Case Law[2023] ZAGPJHC 917South Africa
Corex (Pty) Ltd v Shenzhen Poweroak Newener Co Ltd and Others (2023/071667) [2023] ZAGPJHC 917 (16 August 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
16 August 2023
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Corex (Pty) Ltd v Shenzhen Poweroak Newener Co Ltd and Others (2023/071667) [2023] ZAGPJHC 917 (16 August 2023)
Corex (Pty) Ltd v Shenzhen Poweroak Newener Co Ltd and Others (2023/071667) [2023] ZAGPJHC 917 (16 August 2023)
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sino date 16 August 2023
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
Case No: 2023/071667
In the matter between :
COREX
(PTY) LTD
(Registration
No. 2003/012178/07)
Applicant
And
SHENZHEN
POWEROAK NEWENER CO LTD
(UNIFIED
CODES OF SOCIAL CREDIT NO. 440301107472840)
First
Respondent
BLUETTI
ENERGY SOUTH AFRICA (PTY) LTD
(REGISTRATION NO.
2022/626647/07)
Second
Respondent
TAKEALOT
ONLINE (RF) (PTY) LTD
(REGISTRATION
NO. 2010/020248/07)
Third
Respondent
JUDGMENT
ORDER
(1)
The forms and service provided for in the
rules of this court are dispensed with and the matter is enrolled for
urgent hearing in
terms of rule 6(12)(a).
(2)
The application is struck from the roll.
(3)
Corex is directed to pay Poweroak’s
costs on the party and party scale.
DODSON AJ:
# Introduction
Introduction
[1]
This is an urgent application for
interdictory and mandatory relief against the first respondent. The
applicant is a company domiciled
in South Africa. The first
respondent is a company domiciled in Huizhou City, Guangdong Province
in the Peoples’ Republic
of China. I will refer to them
as “Corex” and “Poweroak” respectively.
[2]
Corex and Poweroak are parties to an
agreement in terms of which the former is appointed as the latter’s
sole distributor
of Poweroak’s Bluetti renewable energy
products on the Takealot platform for a period of 36 months. Corex
asserts that Poweroak
is acting in breach of the agreement. Poweroak
disputes this and alleges that Corex is in breach.
[3]
The interdict seeks to prohibit the sale by
Poweroak of Bluetti products to competitors of Corex who are (or
ought reasonably to
be) known by it to be selling those products on
the Takealot platform. It also seeks to interdict the sale by
Poweroak itself of
Bluetti products on Takealot. A mandatory
interdict is sought requiring Poweroak to disclose to buyers of its
products, the existence
of its exclusive distributorship agreement
with Corex.
[4]
The second respondent is a company
domiciled in South Africa. It was joined on the basis that it is a
subsidiary of Poweroak. However
it emerged in the course of
proceedings that it is the subsidiary of a different company, based
in Hong Kong.
[5]
The third respondent, Takealot, was joined
on the basis of the interest it might have in the relief sought.
However, no relief is
sought against the second and third
respondents, save in the event of their opposing the relief sought.
In that event, costs
are sought against them. The second and
third respondents did not oppose the application.
[6]
In the affidavits, the application is
pleaded as an application for interim relief. However, in the
notice of motion there
is no reference to any pending action or
intended commencement of one. The relief is framed as final
relief. The matter
therefore stands to be decided on the basis
that final relief is sought, although nothing ultimately turns on
this.
[7]
I am satisfied that the application is
urgent.
# Factual background
Factual background
[8]
Corex and Poweroak began discussions about
a possible distribution arrangement during September 2022. These
initial discussions
appear to have taken place between a Mr Jacky
Cheng, an agent of Corex based in China, and Mr Tiger Han, sales
director of Poweroak.
Mr Han describes himself as “currently
based in Sydney Australia [and residing] in China”. No
elaboration
is provided.
[9]
These discussions resulted in the first
order being placed by Corex on Poweroak on or about 28 September
2022. The email communications
surrounding this order took place
between Mr Tiger Han and Mr Andrew Mustard, a branch manager of
Corex, in South Africa, with
other parties copied in.
