Case Law[2023] ZAGPJHC 870South Africa
A&D Spitz (Pty) Ltd v Blessed Miracle Wholesalers and Retailers CC and Others (22/23988) [2023] ZAGPJHC 870 (4 August 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
4 August 2023
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## A&D Spitz (Pty) Ltd v Blessed Miracle Wholesalers and Retailers CC and Others (22/23988) [2023] ZAGPJHC 870 (4 August 2023)
A&D Spitz (Pty) Ltd v Blessed Miracle Wholesalers and Retailers CC and Others (22/23988) [2023] ZAGPJHC 870 (4 August 2023)
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sino date 4 August 2023
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
CASE
NO:
22/23988
NOT REPORTABLE
NOT OF INTEREST TO OTHER
JUDGES
NOT REVISED
04.08.23
In
the matter between:
A&D
SPITZ (PTY) LTD
Applicant
and
BLESSED
MIRACLE WHOLESALERS AND RETAILERS CC
First
Respondent
SAMUEL
MEKONEN HAMZA
Second
Respondent
MINISTER
OF POLICE
Third
Respondent
JUDGMENT
MAHON AJ:
This judgment is
handed down electronically by circulating it to the parties’
representatives by email and by uploading on
CaseLines.
[1] The applicant
is the proprietor in South Africa of various trade marks
incorporating the mark “Carvela”.
These trade marks
have been registered in terms of the provisions of the
Trade Marks
Act 194 of 1993
.
[2] The applicant
applies these trade marks to handcrafted Italian footwear which
constitutes protected goods as contemplated
in section 1 of the
Counterfeit Goods Act 37 of 1997 (“the
Counterfeit Goods
Act&rdquo
;). The first respondent, a retailer or wholesaler of
formal men’s apparel, including men’s shoes, is alleged
to have been trading in counterfeit Carvela products at the direction
of its sole member, the second respondent.
[3] During the
course of the proceedings, agreement was ultimately reached between
the parties in regard to all aspects of
a draft order which had been
prepared, save insofar as the question of costs was concerned.
[4] For this
reason, it is not necessary for me to deal with the merits of the
matter, save to the limited extent set out
below. The reasons for the
order which I will grant relate only to the question of costs.
[5] In prayer 2 of
the notice of motion, the applicant sought an order in terms of
section 10(1)(d)
of the
Counterfeit Goods Act directing
the
respondents to provide certain information “
... which is
within their knowledge or under their control ...
”.
[6] This relief was
resisted by the first and second respondents on the basis that they
were not involved in the sale of the
counterfeit Carvela products
and, as such, were unable to provide the information which was sought
which related primarily to the
suppliers of the products.
[7] At the
commencement of the hearing, I questioned whether I could reject the
first and second respondents’ version
that the information
sought in prayer 2 of the notice of motion was not within their
knowledge. The applicant’s counsel,
Mr South, indicated
that the applicant would be satisfied with an order directing the
respondents to provide the information sought,
“
... insofar
as it is within their personal knowledge or under their control
”.
[8] The first and
second respondents’ attorney, Mr Mohapi, indicated that the
first and second respondents would be
prepared to consent to such
relief, in addition to the relief to which it had already consented.
[9] After standing
the matter down in order to afford the parties an opportunity to
agree to the terms of a draft order, the
Court was presented with a
draft order in regard to which agreement had been reached between the
parties in all respects, save
insofar as the prayer for costs was
concerned.
[10] The draft order
which had been prepared by the applicant which incorporated a prayer
that the respondents pay the costs of
the application, including the
cost of two counsel where so employed, was uploaded to CaseLines at
page 021 21.
[11] Mr Mohapi, for the
first and second respondents, confirmed that the first and second
respondents consented to the draft order
in all respects save insofar
as the prayer for costs was concerned.
[12] The first and second
respondents resisted the order for costs on two bases:
[12.1] Firstly, they
argued that a tender had been made to consent to an order which, in
effect, amounted to the same terms as the
order which had now been
agreed between the parties and that this tender had been made prior
to the delivery of the respondents’
answering affidavit.
For this reason, so it was contended, the applicant should be
entitled to its costs only on an unopposed
basis;
[12.2] Secondly, it was
contended that the matter did not warrant the employment of two
counsel.
[13] In regard to the
first ground, the first tender which was relied upon is that which is
contained at annexure “SH2”
to the answering affidavit.
It is dated 29 July 2022, prior to the delivery of the answering
affidavit and records the first and
second respondents’ consent
to the relief initially sought by the applicant in certain respects
and subject to certain proposed
variations.
[14] However, the
document does not include a tender to provide the information sought
by the applicant, to the extent that such
information may be within
the first or second respondents’ knowledge or control.
Rather, it records the first and second
respondents’ version
that they do not have any details of the information which is
sought.
