 2.2 of the Court Order can
be construed as interdicting the respondents
from trading with the
clients or suppliers listed on annexure “A”.
However, paragraph 7 of the Court Order requires
documents and
reports pertaining to trading with Sengled (which is listed on
annexure “A”) to be furnished, which suggests
that the
respondents were entitled to continue trading with the listed
entities.
[17.3] None of the
parties addressed argument on this possible contradiction or
ambiguity in the Court Order in their heads
of argument. In my
view it was not done as they did not think it was an issue on the
papers.
[17.4] Accordingly,
the
respondents did not have “the fullest opportunity
of dealing with the claim for relief
” which is now sought.
They would be even more prejudiced if a contempt finding against them
in respect of trading with the
listed entities is now to be
considered.
[18]
It is also not clear how prayer 1 takes the matter any further, as no
consequential relief is sought pursuant to the
declaratory order in
prayer 1. This issue will in any event become moot in future in
light of my finding on the counter-application.
[19]
Accordingly, the only issue in the application in convention is
whether the applicant has made out a case for relief
in terms of
paragraph 2 of the notice of motion.
CONTEMPT
OF COURT APPLICATION
[20]
Extensive correspondence was exchanged between the parties’
respective attorneys during the period 25 March 2019
to 8 June 2022.
Between 18 August 2021 and 4 May 2022, Chad Jacobs Attorneys (“
CJA”
),
the respondents’ erstwhile attorneys, delivered certain
documents to the applicant. In the correspondence the applicant’s
attorneys Otto Krause Inc (“
OKI
”) repeatedly
stated that the documents supplied on behalf of the respondents did
not comply with the Court Order.
[21]
The deponent to the founding affidavit, Michelle Anne Bothma
(“
Bothma
”) is a chartered accountant and the
financial director of the applicant. She made a detailed analysis of
all the documents
which have been received from CJA. It is
clear from this affidavit that a substantial number of documents
required in terms
of the Court Order had not been furnished to the
applicant at the time when Bothma deposed to the founding affidavit.
This is not
in dispute.
[22]
On 24 November 2022 (i.e. after the postponement of the contempt
application) Hadar Incorporated (“
Hadar
), the
respondents’ new attorneys, delivered a discovery affidavit in
the pending action discovering 4 140 documents.
[23]
On 19 January 2023 OKI made payment for the copying of the
discovered documents, and the documents were duly provided
to the
applicant. The respondents filed their answering affidavit in the
contempt application on 31 January 2023. Additional documents
were
provided by the respondents to the applicant on 23 February 2023.
[24]
The applicant’s replying affidavit was deposed to by Bothma on
9 March 2023. In this affidavit she analysed the
further documents
which Hadar had furnished since she had deposed to the founding
affidavit. She concluded that documents relating
to ten transactions
and reports relating to lighting product received from Sengled were
still outstanding. The respondents’
response to this affidavit
is dealt with below.
## Contempt of Court: legal
principles
Contempt of Court: legal
principles
[25]
In
Fakie
[2]
Cameron JA confirmed that in a contempt of court application an
applicant must prove the requisites of contempt, namely: the order;
service or notice or knowledge of the order; non-compliance with the
order; and wilfulness and
mala
fides
.
[3]
[26]
Cameron JA held that once the applicant has proved the order, service
or notice, and non-compliance, “…
the respondent bears
an
evidential burden
in relation to wilfulness
and mala fides.
” (Own emphasis, as is the case throughout
the judgment.)
[27]
The learned
judge also held:
[4]
“
The test for when
disobedience of a civil order constitutes contempt has come to be
stated as whether the breach was committed ‘deliberately
and
mala fide’. A deliberate disregard is not enough, since the
non-complier may genuinely, albeit mistakenly, believe him
or herself
entitled to act in the way claimed to constitute the contempt. In
such a case good faith avoids the infraction. Even
a refusal to
comply that is objectively unreasonable may be bona fide (though
unreasonableness could evidence lack of good faith).”
(Footnotes omitted.)
[28]
This principle is demonstrated by the facts and litigation in
Ndabeni
.
[28.1]
A
municipality and its municipal manager breached a court order. An
application to hold them in contempt of court was dismissed
in the
High Court. On appeal to the SCA, the majority reversed the decision
and declared that they were in contempt of court.
[5]
[28.2]
Dambuza
JA on behalf of the minority (relying on
Fakie)
came
to a different conclusion
[6]
and said:
“
The
non-compliance in this case was not driven by a deliberate and
intentional violation of the court's dignity, repute or authority.”