[10]
The business relationship developed.
The parties decided to formalise their relationship through a
distribution agreement.
A written sole distributorship agreement was
accordingly concluded on 9 February 2023. It was signed on
behalf of Corex by
its general manager, Mr Michael Hann. It was
signed on behalf of Poweroak by its vice-president, Mr Huang Wei.
This agreement provided
for an exclusive distributorship in South
Africa from 9 February 2023 to 1 June 2023. Thereafter, from 1 June
2023 to 9 February
2024, the position would change so that Poweroak
appointed Corex as “its exclusive distributor on TAKEALOT along
with the
Company’s [i.e. first respondent’s] Online Shop,
with plans to start operation June 2023”. There was also
provision for negotiating a possible extension of the agreement.
[11]
Implementation of the agreement ran into
some difficulty when an employee of Poweroak approached competitors
of Corex with a view
to supplying products to them. When this was
discovered and raised by Corex, Mr Tiger Han acknowledged the
conduct, but indicated
that the employee had acted without
authorisation. An apology was given, along with an assurance of
Poweroak’s commitment
to the contract.
[12]
Following this, during May 2023, Corex and
Poweroak concluded a second distributorship agreement which replaced
the initial agreement.
Under it, Corex was no longer the sole
distributor of Bluetti products in South Africa. Instead, Poweroak
appointed Corex “as
its exclusive distributor on TAKEALOT.COM.”
It was to run for a period of 36 months.
[13]
Significant terms of the agreement for
present purposes included the following:
“
1.
The Company [i.e. Poweroak] authorizes the Distributor [i.e. Corex]
as its exclusive Distributor on TAKEALOT.COM.
2. The Company agrees to
close its official online store on TAKEALOT.COM.
3. …
6. The Company shall not
authorise any other companies to sell BLUETTI products on
TAKEALOT.COM . Should there [be] any companies
trying to list BLUETTI
products on TAKEALOT.COM, the Distributor shall endeavour to stop
that from happening working with TAKEALOT.
The company shall provide
a formal EXCLUSIVE CHANNEL AUTHORISATION letter regarding this, but
it is not the Company’s responsibility
to stop other companies
from selling on TAKEALOT.
7. During the agreement
period the Distributor shall not engage/present any other competitor
brand ...”
[14]
The second agreement was signed by Mr
Michael Hann on behalf of Corex in his capacity as managing director
on 11 May 2023. It was
signed by Mr Ziangzhu Yin on behalf of
Poweroak in his capacity as managing director. No date appears in the
space provided for
it below his signature. The agreement contains no
choice of law provision, no dispute resolution provision and no
submission to
the jurisdiction of the courts of any country.
[15]
Implementation of the new distributorship
agreement has not been successful. Corex asserts that sales of the
Bluetti products began
to dwindle. They attribute this to a number of
its competitors selling the Bluetti products on Takealot and other
online platforms
at lower prices. Corex also complains that the
prices charged by Poweroak for its Bluetti products are excessive.
Corex asserts
that Poweroak’s supply of the products to those
competitors, knowing that they are competing with Corex on Takealot,
is in
breach of the second agreement.
[16]
This breach, says Corex, resulted in its
sales of Bluetti products coming to a standstill. It has
therefore suspended placing
further orders on Poweroak. Attempts to
resolve the matter with Poweroak have been to no avail.
[17]
The stance of Poweroak is that the second
agreement is restricted to a sole distributorship
on
the Takealot platform
. It is entitled
to sell to other distributors. To the extent that some of these may
place their offerings of Bluetti products on
Takealot, clause 6 of
the second agreement provides for this problem to be dealt with by
Corex, not Poweroak. It alleges that Corex
is not pricing the
products at competitive levels.
[18]
A letter of demand addressed by Corex’s
attorneys to Poweroak did not resolve matters. It has therefore
launched the
present urgent application.
