Case Law[2023] ZAGPJHC 374South Africa
Evrigard (Pty) Ltd and Another v Select PPE (Pty) Ltd (44317/2021) [2023] ZAGPJHC 374; 2023 BIP 13 (GJ) (25 April 2023)
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Evrigard (Pty) Ltd and Another v Select PPE (Pty) Ltd (44317/2021) [2023] ZAGPJHC 374; 2023 BIP 13 (GJ) (25 April 2023)
Evrigard (Pty) Ltd and Another v Select PPE (Pty) Ltd (44317/2021) [2023] ZAGPJHC 374; 2023 BIP 13 (GJ) (25 April 2023)
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sino date 25 April 2023
IN THE HIGH COURT OF
SOUTH AFRICA
(GAUTENG DIVISION,
JOHANNESBURG)
Case No: 44317/2021
Date of hearing: 6
February 2023
Date judgment
delivered:
25 April 2023
NOT REPORTABLE
NOT OF INTEREST TO
OTHER JUDGES
REVISED
In
the matter between:
EVRIGARD
(PTY) LTD
FIRST
APPLICANT
RONDO
(PTY) LTD
SECOND
APPLICANT
AND
SELECT
PPE (PTY) LTD
RESPONDENT
Neutral
Citation:
Evrigard (Pty)Ltd and Rondo (Pty)Ltd v Select PPE
(Pty)Ltd
(Case No: 44317/2021) [2023] ZAGPJHC 374 (25 April 2023)
JUDGMENT
Strijdom
AJ
1.
The applicants instituted motion proceedings against the respondent
in terms of which declaratory and interdictory relief is
sought
against the respondent for (inter alia) alleged defamatory statements
and injurious falsehoods committed by the respondent.
2.
The
respondent’s conduct complained of giving rise to the alleged
defamatory and injurious falsehood statements made against
the
applicants are based on a letter of demand from the respondent’s
attorneys dated 10 June 2021 and as published to third
parties (viz
Builders Warehouse).
[1]
3.
In its
notice of motion, the applicants sought an order (inter alia)
directing the respondent to pay damages to the applicants for
defamation and injurious falsehoods.
[2]
At the commencement of this matter, I was informed by the applicants
that no order is sought for damages.
4.
The salient issues requiring determination by this Court are as
follows:
4.1 Whether the alleged
statements complained of are defamatory of the applicants?
4.2 Whether the
applicants have made out a case for interdictory and declaratory
relief based on a defamation and injurious falsehood
cause of action?
4.3 The merits of the
defences raised by the respondent, including but not without
limitation that it acted during the cause of
a privileged occasion?
4.4 Whether the Court in
the exercise if its discretion should not- suit the applicants on the
basis that they have not demonstrated
why a damages action does not
constitute appropriate alternative relief?
5.
The first
applicant is the manufacturer, and the second applicant the
distributor, of PPE products to the mining industry.
[3]
6.
The
applicants have been selling gloves under the brand STORM and FORCE
since at least 2016, to the knowledge of the respondent.
[4]
7.
The applicants contended that the respondent unlawfully interfered in
their business relationship with Sibanye Stillwater by,
inter alia: -
7.1 Replicating the
unique colours of the first applicant’s gloves;
7.2 Falsely representing
to Sibanye Stillwater that the first respondent’s dusk masks
were out of stock across South Africa
knowing this to be untrue.
7.3 Unlawfully
substituting the first respondent’s products with those of
competitors.
8.
This
resulted in the applicants instituting application proceedings
against the respondent under case no 21896/2021 (the “Substitution
Application”) and laying a complaint with the competition
commission.
[5]
9.
On 10 June
2021, and after the Substitute Application was served, the
respondent’s attorneys sent the contentious letter to
the
applicants attached as “FA 4” to the Founding
Affidavit
[6]
alleging that: -
9.1 The applicants were
marketing gloves under the product ranges of Tyson “Force”
and “Storm”;
9.2 These products were
“clearly intended to be passed off as our client’s
product ranges” as the respondent was
the registered holder of
certain trademarks;
9.3 The applicants’
products infringed on the respondent’s registered intellectual
property and constituted an attempt
to “pass off your goods as
our clients under the common law.”
9.4 The applicants were
contravening Section 34 (1) of the Trade Mark Act, 1993 and the sale
of the products was intended “to
create deception in public eye
that they are in fact purchasing our client’s products, such
deception which is also unlawful.”;
9.5 The applicants were
invited to deliver to the respondents all the infringing products
"for purpose of destruction.”
9.6 The respondent would
address Builders Warehouse on this issue, requiring them to remove
all infringing products from their shelves;
and
9.7 The respondent would
institute legal proceedings in terms of Section 34 (1) of the Trade
Marks Act if the goods were not delivered
to it by 15 June 2021.