[28.3]
On
further appeal t
he
Constitutional Court held:
[7]
“
[21]
The
secondary issue is whether the Municipal Parties are
in contempt of the Mjali J order and whether they should be required
to purge such contempt. This issue can be determined without
much
ado…Griffiths J's finding, that the Municipal Parties'
non-compliance was
neither wilful nor mala fide
, dispensed
with this factual requirement to prove contempt. In addition to the
Municipal Parties' claim that they were acting on legal advice
,
Griffiths J and two judges of the Supreme Court of Appeal agreed with
them. Hence the Municipal Parties' version
was not so far-fetched
or untenable that it could be rejected on the papers
. As the
Supreme Court of Appeal could not refute Griffiths J's factual
finding, it could not declare the Municipal Parties to be
in
contempt.”
[29]
Regardless
of where the onus lies in civil contempt cases, the
Plascon-Evans
rule
still applies as these are motion proceedings (see
NDPP
v Zuma
[8]
and in
restraint cases,
Reddy
v Siemens
.
[9]
)
The
dictum
in the Constitutional Court in
Ndabeni
(supra)
is
consistent with this principle.
Contempt
application: discussion
[30]
The respondents in a subsequent affidavit filed in response to
Bothma’s replying affidavit state that:
[30.1] they did not
know what the alleged outstanding documents constituting the “
10
transactions”
are but tendered to provide any documents
that the applicants complained have not been provided.
[30.2] they have
not compiled any reports other than those they had provided but in
any event the applicant had compiled the
reports itself, rendering
the relief in this regard moot.
[30.3] but for the
documentation relating to the alleged “
10 transactions”
(which are not identified or identifiable, and the respondents say
they have no knowledge of), every document contemplated by the
court
order has been provided.
[31]
No objection was taken to this affidavit. The applicant has not filed
a response to this affidavit. In fact, it is clear
from Bothma’s
replying affidavit that the10 transactions have not been identified,
and that the applicant itself compiled
the alleged outstanding
reports. The respondents’ evidence must therefore be accepted.
[32]
It is therefore found that any contempt or breach that may have
existed was purged by the individual respondents.
[33]
Written
confirmation that the first respondent had resigned as director of
the company respondents was provided to the applicant
and there is
thus no remaining breach of the Court Order in that respect.
[10]
[34]
The applicant has also not made out a case for contempt based on the
respondents’ historic breaches of the agreement
by not
furnishing the documentation required in terms of the Court Order
before 22 November 2022.
[35]
The respondents aver that they were informed by their erstwhile
attorney that they had already complied with the Court
Order.
They say that they verily believed that they have complied with the
Court Order in providing the documents which CJA
forwarded to OKI.
[36]
In light of the
Plascon-Evans
rule, this version must be
accepted. It also appears from
Ndabeni (supra)
that
relying on legal advice can constitute a defence in contempt of court
applications.
[37]
The applicant contends that the
mala fides
of the respondents
is
inter alia
shown by the extensive correspondence and
demands for documentation, and the unnecessary delay in complying
with the Court Order.
This submission is not without merit, but in my
view it is not possible to reject the respondents’ version on
this basis
alone. The fact of the matter is that the documents were
made available as soon as there was a substitution of attorneys.
[38]
The applicant also wants the court to draw an inference of
mala
fides
from the fact that the applicant appealed the Court Order
and then allowed the appeal to lapse. The appeal lapsed because the
respondents
did not follow the rules of court. It clearly was not
deliberate.
[39]
The respondents lodged an unsuccessful application with the
Competition Commission
inter alia
asking that the Court Order
be suspended. The applicant avers that Competition Commission
application was a stratagem to delay
the Court dealing with the
contempt application. I do not see how the Competition Commission
application could delay this application,
or how it can have any
bearing on the respondents’
mens rea
in breaching the
Court Order. (The Competition Commission ruling has no other
relevance to this application.)
[40]
There is a
more compelling reason why a contempt order for historic breaches
should not be made in this case. In this leg
of the application
the applicant merely seeks an order compelling the respondents to
deliver certain documentation, failing which,
that the individual
respondents be committed to imprisonment or that a penalty be
imposed. The applicant thus seeks a “coercive
order” as
opposed to a “punitive order”. A coercive order gives the
respondent the opportunity to avoid imprisonment
by complying with
the original order and desisting from the offensive conduct.
[11]
In that the respondents have no further documents to deliver the
purpose of any coercive order falls away.
[41]
For reasons set out below, the applicant’s conduct before 22
November 2022 does remain relevant to the issue of
costs.