[19]
Poweroak opposes the application on the
grounds, firstly, that this court lacks jurisdiction to grant the
relief sought and, secondly,
that Poweroak is in any event not in
breach of the second agreement.
# Jurisdiction
Jurisdiction
[20]
The
Constitutional Court
[1]
has approved the definition of the term “jurisdiction”
given by Watermeyer CJ in
Graaf-Reinet
Municipality
[2]
as
follows:
“
Jurisdiction
means the power or competence of a Court to hear and determine an
issue between parties.”
[21]
Pollak
The South African Law of Jurisdiction
[3]
refers
to the following more comprehensive definition in
Wright
:
[4]
“
[A]
lawful power to decide something in a case, or to adjudicate upon a
case, and to give effect to the judgment, that is, to have
the power
to compel the person condemned to make satisfaction.”
[22]
Voet’s definition is also helpful in
the present context:
“
The
public power of deciding cases, both civil and criminal, and putting
the decisions into execution.”
[5]
[23]
The consequence of wrongly assuming
jurisdiction, Voet explains as follows:
“
Obviously,
if it is clear that a person is subject neither in regard of person
nor of property, then one who exercises jurisdiction
beyond his area
is disobeyed with impunity.”
[6]
[24]
The
onus of proving that a court has jurisdiction rests on the plaintiff
or applicant as
dominus
litis
.
[7]
[25]
Corex in seeking to satisfy the onus
asserts that this court has jurisdiction over Poweroak,
notwithstanding its domicile, on the
basis that Poweroak has “been
engaged in commercial activity within South Africa” and has
cemented its commercial relationship
with Corex through a contract
which provides for the latter, as a South African entity, to
distribute its products within South
Africa. It states further that
“Poweroak has developed a significant trade footprint within
the South African region”.
[26]
Poweroak disputes jurisdiction on the
grounds that it is domiciled in China; it has no registered address
or principal place of
business in South Africa; everything done by it
in fulfilment of the second agreement is executed from China; and the
relief sought
against Poweroak, if granted, cannot effectively be
enforced in China. In its answering affidavit Poweroak says the
following:
“
64.
I admit that Poweroak has engaged in commercial activity within South
Africa, including contractually with Corex, to distribute
its
products within South Africa, but I deny that this founds the
requisite jurisdiction of the above court for the relief sought.
Poweroak trades internationally pursuant to the terms of the United
Nations Convention on Contracts for the International Sale
of Goods,
with which it complies, and China and South Africa are both parties
to this Convention. Poweroak’s distributor
agreement with Corex
is essentially still a sales contract. The delivery method of free on
board Shenzhen is used. ...
65
Every aspect of Poweroak’s trading and selling in South Africa
is actioned from and in China. I submit with respect
that this cannot
be interdicted.”
[8]
[27]
Jurisdiction in respect of interdictory
relief against a peregrine respondent has always been dealt with
differently from jurisdiction
in respect of claims sounding in money.
Our courts will in appropriate circumstances grant an interdict
against a
peregrinus
.
What are those circumstances?
[28]
In
Kibe
[9]
the
Orange Free State provincial division of the Supreme Court was
concerned with a dispute in which the applicant and the respondent
were both
peregrini
domiciled
in Lesotho. The relief sought, however, pertained to the freezing of
a bank account opened by the respondent at the Zastron
[10]
branch of a South African bank. De Wet AJ held that:
“
Our
Courts have held that, where the respondent is a
peregrinus
,
the Court has jurisdiction if, in the case of a mandatory interdict,
the act is to be carried out within such area, or, in the
case of a
prohibitory interdict, if the act against which an interdict is
claimed is about to be done in such area.
[11]
[29]
On this basis, the court was willing to
grant the interdict sought.
[30]
In
South
Atlantic Islands
[12]
the
applicant sought to interdict the respondent from setting sail from
the port of Cape Town to conduct fishing operations in the
territorial waters of Tristan de Cunha in the Atlantic Ocean, in
respect of which the applicant held exclusive fishing rights.