10.
On 11
June 2021 and under cover of an e-mail
[7]
the respondent wrote to Builders Warehouse alleging the “the
offending goods are sold in your stores” and that “we
request you to immediately remove the offending goods from your
stores and return them to the supplier.”
11.
Builders
Warehouse approached the applicants on 6 July 2021 advising of the
respondent’s publication of the letter.
[8]
12.
The respondent contended that its actions were not unlawful because:
-
12.1
The
statements are not defamatory and “do not have the tendency,
nor are they calculated to undermine the status and good
name of the
applicants.
[9]
12.2
There is
“no competent cause of action disclosed for purpose of the
claim based on an injurious falsehood in that the applicants
have not
alleged that the respondent intended to injure them in their
reputations.
[10]
12.3 The respondent was
“vindicating its statutory and common law intellectual property
rights” and lacked the intention
to defame the applicants;
12.3.1 In this
regard, the respondent contended that it was “of the view that
its registered trade marks were being
violated and that the
applicants were guilty of passing off”.
12.4
If it is
found that the statements were defamatory, the respondent alleges
that such statements were published “during the
course of a
privileged occasion which had the effect of excluding any
wrongfulness.”
[11]
12.4.1
In this
regard, the respondent contended that it is entitled to “express
its views freely on the subject so as to jealously
guard and enforce
what it considers to be valuable intellectual property assets”
and that it had the “right to bring
these matters to the
attention of Builders Warehouse” who had a “reciprocal
right to receive the information contained
in the letter of
demand.”
[12]
12.5 The applicants have
not made out a case for interdictory relief.
Declaratory
Relief
13.
In this matter the applicants sought a declaratory that the
respondent has defamed the applicants.
14.
It was
stated in
Economic
Freedom Fighters and Others v Manuel (Media Monitoring Africa Trust
as amicus curiae)
[13]
that:
14.1 not all cases can be
dealt with by motion proceedings for declaratory orders and followed
by referrals to trial court for the
determination of quantum;
14.2 where an applicant
elects this course, it runs the risk of being told by a court that
the chosen method to prosecute the matter
is simply wrong; and
14.3 defamation
proceedings ought: to dealt with by action proceedings and, unless
there are exceptional circumstances, they should
not be dealt with
piecemeal through a combination of motion and action proceedings.
15.
In
Cadac
(Pty) Ltd v Weber Stephen Products Company and others
[14]
it was stated that:
“
a court may
conclude that the issues of liability and quantum are so interlinked
that it is unable to decide the one without the
other.”
16.
It is trite law that a party must claim all its relief, arising from
a single cause of action, in the same action.
17.
The elements of a defamation are i) the wrongful, and ii)
intentional, iii) publication of, iv) a defamatory statement, v)
concerning the plaintiff/applicant.
18.
The statement may have a primary or secondary meaning. The applicants
relied on the primary meaning of the statement and have
not alleged a
secondary meaning. The meaning of the statement is determined
objectively by the legal conduct of the reasonable
reader and is not
a matter on which evidence may be led.
19.
A defamatory statement includes a statement that can injure the
reputation of a person concerning his trade or business profession,
and extend to trading corporations.
20.
Once it is proven that a defamatory statement has been published, two
presumptions arise: -
20.1 Firstly, that the
publication was wrongful; and
20.2 Secondly, that the
defendant intended to act animus iniuriandi.
21.
It was submitted by the applicants that the statement is defamatory
per se, that the statements was made animus iniuriandi and
that the
respondent’s defence of qualified privilege is not a valid
defence.
22.
The applicants further contended that the statements were, in fact,
injurious falsehoods.
23.
For the purpose of declaratory relief, the applicants must prove
that:
23.1 The representation
was false;
23.2 The respondent knew
the representation was false; and
23.3 The respondent
intended to cause the applicant loss by the false representation
(animus iniuriandi).
24.
The factors necessary to determine quantum and those necessary for
the determination of whether the declaratory order ought
to be
granted are in my view inextricably linked. The Court considering the
quantum aspect of this matter (assuming the applicants
succeed) would
not be in a position to properly consider all the relevant factors
necessary for determining quantum.
25.
One of the factors to be considered in determining damages in a
defamation claim relates to the Trial Court’s perception
of the
defendant’s witnesses on matters concerning the entire claim.
Once a Court has considered all the evidence pertaining
to the merits
and quantum it then exercises a discretion on what appropriate remedy
ought to be. That discretion should not be
exercised piecemeal but
with regard to the totality of evidence before the Court including
the conduct of the parties which is
predominantly an issue that
arises at the merits stage of the proceedings.
26.