# COUNTER-APPLICATION FOR
VARIATION OF INTERIM INTERDICT
COUNTER-APPLICATION FOR
VARIATION OF INTERIM INTERDICT
## Variation of interim
order: legal principles
Variation of interim
order: legal principles
[42]
At common
law any interlocutory order made any time before final judgment in
the suit can be varied or set aside by the judge who
made it or by
any other judge sitting in the same court and exercising the same
jurisdiction.
[12]
A
temporary interdict may be varied or discharged where altered
circumstances since it was ordered makes it no longer necessary.
[13]
[43]
In
Lagoon
Beach
[14]
the SCA referred to
Knox
D'Arcy
[15]
and
held:
“
Moreover,
as has been pointed out inter alia by this court
in Knox
D'Arcy
,
whilst the refusal of an interim interdict may be final in that it
cannot be reversed on the same facts, it may be open to an
unsuccessful respondent against whom it is passed to approach the
court for its amelioration or to have it set aside 'even if the
only
new circumstance is the practical rule experience of its
operation'. Certainly, in the present case, should the
Irish
proceedings be unduly delayed or should there arise some other
material change in circumstances likely to have a bearing
on its
continued enforcement, the appellant can apply to have the interim
interdict either varied or even set aside.”
## Duration of unlawful
competition interdict: legal principles
Duration of unlawful
competition interdict: legal principles
[44]
In the case of unlawful competition, an applicant is entitled to an
interdict protecting its confidential information
in circumstances
where the respondent is using the confidential information as a
“
springboard”
. Springboarding entails not starting
at the beginning in developing a technique, process, piece of
equipment or product but using
as the starting point the fruits of
someone else’s labour.
[45]
An
interdict granted to prevent springboarding may, however, be limited
by the duration of the advantage obtained, or the time saved,
by
reason of having had access to the confidential information.
[16]
[46]
Stegmann J held:
“
A
temporary interdict (and also a final interdict) which aims to
deprive the respondents of that unfair and unlawful advantage,
must
be appropriately limited in time.
Its object
is to provide fair protection to the rights of the applicants for the
period for which the unfair advantage may reasonable
be expected to
continue. The object is not to punish the respondents nor to prevent
them from competing unlawfully with the applicants.”
[17]
[47]
Customer or supplier relationships, and customer or supplier lists,
constitute the type of confidential information that
an ex-employee
can “
carry away in his head”
when he/she leaves an
employer and the period for which the “unfair advantage may
reasonable be expected to continue”
would by its nature be
limited.
[48]
Similarly,
any confidentiality in and to a pricing structure or marketing
strategy is of a limited nature and duration, and any
interdictory
relief to protect such pricing structure or strategy must be limited
in nature.
[18]
[49]
Ultimately,
there must come a time when the confidential information in question
is no longer secret and an interdict is not warranted.
[19]
Variation
application: discussion
[50]
The respondents state the following in support of the
counter-application:
[50.1] Sengled is
one of the largest manufacturers of LED lighting products in the
world, and any person can purchase Sengled
products online, and the
respondents cannot exert any influence or control over Sengled;
[50.2] The first
respondent is no longer employed by the respondents, and the
respondents cannot exert any control over the
applicant’s
alleged customers;
[50.3] Four years
have passed (as at the date of the answering affidavit) and many
events have occurred which would necessitate
a change in the pricing
structure of the products;
[50.4] Marketing
plans and test results have also become obsolete in the past four
years because the market has changed and
so have any and all
marketing plans;
[50.5] Due to the
period that passed since the order was granted, any confidentiality
and information in their possession
has long since disappeared;
[50.6] The
respondents have developed their own pricing structures and know-how.
[51]
The applicant has not in its answering affidavit to the
counter-application meaningfully disputed any of these
contentions.
[52]
The applicant in response states that the respondents are attempting
to revisit the arguments advanced during the urgent
application. This
is clearly not the case – the respondents base their
counter-application on changed circumstances since
the Court Order.
[53]
The applicant further – in response to the respondents’
above averments – repeats that the respondents
are in breach of
the Court Order. This does not constitute a defence to the
counter-application.
[54]
The Court Order was made more than five years ago. In my view the
time lapse since the Court Order (as illustrated by
the reported
cases referred to above) is in itself grounds for a variation of the
Court Order. I have not been referred to any
case where an interim
interdict of this nature has been granted for a period of five years.
Coupled with respondents’ evidence
referred to above which is
for all intents and purposes undisputed, I am satisfied that the
respondents have made out a case for
a variation of the Court Order.
#
# COSTS AND CONCLUSION
COSTS AND CONCLUSION
[55]
The contempt of court application therefore stands to be dismissed
and the counter-application is to be granted.
[56]
In the Court Order Justice Mahalelo reserved costs for the trial
court. The counter-application is a variation of that
order and
remains an interim order. In my view the costs of the
counter-application should also be reserved for the trial court.