The
court refused to grant the interdict saying –
“
Where
the relief asked for is such that it will not be enforceable, the
judgment becomes illusory and the court should not undermine
its
authority by giving such a judgment. This no doubt is why it has been
repeatedly stated that the principle of effectiveness
is the basis of
jurisdiction. ...
Dicey
stresses the point that it is power to give an
effective judgment and not merely power over the defendant which is
the test of jurisdiction.
In other words the fact that the respondent
in this case may be temporarily resident within the jurisdiction of
this court is of
no consequence – the question is whether this
court can enforce an order against him if and when he starts fishing
in the
waters of Tristan de Cunha. Seen in that light it seems to me
that there can be little doubt that this court will be powerless to
enforce its judgment if Buchan chooses to ignore the interdict.”
[31]
In
Hay
Management
[13]
the
court was concerned with interdictory relief sought pertaining to two
claims by a South African
incola
against
an English
peregrinus
.
The first claim was based on a contract concluded between the
parties. The second claim was based on delicts allegedly committed
by
the defendant. The judgment is not relevant insofar as it concerns
the first claim. However, in respect of the second claim,
the court
held as follows:
“
Nothing
is said in the draft particulars of claim to establish that the court
has any jurisdiction to grant an interdict to restrain
the peregrine
defendant from committing acts outside South Africa. The addresses of
the email [by which the delict was said to
have been committed] ...
are all in foreign countries. It was sent from England. All the
delicts complained of were committed outside
the country. A South
African court has no control over the defendant, nor over the
cessation of the acts in question and cannot
entertain an application
for an interdict against it.”
[32]
The
judgment of the Supreme Court of Appeal in
Foize
Africa
[14]
was
relied on by both Corex and Poweroak. That matter concerned an
interim interdict sought against nine respondents, two of whom
were
incolae
and
the remainder of whom were
peregrini
.
The dispute concerned an exclusive right to sell, market and
distribute certain products pursuant to an agreement concluded
between
the appellant and two of the
peregrini
respondents.
A dispute arose when the appellant was informed by certain of the
peregrini
respondents
that the first and third respondents no longer considered themselves
bound by the agreement, that the intellectual property
and other
rights forming the subject matter of the agreement in fact did not
vest in the first respondent and that the two South
African
companies, the
incolae
,
were to be appointed to market the product in South Africa. The
interim interdict sought to hold the
peregrini
respondents
that were parties to the contract to their bargain, to prevent the
remaining
peregrini
respondents
from unlawfully interfering with the contractual obligations of the
contracting
peregrini
respondents
and prohibiting the
incolae
respondents
from concluding any agreements in conflict with the appellant’s
rights under its contract.
[33]
The South African companies did not oppose
the application and an interim interdict was duly granted against
them. The
peregrini
respondents did not file answering affidavits but
raised a point of law based on the appellant’s papers, i.e.
that the agreement
included a governing law clause providing for the
application of Dutch law; an irrevocable consent by both parties to
the jurisdiction
of the courts of Holland; and a dispute resolution
clause requiring arbitration under the rules of the International
Chamber of
Commerce.
[34]
The Supreme Court of Appeal overturned the
decision of the High Court to decline jurisdiction, and substituted
its own decision
on the basis that it enjoyed jurisdiction. Insofar
as the
peregrini
respondents
who were parties to the agreement are concerned, the court held that,
notwithstanding the clauses referred to, it had
a discretion whether
or not to enforce them. It chose not to do so and granted the
interim relief sought against them. More
important for present
purposes is the category of defendants who did not have the benefit
of these clauses. In regard to
this category, the court held as
follows:
“
[15]
The first [contention] was that, as the respondents are
peregrini
who have no presence in this country, it would be
futile to grant an interdict against them. The basis of this argument
was that,
as the respondents are in Holland, it would not be possible
to ensure that they complied with an interdict granted by a court in
this country, as contempt of court proceedings could not be brought
against them. This is a somewhat surprising argument as,
historically,
the courts of this country have as a matter of course
granted interdictory relief against
peregrini
and, presumably for this reason, the argument was
somewhat tentatively advanced. Such diffidence was well founded. The
issue is
really one of effectiveness, and while I accept that a court
of this country should not grant an interdict against a
peregrinus
where the act sought to be interdicted would take
place outside its area of jurisdiction, this is not such a case. This
is a matter
involving a contract concluded in his country, which is
to be performed in this country, which the respondents threaten to
breach
in this country, and which the appellant, an
incola
,
seeks to enforce in this country. In these circumstances a court of
this country will be able to enforce an interdict if granted,
even if
contempt proceedings are not available (about which I express no
opinion).”