[15] A further tender was
made on 18 August 2022 which, in substance, mirrored the tender which
had been made on 29 July 2022
but which included an additional
undertaking by the first and second respondents to endeavour to
ascertain from their cell phone
provider whether certain telephone
numbers or incoming private numbers could be traced and to request
the second respondent’s
brother’s cooperation to see if
his brother could trace the relevant telephone numbers.
[16] Whilst both of the
tenders demonstrate a willingness to cooperate, they do not amount to
a consent to an order directing disclosure
of such information which
is within their knowledge or under their control. Had a more
definitive undertaking been given
together with a consent to an
order, the further costs incurred in the matter would undoubtedly
have been avoided. I am therefore
satisfied that the applicant
is entitled to its costs on an opposed basis.
[17] As for the
contention that the matter did not warrant the cost of two counsel, I
am satisfied that the nature of the matter,
the complexity of the
issues and the importance of the matter to the applicant, warranted
the employment of two counsel.
[18] I accordingly grant
the following order:
1.
The first and second respondents (“the opposing
respondents”) are interdicted and restrained from, directly or
indirectly
as partner, representative, shareholder, director,
employee, consultant, adviser, financier or agent (or any other like
or similar
manner or capacity) of or associated with any corporate
entity or other association of persons, engaging in:
1.1.
the importation, manufacture, production, distribution or sale
of counterfeits of “the Carvela branded products”
(described
and defined in paragraphs 20 to 22, as well as annexure
FA7, of the founding affidavit of Vivien Crystal (“the founding
affidavit”));
1.2.
the use of a mark identical to “the Carvela trade marks”
(described and defined in paragraphs 18 to 19 of the founding
affidavit), or a mark so nearly resembling the Carvela trade marks as
to be likely to deceive or cause confusion, in relation to
goods in
“class 25” (described more fully in paragraphs 18.1 to
18.6, and annexures FA1 to FA6, of the founding affidavit);
1.3.
the use of a mark identical to the Carvela trade marks, or a
mark similar to the Carvela trade marks, in the course of trade in
relation to goods which are so similar to the goods in class 25, that
in such use there exists the likelihood of deception or confusion;
1.4.
the use of a mark identical to the Carvela trade marks, or a
mark similar to the Carvela trade marks, in the course of trade in
relation to any goods or services, where such use would be likely to
take unfair advantage of, or be detrimental to, the distinctive
character or repute of the Carvela trade marks.
2.
The opposing respondents are directed, in terms of section
10(1)(d) of the Counterfeit Goods Act no. 37 of 1997 (“the
Counterfeit Goods Act&rdquo
;), to provide the following information
to the applicant in so far as it is within their personal knowledge
or under their control:
2.1.
full and accurate details of all sources or suppliers from
which the counterfeit Carvela branded products emanate or were
purchased,
including:
2.1.1.
the name and registration number of the manufacturer and/or
source and/or supplier of the counterfeit Carvela branded products;
2.1.2. the names and
contact numbers (telephone numbers and email addresses) of the
employees, representatives, brokers or agents
of the manufacturer
and/or source and/or supplier of the counterfeit Carvela branded
products with whom the Respondents have dealt
with at any stage in
the course of dealing in the counterfeit CARVELA branded products;
2.1.3. any transaction
documentation of any kind relating to the purchase or procurement or
otherwise dealing in the counterfeit
Carvela branded products.
3. Should the opposing
respondents fail to disclose within 10 days of service of this order
the information detailed in paragraphs
2 to 2.1.3 above, the
applicant may apply to court, based on the contents of this
affidavit, supplemented to the extent it deems
necessary, for an
order declaring the opposing respondents to be in contempt of court
and for further relief in the form of a penalty
and/or imprisonment.
4. In terms of
section
10(1)(a)
of the
Counterfeit Goods Act:
4.1. The
opposing
respondents are directed to deliver-up at the premises of the
applicant or its legal representatives, Adams & Adams,
any
counterfeit CARVELA branded products which are currently in their
possession or under their control;
4.2. The applicant is
authorised to take into its possession the counterfeit Carvela
branded products seized by the SAPS on the
8th of June 2022 at the
opposing respondents’ business premises situated at no. 86
Delvers Street, Corner Jeppe Street, Johannesburg.
5. The opposing
respondents are ordered to pay the costs of this application, which
costs shall include the costs of two counsel
where so employed.
D MAHON
Acting Judge of the High
Court
Johannesburg
This judgment was
handed down electronically by circulation to the parties’ legal
representatives by email and by being uploaded
to CaseLines. The date
and time for hand down is deemed to be 30 May 2023.
APPEARANCES
:
For the Applicant:
Adv AG South SC
Adv CW Pretorius
Instructed by:
Adams & Adams
For the First and
Second Respondents:
Mr T Mohapi
Instructed by:
Hugh Raichlin Attorneys
Date of hearing: 4 August
2023
Date of judgment: 4
August 2023
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