AMIC Trading (Pty) Ltd v Du Plessis and Another (33948/14) [2015] ZAGPPHC 70 (17 February 2015)
- Citation
- [2015] ZAGPPHC 70
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- North Gauteng High Court, Pretoria
- Panel
- M F Legodi
- Case number
- 33948/14
More details
- Court
- North Gauteng High Court, Pretoria
- Panel
- M F Legodi
- Case number
- 33948/14
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the respondents, as former employees, had access to confidential information, including an internal email and a sale agreement. While the applicant succeeded in obtaining an interdict restraining the respondents from using, sharing, or publishing confidential information, the court considered the context of the labour dispute and the relevance of the email to the respondents' claims. The court held that it would be unfair to burden the respondents with a costs order, as their resistance was motivated by the need to use the email in the Labour Court and they acted as laypersons. The court exercised its discretion to order that each party pay their own costs, ensuring the respondents were not permanently prejudiced in the labour proceedings.
Court disposition
Interdict granted restraining respondents from using, sharing, or publishing confidential information; each party to pay their own costs.
Orders
- The first and second respondents are interdicted and restrained from copying or obtaining copies of the applicant's information and communications stored on its email and file servers or backup drives, except for information in the public domain.
- The respondents are interdicted and restrained from sharing, disseminating, publishing, or utilizing for any unlawful purpose, or for any purpose aimed at causing the applicant embarrassment, harm, or prejudice, any confidential information belonging to the applicant, including information unlawfully obtained from the applicant's IT systems during and after their employment, unless with the applicant's express permission.
- Each party is to pay his or her own costs.
02
Material facts
Parties
AMIC Trading (Pty) Ltd
Applicant Counsel: W P BekkerDu Plessis Willem Hendrik
RespondentIrving Jennifer Valerie
RespondentAmounts and remedies
- Retrenchment Package for First Respondent (wimpie): ZAR 228,588.96
- First Respondent Monthly Basic Salary: ZAR 71,205
- First Respondent Monthly Cost to Company: ZAR 82,880.67
- Retrenchment Package for Second Respondent (jenny): ZAR 149,700.32
- Second Respondent Monthly Basic Salary: ZAR 30,474
- Second Respondent Monthly Cost to Company: ZAR 35,858.85
03
Procedural history
Posture
Urgent Application / Judgment on Costs Following Grant of Interdict
04
Questions and positions
Legal issues
- 01
Whether the respondents should be interdicted from using, sharing, or publishing confidential information of the applicant.
- 02
Whether the respondents should be burdened with a costs order given the circumstances of the dispute.
Party arguments
- Applicant
- The applicant argued that the respondents, as former employees, unlawfully obtained and retained confidential information, including internal emails and a sale agreement, and sought to use such information in ongoing labour disputes. The applicant requested an interdict restraining the respondents from copying, sharing, or utilizing any confidential information not in the public domain, and pressed for a costs order on the basis of substantial success in obtaining the interdict.
- Respondent
- The respondents, representing themselves, contended that the email and sale agreement were obtained in the ordinary course of their employment and were relevant to their pending labour disputes. They argued that their possession and intended use of the documents were not unlawful and that it would be unfair to prevent them from using such evidence in the Labour Court. They opposed the costs order, asserting that their resistance was based on the need to use the email in the labour proceedings.
05
Court’s reasoning
Legal principles
- 01
Legal principle as stated by the court
An order for costs is a discretionary remedy that must be exercised judicially and fairly, considering the circumstances of both parties.
- 02
Legal principle as stated by the court
Confidential information obtained during employment cannot be randomly used or disclosed without the employer's permission or a court order.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the respondents, as former employees, had access to confidential information, including an internal email and a sale agreement. While the applicant succeeded in obtaining an interdict restraining the respondents from using, sharing, or publishing confidential information, the court considered the context of the labour dispute and the relevance of the email to the respondents' claims. The court held that it would be unfair to burden the respondents with a costs order, as their resistance was motivated by the need to use the email in the Labour Court and they acted as laypersons. The court exercised its discretion to order that each party pay their own costs, ensuring the respondents were not permanently prejudiced in the labour proceedings.
Obiter and limits
- The court refrained from making a final determination on the relevance of the confidential documents to the Labour Court proceedings, leaving that issue for the Labour Court to decide.
- The court expressed concern about the applicant's conduct as suggested in the internal email, noting its potential unfairness in the restructuring and retrenchment process.