[35]
Pollak
does
not treat
Foize
as
stating the law on the grant of an interdict against a
peregrinus
any
differently from how it was stated in
Kibe
.
[15]
He summarises the legal position
[16]
in precisely the same words as the court in
Kibe
that
I have quoted above.
[36]
After referring to
Hay
Management
,
Pollak
then elaborates as follows:
“
If
... the respondent is a
peregrinus
…
of
the Republic as a whole, and the act which is the subject of the
interdict is to be performed or prohibited in a foreign country,
the
court has no control over the respondent nor over the execution or
cessation of the act in question and manifestly it cannot
entertain
an application for an interdict against such respondent.”
[17]
# Application to the facts
Application to the facts
[37]
Applying these authorities to the facts of
this matter, the first issue is where the contract was concluded. The
agreement itself
gives no express indication of this. The fact that a
signature date was typed below the signature of Corex’s
representative,
but not below that of Poweroak’s
representative, with the provision being left open for insertion of a
date in manuscript,
suggests that the parties were not together at
the time of signature of the contract.
[38]
Apart from the assertion by Corex that the
contract was concluded in South Africa, no further information is
provided. This bare
assertion is met with an equally bare denial on
the part of Poweroak. Given that Corex bears the onus to establish
jurisdiction
one would, in the face of this, have expected the
necessary detail to be provided by Corex in the replying affidavit.
However,
the bare assertion is simply repeated in reply. In the
circumstances, Corex has failed to establish that the contract was
concluded
in South Africa.
[39]
Nevertheless, this does not appear to me to
be the primary consideration. The next question to be considered is
where the contract
was to be performed. It is so that Corex’s
obligations are almost exclusively to be performed in South Africa.
However, the
position is different for Poweroak. Although not
expressly provided for in the agreement, Poweroak is tacitly obliged
to supply
Bluetti products to Corex for the purpose of carrying out
its sole distributorship through Takealot. For the reasons
given
above, we must accept Poweroak’s assertion that it
manufactures the Bluetti products in China and delivers them to Corex
“free on board Shenzhen” in accordance with the United
Nations Convention on Contracts for the International Sale of
Goods.
[40]
“
Free on board” or FOB is
defined as follows –
“
This
is the basis of an export contract in which the seller pays for
sending the goods to the port of shipment and loading them
on to the
ship or aircraft. The seller also pays for the insurance up to
this point. Thereafter the transport and insurance
charges have
to be paid by the buyer.”
[18]
[41]
The meaning of “free on board”
can also be derived from article 67(1) of the United Nations
Convention on Contracts
for the International Sale of Goods. It
provides:
“
If
the contract of sale involves carriage of the goods and the seller is
not bound to hand them over at a particular place, the
risk passes to
the buyer when the goods are handed over to the first carrier for
transmission to the buyer in accordance with the
contract of sale.
If
the seller is bound to hand the goods over to a carrier at a
particular place, the risk does not pass to the buyer until the
goods
are handed over to the carrier at that place
.”
(my emphasis)
[42]
Here
we are concerned with shipment “free on board Shenzhen.”
The reference to Shenzhen must be a reference to
the Port of
Shenzhen.
[19]
The latter part of article 67(1) applies. From this it is
apparent that risk in the goods transfers to Corex upon their
delivery by Poweroak to the carrier in the Port of Shenzhen.