Ultimately the trial court will have to make a final decision as to
the issues raised in the urgent application and in the
counter-application.
[57]
The contempt application stands on a different footing, as this court
is in a better position than the trial court would
be to deal with
the costs of the contempt application.
[58]
The respondents’ breach of the Court Order extended over a long
period of time. Although the respondents may not
have had the
required
mens rea
as a result of the advice their attorney
gave them, a party cannot hide behind its attorneys’ advice in
order to excuse non-compliance
with court orders or rules of court.
The applicant was within its rights to have launched the contempt
application and would
ordinarily have been entitled to its costs up
the date the respondents purged their breach or contempt on 24
November 2022. The
respondents would in the ordinary course have been
entitled to costs of the contempt application incurred after 24
November 2024.
[59]
In my view it would fair under the circumstances if each party should
bear its own costs in respect of the application
in convention.
#
# ORDER
ORDER
[60]
The following order is made:
[60.1] The application in
convention dated 12 September 2022 is dismissed with no order as to
costs.
[60.2] The order made by
Justice Mahalelo on 18 March 2019 under case number 3212/2019 is
varied with effect of the date of this
order by the deletion of
paragraphs 2, 5, 6 and 7.3 thereof.
[60.3] The costs of the
counter-application are reserved.
VAN
DER BERG AJ
APPEARANCES
For
the applicant
:
Adv
CB Garvey
Instructed
by:
Otto
Krause Inc
First
respondent
: No appearance
For
the second to seventh respondents
:
Adv
I Miltz SC with
Adv
J M Hoffman
Instructed
by:
Hadar
Inc
Date
of hearing:
31 July 2024
Date
of judgment:
7 August 2024
[1]
Port
Nolloth Municipality v Xhalisa and Others; Luwalala and Others v
Port Nolloth Municipality
1991 (3) SA 98
(C) at 112 D – F. This principle has been
followed subsequently:
Combustion
Technology (Pty) Ltd v Technoburn (Pty) Ltd
2003
(1) SA 265
(C) at paragraph [11], p 268
;
Mgoqi v City of Cape Town and Another; City of Cape town v Mgoqi and
Another
2006
(4) SA 355
(C) at paragraphs [10] – [13], p 362 – 363;
Hirschowitz
v Hirschowitz
1965
(3) SA 407
(W) at 409
[2]
Fakie
NO v CCII Systems (Pty) Ltd
2006
(4) SA 326 (SCA)
[3]
Fakie,
paragraph
[42](c), p 344 H – J
[4]
Para [9]
[5]
Ndabeni
v Municipal Manager: OR Tambo District Municipality
[2021]
ZASCA 82021
; JDR 0066 (SCA)
[6]
Para’s 36-39
[7]
Municipal
Manager, or Tambo Municipality and Another v Ndabeni
2023
(4) SA 421 (CC)
[8]
National
Director of Public Prosecutions v Zuma
2009
(2) SA 227
(SCA) at para’s 26-27 (“
In
motion proceedings the question of onus does not arise
.”)
[9]
Reddy
v Siemens Telecommunications (Pty) Ltd
2007
(2) SA 486
(SCA), para 14.
[10]
In prayer 2.4 of the notice of motion reference is made to the
incorrect respondents.
[11]
Secretary
State Capture Commission v Zuma
2021
(5) SA 327
(CC), para 47
[12]
Erasmus,
Superior
Court Practice
,
Vol 1, E142-15;
South
Cape Corporation (Pty) Ltd v Engineering Management Services (Pty)
Ltd
1977 (3) SA 534
(8) and 550H
[13]
Meyer
v Meyer
1948 (1) SA 484 (T)
[14]
Lagoon
Beach Hotel (Pty) Ltd v Lehane NO and Others
2016
(3) SA 143
(SCA), para 10
[15]
Knox
D'Arcy Ltd and Others v Jamieson and Others
[1996] ZASCA 58
;
1996
(4) SA 348
(A) at 360A
[16]
Waste
Products Utilisation (Pty) Ltd v Wilkes and Another
2003 (2) SA 515
(W) at 583F
[17]
Knox
D'Arcy Ltd and Others v Jamieson and Others
1992
(3) SA 520
(W)
at
527F-528I
[18]
See
Traka
Africa (Pty) Ltd v Amaya Industries
2016 JDR 0310 (GJ) at para’s 70-73, and para’s 79-83
[19]
Multi
Tube systems (Pty) Ltd v Ponting and Others
1984
(3) SA 182
(D) at 189H. See also
Van
Castricum v Theunissen and Another
1993 (2) SA 726
(T) at 736D
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