Court disposition
Interdict granted restraining respondents from using, sharing, or publishing confidential information; each party to pay their own costs.
- The first and second respondents are interdicted and restrained from copying or obtaining copies of the applicant's information and communications stored on its email and file servers or backup drives, except for information in the public domain.
- The respondents are interdicted and restrained from sharing, disseminating, publishing, or utilizing for any unlawful purpose, or for any purpose aimed at causing the applicant embarrassment, harm, or prejudice, any confidential information belonging to the applicant, including information unlawfully obtained from the applicant's IT systems during and after their employment, unless with the applicant's express permission.
- Each party is to pay his or her own costs.
Source and reliance status
North Gauteng High Court, Pretoria
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
North Gauteng High Court, Pretoria
Judgment
IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG DIVISION,PRETORIA)
CASE NO: 33948/14
DATE: 17 FEBRUARY 2015
IN THE MATTER
BETWEEN
AMIC TRADING (PTY) LTD.....................................................................................................Applicant
and
DU PLESSIS WILLEM HENDRIK................................................................................First Respondent
IRVING JENNIFER VALERIE.................................................................................Second Respondent
JUDGMENT
LEGODI, J
[1] In this matter I made an as follows:
“1.1 The first and second respondents are interdicted and restrained from:-
1.1.1 Copying or obtaining copies by any means of any of the applicant's information and communications stored on or otherwise contained on its email and file servers and or any backup drives wherever they may be situated, save such information and information as may be available in the public domain;
1.1.2 sharing, disseminating, publishing and/or utilizing for any unlawful purpose, or for any purpose aimed at causing the applicant embarrassment, harm or prejudice, any information and communications belonging to the applicant that is not in the public domain and/or which is confidential to the applicant, including all information and communications unlawfully obtained by the respondents from the applicant’s information technology systems during and after their tenure of employment with the applicant, in whatever form that such information may exist. The respondents are further interdicted and restrained from using, sharing, disseminating, publishing and or utilizing for any purpose confidential information of the applicant currently in their possession (now or in future), specifically referring to the sale agreement entered into between the applicant and Redgwoods (Pty) Ltd and email communication between the directors of the applicant and Mr S Accolla dated September 2013 without the applicant’s express permission, which permission will not unreasonably be with-held. ”
[2] The order was made on the 3 February 2015. I reserved judgment on the issue of costs. I now proceed to deal in this judgment with the issue of costs.
[3] The two respondents were both the employees of a company called AMIC Trading (Pty) Ltd, the applicant. The respondents were initially the employees of Redgwoods until their employment were transferred to the applicant. The first respondent had been employed by Redgwoods during February 2010 as a national risk manager and the second respondent as a personal assistant to one of the directors of Redgwoods since 2005. When the applicant took over from Redgwoods, it allegedly had to restructure its operations and as a result it had to retrench about nine of its employees.
[4] The two respondents were amongst the employees who were to be retrenched. The respondents were bitter about the retrenchment and or the restructuring insofar as it affected them. For example, on the 19 September 2013 the first respondent is alleged to have displayed a vendetta against the applicant. On the 5 September 2013 a suggestion was made to the second respondent to be transferred to the applicant’s head office in Durban. That meant that she had to relocate from Gauteng to Durban. When she refused to be relocated, she was offered a post as internal auditor at the applicant’s branch in Stoneridge Johannesburg. She declined the position and resigned on the 19 September 2013. The resignation was launched orally to the applicant’s human resources manager, one Mr Sergio Accolla who is also the deponent to the founding affidavit. It is alleged that the resignation was orally tendered in the most aggressive and rude manner, the first respondent allegedly resorting to personal insults against Mr Accolla.
[5] In an email sent to Mr Accolla on the 19 September 2013 at about 21 h54, the second respondent sought to retract her resignation and apologized for her conduct. About six days following the retrenchments and or resignations of the two respondents, it is alleged that one Mr Mari, a former employee of the applicant who was retrenched during April 2013, referred a labour dispute against the applicant to the CCMA for unfair dismissal. The respondents also instituted labour dispute proceedings in the Labour Court, Durban. The actions are been defended by the applicant and are still pending in the Labour Court.