Accordingly, all components of the contractual obligations of
Poweroak
to manufacture and deliver Bluetti products to Corex are
carried out in China outside of the territory of South Africa.
[43]
Clause 1 of the second agreement provides
that “the [first respondent] authorises the [applicant] as its
exclusive distributor
on Takealot.com.” Clearly that affords
Corex rights that it exercises and imposes obligations that it
performs in South Africa.
To that extent the contract is
carried out here in South Africa. But Poweroak gives the
exclusive authorisation to distribute
to a local South African
company precisely because Poweroak is offshore.
[44]
Clause 2 of the second agreement obliges
Poweroak to “close its official online store on Takealot.com”.
That appears
on the face of it to be an obligation that Poweroak must
perform in South Africa. But, in the absence of evidence to the
contrary, and having regard to the nature of the Takealot platform,
Poweroak would probably be able to comply with this obligation
electronically from China.
[45]
Clause 6 requires that Poweroak “shall
not authorise any other companies to sell Bluetti products on
Takealot.com”.
That is a negative obligation. It requires
Poweroak to refrain from actions or conduct. The nature of such
a forbearance
is that it rests on Poweroak primarily where it is
based i.e. in China.
[46]
On
Corex’s interpretation of the agreement,
[20]
this clause goes further and casts an obligation on Poweroak not to
supply Bluetti products to any competitor whom it knows, or
ought to
know, intends to distribute Bluetti products on Takealot. Poweroak
avers (and Corex does not seriously dispute) that its
supply to other
distributors internationally is on the same terms as those described
above in respect of Corex. On that basis,
the forbearance
imposed on Poweroak by this obligation is one that it must exercise
in China by
not
delivering Bluetti products “free on board Shenzhen” to
such distributors. That requires, in the main, a forbearance
to be
exercised in China.
[47]
Clauses 8 and 9 impose obligations on
Poweroak in relation to pricing. In the absence of evidence to the
contrary, that is probably
something that would be determined and
applied in China prior to the shipping of the products.
[48]
In terms of clause 11, Poweroak “shall
set up a local service centre and provide after-sales service,
warranty, repairing
as per the Company’s warranty policy”.
That is an obligation Poweroak must perform in South Africa.
[49]
From the foregoing analysis, it is apparent
that the contract is performed in both China and South Africa.
Corex’s performance
is almost exclusively in South Africa.
Poweroak’s performance is predominantly in China.
[50]
Having regard to the authorities on
jurisdiction, the most important consideration, however, is the
relief sought by Corex. In prayer
2 of the notice of motion, Corex
seeks an order –
“
Interdicting
and restraining the First Respondent from either directly or
indirectly selling, supplying, consigning or disposing
of in any way
any Bluetti products to any third party or entity who it knows, or
ought reasonably to know, intends to sell, list,
distribute or market
the products on Takealot.com within the Republic of South Africa.”
[51]
From
the above analysis of the shipping arrangements, we know that
“selling, supplying, consigning or disposing” of
Bluetti
products by Poweroak takes place exclusively in China. On the
authorities referred to earlier, a prohibitory interdict
will only be
granted “if the act against which an interdict is claimed is
about to be done in [South Africa].”
[21]
That is not the case. Accordingly this court has no
jurisdiction to grant the relief sought in prayer 2.
[52]
In prayer 3, Corex seeks an order that –
“
The
First Respondent clearly, unambiguously, and conspicuously discloses
to all current or prospective third party buyers, the existence
and
particulars of the exclusivity agreement with the Applicant,
including the resultant prohibition against selling, listing,
distributing or marketing Bluetti products on Takealot.com within the
Republic of South Africa.”
[53]
Having regard to the correspondence
attached to the founding affidavit, compliance with an order in those
terms would in all probability
take the form of written electronic
communications sent by Poweroak from its representatives in China
(or, possibly, Australia
in the case of Mr Tiger Han) to current and
prospective third party buyers in South Africa.
