Andritz Delkor (Pty) Ltd v Davis and Another (J2345/15) [2015] ZALCJHB 427 (17 December 2015)

Andritz Delkor (Pty) Ltd v Davis and Another (J2345/15) [2015] ZALCJHB 427 (17 December 2015)

The Labour Court has jurisdiction to enforce the restraint of trade agreement under section 77(3) of the BCEA, as the agreement concerns the employment relationship. The applicant demonstrated a clear protectable interest in confidential information and customer connections, which the first respondent could exploit in his new role with a competitor. The respondent's assertions regarding non-competition are untenable given the overlap in products and the listing of the second respondent as a competitor in the restraint agreement. The restraint period of 24 months was found excessive and reduced to 12 months in the public interest, but the restraint itself is reasonable and enforceable. The...

Citation
[2015] ZALCJHB 427
Parties
Applicant: Andritz Delkor (Pty) Ltd; Respondent: Grant Davis; Respondent: FLSmidth (Pty) Ltd
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
17 December 2015
Case Number
J2345/15
Procedural Posture
Urgent Application / Final Interdict Application
Outcome
Application granted. Final interdict issued enforcing the restraint of trade agreement, with the restraint period reduced to 12 months.
Judges
Nkutha-Nkontwana
Legal Topics
Restraint of Trade, Protectable Interest, Confidential Information, Customer Connections, Enforceability of Contracts
Labour Law Commercial and Corporate Restraint of Trade Protectable Interest Confidential Information Customer Connections Enforceability of Contracts

Case Brief

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Parties

Andritz Delkor (Pty) Ltd

Applicant

Grant Davis

Respondent

FLSmidth (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Final Interdict Application

Legal Issues

  1. 1 Whether the Labour Court has jurisdiction to enforce the restraint of trade agreement in this employment context.
  2. 2 Whether the restraint of trade agreement is reasonable and enforceable under South African law.
  3. 3 Whether the applicant has a protectable proprietary interest justifying the restraint.

Ratio Decidendi

The Labour Court has jurisdiction to enforce the restraint of trade agreement under section 77(3) of the BCEA, as the agreement concerns the employment relationship. The applicant demonstrated a clear protectable interest in confidential information and customer connections, which the first respondent could exploit in his new role with a competitor. The respondent's assertions regarding non-competition are untenable given the overlap in products and the listing of the second respondent as a competitor in the restraint agreement. The restraint period of 24 months was found excessive and reduced to 12 months in the public interest, but the restraint itself is reasonable and enforceable. The...

Court Disposition

Application granted. Final interdict issued enforcing the restraint of trade agreement, with the restraint period reduced to 12 months.

Orders

  • The first respondent is interdicted and restrained from being employed by or associated with the second respondent within South Africa for 12 months from 30 September 2015 to 30 September 2016.
  • The first respondent is interdicted and restrained from being employed by or associated with any entity (including the second respondent) conducting activities in competition with the applicant for 12 months from 30 September 2015 to 30 September 2016.