[6] Two documents emerged during the exchange of documents in the labour court. The one document was a sole agreement between the applicant and Redgwood and the other, was an email dated 4 September 2013 addressed to two directors of the applicant. In the email, is stated as follows:
“Retrenchment package for Wimpie as end of September: R228 588,96 (even though he resigned and then at one stage re-joined the company, the period that he left the employment was not longer than a year therefore his initial date (1 Feb 2010) of engagement would stand). Here we are not obliged to pay relocation costs, our excuse is that for operational reasons we are relocating Head of Security function to Durban head office (he will raise the argument that can he not work out of a store and then will say NO because of operational reasons and we can justify this). So we would be liable for the package. His current basic is R71 205.00 per month and his current cost to company is R82 880.67.
Retrenchment package for Jenny as end of September: R149 700.32 (here we get away with this amount by telling her that we offer her a position in store for less than her salary (a salary that is in line with another person in that position, this would be defined as reasonable, naturally her skill set needs to one where she can do the job). So what we could do is offer her position as an admin supervisor (but we the offer needs to be once again reasonable) at a store or we create a position to work out of the store and offer her a reasonable amount as positions in stores are paid much lower than her salary. Should she reject the offer we retrench without paying her the severance package thus she gets nothing. Her current basic salary is R30 4 74.00 and her cost to company is R35 858.85”.
[7] The second respondent obtained the email in the course of her work when she was working on her boss’s computer, one of the directors. Because the email had direct bearing on her, she made a copy thereof. As regard the sale agreement between the applicant and Redgwoods (Pty) Ltd, it is not clear who was responsible for the disclosure thereof.
[8] This matter was argued on Tuesday 3 February 2015 after it was stood down on the 02 February 2015. The two respondents represented
themselves. As I said, I made an order as indicated in paragraph 1 of this judgment. The order was made after having taken time to explain to the respondents what the court’s prima facie view was. This was after counsel for the applicant indicated that he will only press for an order as in paragraphs 1.1.3 and 1.1.6 of the notice of motion. The rest of the reliefs sought in the notice of motion were abandoned at the instance of the applicant’s
counsel.
[9] The parties were therefore asked to address the court only on the issue of costs. Counsel for the applicant wanted the respondents to pay costs, the suggestion been that it substantially succeeded seen in the light of the order made.
[10] An order for costs is an exercise of discretion that has to be exercised judicially having regard to what is fair to parties. Judging by the positions held by both the respondents in Redgwood (PTY) Ltd; and later in the applicant, there can be no doubt that they would have been exposed to a lot of confidential information. The email which was sent out before their retrenchments or resignations, in my view, is extremely relevant to the dispute in the Labour Court. The email suggests that, the applicant never intended to act fairly to the respondents in the process of restructuring or retrenchment.
I should not be understood to be making a final determination in this regard. What remains however, is that, the respondents laid their hands on it, whether accidentally or intentionally, it does not matter. The respondents want to use it in the Labour Court. As lay persons, they cannot be blamed for keeping and wanting to use the email. However, it is a confidential document that cannot be randomly used without the permission of the applicant or by an order of the court. I deliberately refrained from making a decision on this. I want to believe that the Labour Court will be in a better position to deal with the issue when it arises in that court.
[11] It is however of great concern that the applicant could deal with the respondents as suggested in the email. I think, the respondents would have been at pains to let it go when the present proceedings were instituted. The present proceedings had the potential to permanently deny them of the opportunity to use the email in the labour court. To burden them with an order for costs in the circumstances of, would in my view, be unfair. The initial proposed order was thus amended at the instance of this court to ensure that the respondents are not permanently and adversely affected in the labour court.
[12] The sale agreement referred to earlier in this judgment is also a confidential document. I am reluctant to express a view on the relevancy or otherwise of the document during the proceedings in the Labour Court. The fact remains, is a confidential document. In seeking to ensure that the respondents are not adversely affected in the labour proceedings, I made a draft order as amended, an order of the court.
[13] It looks like the basis for resisting the present proceedings was the email. In fact, the first respondent said so during argument. As I said, it would be unfair to burden the respondents with costs order.
[15] Consequently, each party is hereby to pay his or her own costs.
M F LEGODI
JUDGE OF THE HIGH
COURT
FOR THE APPLICANT: W P BEKKER
INSTRUCTED BY:
MAHARAJ ATTORNEYS
c/o PETZER, DU TOIT & RMAULIFHO ATTORNEYS
Hatfield Bridge Office Park Cnr,
Church & Richard Streets Hatfield, PRETORIA
REF
TEL: 012 342 9895
FOR THE RESPONDENTS: IN PERSON
MATTER HEARD ON: 03 FEBRUARY 2015
JUDGMENT HANDED DOWN: 16/02/2015
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