[54]
On
the authority of
Kibe
,
[22]
“where the applicant is a
peregrinus
,
the Court has jurisdiction if, in the case of a mandatory interdict,
the act is to be carried out [in South Africa]”. Here
the
acts are to be carried out in China. Again, prayer 3 seeks
relief which this court does not have the jurisdiction to
grant.
[55]
Prayer 4 of the notice of motion seeks an
order that has the effect of –
“
interdicting
and restraining Poweroak from either directly or indirectly trading
on Takealot.com.”
[56]
Given that Takealot.com is an electronic
platform, and although no technical information was provided in this
regard, it seems to
me that it would probably be technologically
possible (and more likely) for Poweroak to trade directly on
Takealot.com through
electronic means from China. To the extent
that it would have to supply goods that it traded on Takealot, it
would be on
the terms referred to above, which contemplate Poweroak
complying with its shipping obligations in China. Indirect trading
would
presumably contemplate doing so through the agency of another
party. Again, on the available evidence, this seems entirely possible
without a physical presence in South Africa. On this basis, the act
against which an interdict is claimed is about to be done in
China,
not South Africa. This court therefore lacks jurisdiction also
in respect of prayer 4 of the notice of motion.
[57]
In any event, in relation to this aspect no
adequate case has been made out by Corex for its assertion that
Poweroak is trading
directly or indirectly on Takealot.com. No
reference to such conduct was made in the letter of demand from
Corex’s attorneys
to Poweroak on 21 June 2023. On the
contrary, Corex’s complaint expressed there was that Poweroak
“
opted rather disingenuously to empower
the competition and take a back seat”
.
[58]
In its founding affidavit, Corex averred
that –
“
Insofar
as our competitors are concerned, I have included ... screenshots
evidencing marketing of the Bluetti products on Takealot
by the first
and second respondents, Pangolin, Elite Shopper, Banquo Power,
MyCybercare, Blushing and the third respondent itself.”
[59]
When regard is had to the relevant
annexure, however, there are no screenshots evidencing marketing of
the Bluetti products on Takealot
by Poweroak.
[60]
Poweroak deals in its answering affidavit
with this complaint as follows:
“
Takealot
was not happy with Poweroak’s application as Takealot was not
prepared to be purchasing from Corex while Poweroak
sold Bluetti
products on our online shop via or on Takealot. Corex in fact sells
to
Takealot as opposed to selling with an online shop
on
or via
Takealot. All of this was
communicated in a virtual meeting between Takealot, Corex and
Poweroak in April 21th 2023 [sic]. So Poweroak
had to accept it had
to change its business plan and agreed not to continue with its plans
and efforts to sell Bluetti products
on its own online platform
through Takealot.” (emphasis in the original)
[61]
In its replying affidavit, Corex responds
to this paragraph as follows:
“
The
contents of paragraph 125 are specifically noted in that it is
evident that Takealot would not be prepared to essentially compete
with the First Respondent by purchasing of the Bluetti products from
the Applicant and having the First Respondent have a store
on the
Takealot marketplace.”
[62]
Accordingly, on Corex’s own version
in the replying affidavit, Poweroak is not guilty of the conduct
sought to be interdicted
in prayer 4 of the notice of motion.
# Conclusion
Conclusion
[63]
Applying the authorities referred to
earlier, this court lacks jurisdiction to entertain Corex’s
application.
[64]
This matter is distinguishable from
Foize
inter alia
because
–
64.1
it has not been established that the
contract in question was concluded in South Africa;
64.2
Poweroak’s primary obligations under
the second agreement are required to be performed in China; and
64.3
the matter falls squarely within the
exception identified by the Supreme Court of Appeal when it said that
“
a court of this country should
not grant an interdict against a peregrinus where the act sought to
be interdicted would take place
outside its area of jurisdiction”.
[65]
I accordingly make the following order:
(1)
The forms and service provided for in the
rules of this court are dispensed with and the matter is enrolled for
hearing urgently
in terms of rule 6(12)(a).