The approach adopted by the applicants to bring the proceedings on
motion and request a referral for oral evidence as regard
damages has
been endorsed in some types of claims. However, it is not an approach
that is automatically applicable in all types
of claims.
27.
It was submitted by the respondent that the issues in dispute have
not crystallized as they would in action proceedings, with
the result
that the contours of the applicants’ case in respect of the
various causes of action are not clearly defined.
I agree with this
submission.
28.
On a conspectus of the affidavits, I concluded that this court is not
in a position to properly consider the various aspects
raised in the
matter as a Court would in trial proceedings.
29.
In my view there is a procedural and substantive flaw in the process
chosen by the applicants and that this Court cannot entertain
the
application for declaratory relief.
The
Interdict
30.
The requirements for interdictory relief are trite. The applicants
must prove: -
30.1 A clear right;
30.2 An injury actually
committed or reasonably apprehended; and
30.3 The absence of any
other satisfactory remedy.
31.
Any person
(juristic or natural) has a clear right to protect its dignity and
reputation.
[15]
32.
As already demonstrated above, this Court cannot entertain the
declaratory and cannot make a finding that the statement published
by
the respondent to Builders Warehouse is defamatory. Consequently, the
Court cannot find that an injury has been committed to
the
applicants’ right to dignity and reputation.
33.
It is trite law that the interdict does not secure to afford
protection against past invasions of a right. Even if the statements
were defamatory, the applicants must establish a reasonable
apprehension of harm.
34.
The alleged apprehension of harm is based on the respondent having
been required to give undertakings and the respondent refusing
to
give such undertakings. The applicants contended that the respondent
will repeat the impugned statements.
35.
Before the issues was addressed with Builders Warehouse, the
respondent informed the applicants that it would approach Builders
Warehouse.
36.
There is no indication in the papers that the respondent wishes to
make those statements to any other party: In my view there
is no
reasonable apprehension to harm.
37.
The
respondent contended that an interdict is not the appropriate remedy
because an award of damages at a trial in due course “will
constitute adequate redress in vindicating the reputation of the
applicants…”
[16]
The applicants contended that damages are not a suitable alternative
remedy.
38.
The notice of motion indicates that the applicants seek damages to be
awarded in due course. There is no indication in the applicants’
affidavit why an award of damages would not vindicate the applicants’
rights.
39.
It was
stated in
Herbal
Zone
[17]
that:
“
An interdict to
prevent the publication of defamatory matter is directed at
preventing the party interdicted form making statements
in the
future. If granted it impinges upon that party’s
constitutionally protected right to freedom of speech. For that
reason, such an interdict is only infrequently granted, the party
claiming that they will be injured by such speech ordinarily being
left to their remedy of a claim for damages in due course. Nugent J A
said in this court
(Midi Television (Pty) Ltd t/a E-TV v Director
of Public Prosecution (Western Cape)
[2007] ZASCA 56
;
2007 (5) SA. 540
SCA at para
20)
”. Where it is alleged, for example, that a publication
is defamatory, but it is yet to be established that the defamation
is
usually capable of vindicating the right to reputation if it is later
found to have been infringed and an anticipatory ban on
publication
will seldom be necessary for that purpose.”
40.
I concluded that an interdict is not the appropriate remedy because
an award of damages at a trial in due course will constitute
adequate
redress in vindicating the reputation of the applicants.
41.
In the result the application is dismissed with costs.
STRIJDOM JJ
ACTING JUDGE OF THE
HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION
JOHANNESBURG
Appearances
For
the Applicants:
Adv
J.M. Hoffman
Instructed
by:
Kantor
Myers Paslovsky Attorneys
For
the Respondent:
Adv
C.C. Bester
Instructed
by:
Mc
Naught & Company Inc.
[1]
Case Lines; Annexure FA 4; 006-1 to 006-5
[2]
Case Lines; Notice of motion; 001-2 para 6.
[3]
Case Lines; FA, p 002-5.
[4]
Case Lines; FA, p 002-10.
[5]
Case Lines; FA 12, p 002-7
[6]
Case Lines; p 006-1
[7]
Case Lines; p 020-170
[8]
Case Lines; FA 5, p 007-1
[9]
Case Lines; AA 11.1, p 020-4. AA 15, p020-5. AA 24, p020-7
[10]
Case Lines; AA 27, p 020-8.
[11]
Case Lines; AA 11.4 p 020-4.
[12]
Case Limes; AA 36, p020-10 to AA 41, p 020-11.
[13]
2021 (3) SA 425 (SCA).
[14]
2011 (1) ALL SA 343 (SCA)
[15]
Manuel v Economic Freedom Fighters and others
2019 (5) SA 10
at para
21.
[16]
AA, Page 020-11.
[17]
[
2017] 2 ALL SA 347
(SCA)
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