(2)
The application is struck from the roll.
(3)
Corex is directed to pay Poweroak’s
costs on the party and party scale.
AC DODSON AJ
Acting Judge of the High
Court
Gauteng Division,
Johannesburg
Counsel for the
Applicant :
S Mushet
Instructed by:
Gittins Attorneys Inc
Counsel for the
Respondent :
R Willis
Instructed by:
Marshall Attorneys
Date
of hearing: 7 August 2023
Date of Judgment: 16
August 2023
Judgment handed down
electronically through uploading onto Caselines.
[1]
Gcaba
v Minister for Safety and Security
2010
(1) SA 238
(CC) at para 74.
[2]
Graaff-Reinet
Municipality v Van Ryneveld’s Pass Irrigation Board
1950
(2)SA 420 (A) at 424.
[3]
DE
Van Loggerenberg
Pollak
The South African Law of Jurisdiction
(Juta
3
rd
Ed) p 2 [service 7, 2022].
[4]
Wright
v Stuttaford & Co
1929
EDL 10
at 42, referring to the definition adopted in Vromans
De
Foro Competenti
and
approved in
Spendiff
NO v Kolektor (Pty) Ltd
[1992] ZASCA 18
;
1992
(2) SA 537
(A) at 551 C-D.
[5]
The
Selective Voet being the Commentary on the Pandects translated by
Percival Gane Butterworths 1955 Vol 1 p203.
[6]
Ibid
at p243; Voet Book 2 title 1 section 46.
[7]
Van
Loggerenberg above n3, at p 5 [service 7, 2022].
[8]
Corex
in its replying affidavit replies to this paragraph along with
several other paragraphs of the answering affidavit by saying
“[t]he
contents hereof are denied insofar as they are inconsistent with the
Founding Affidavit and what has been stated
herein above in respect
of jurisdiction”. It also denies that the distribution
agreement amounts to a simple sale
agreement. Nothing in the
preceding paragraphs of the replying affidavit or in the founding
affidavit has the effect of
placing in issue the particular terms
upon which products are shipped free on board Shenzhen, as alleged
by Poweroak.
[9]
Kibe
v Mphoko
and
Ano
1958
(1) SA 364 (N).
[10]
Zastron
was in the former Orange Free State province of South Africa.
[11]
Here
citing
Leyland
v Chetwynd
18
1901 S.C. 239
;
Kramarski
v Kramarski and others
`906
T.S 937;
Brown
v McDonald
1911
E.D.L. 423
;
Ex
parte Kirsten,
1921
C.P.D.608 and
Ex
parte Winter
1948
(3) SA 377
(W).
[12]
South
Atlantic Islands Development Corporation Ltd v Buchan
1971 (1) SA 234 (C).
[13]
Ex
parte Hay Management Consultants (Pty) Ltd
2000
(3) SA 501 (W).
[14]
Foize
Africa (Pty) Ltd v Foize Beheer BV and others
2013
(3) SA 91 (SCA).
[15]
Kibe,
above
fn 6
[16]
Van
Loggerenberg, above at p 274 (service 7, 2022).
[17]
Van
Loggerenberg, above at p 276 (service 5, 2021), referring also to
Trustees
Assigned Estate of Epstein v Manchester Assurance Co
1903
24 NLR 41
;
South
Atlantic Islands Development
,
above fn 9.
[18]
A
Concise Dictionary of Business
Oxford University Press p150.
[19]
The
Port of Shenzen is described on Wikipedia as “a collective
name of a number of ports along parts of the coastline of
Shenzen,
Guangdong Province, China. These ports as a whole form one of the
busiest and fastest growing container ports in the
world.”
See https://en.wikipedia.org/wiki/Port_of_Shenzhen.
[20]
As
appears from prayer 2 of its notice of motion. It is quoted in
paragraph 50 below.
[21]
Kibe
above fn 6 at 367A.
[22]
Kibe
above n10
.
sino noindex
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