Automotive Tooling Systems (Pty) Ltd v Wilkens and Others (581/05) [2006] ZASCA 167; [2007] 4 All SA 1073 (SCA); 2007 (2) SA 271 (SCA); (2007) 28 ILJ 145 (SCA); 2006 BIP 347 (SCA) (28 September 2006)

Automotive Tooling Systems (Pty) Ltd v Wilkens and Others (581/05) [2006] ZASCA 167; [2007] 4 All SA 1073 (SCA); 2007 (2) SA 271 (SCA); (2007) 28 ILJ 145 (SCA); 2006 BIP 347 (SCA) (28 September 2006)

The Supreme Court of Appeal held that the appellant failed to establish a proprietary interest in the know-how and skills acquired by the respondents. The evidence showed that the skills in question were general to the trade and not confidential or unique to the appellant. The appellant did not identify any specific process, method, or information that was treated as confidential or deserving of protection. The restraint of trade clause sought to prevent the respondents from using their general skills and knowledge, which accrue to them personally and do not belong to the employer. Such a restraint is unreasonable and contrary to public policy. The service agreements, even if intended to...

Citation
[2006] ZASCA 167
Parties
Appellant: Automotive Tooling Systems (Pty) Ltd; Respondent: Sarel Johannes Wilkens; Respondent: David Schalk Rothmann; Respondent: AMS Manufacturing (Pty) Ltd; Respondent: Advanced Marking Systems (Pty) Ltd; Respondent: Kyle Conan Parker; Respondent: Wybrandt Willem Coetzee
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
28 September 2006
Case Number
581/05
Procedural Posture
Civil Appeal / Appeal From Pretoria High Court; Leave Granted
Outcome
Appeal dismissed with costs.
Judges
Farlam, Nugent, Lewis, Maya, Cachalia
Legal Topics
Restraint of Trade, Contract of Employment, Confidential Information, Proprietary Interest, Public Policy
Commercial and Corporate Labour Law Restraint of Trade Contract of Employment Confidential Information Proprietary Interest Public Policy

Case Brief

Summary, issues, holding and outcome

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Parties

Automotive Tooling Systems (Pty) Ltd

Appellant

Sarel Johannes Wilkens

Respondent

David Schalk Rothmann

Respondent

AMS Manufacturing (Pty) Ltd

Respondent

Advanced Marking Systems (Pty) Ltd

Respondent

Kyle Conan Parker

Respondent

Wybrandt Willem Coetzee

Respondent

Procedural Posture

Civil Appeal / Appeal From Pretoria High Court; Leave Granted

Legal Issues

  1. 1 Whether the restraint of trade clause in the service agreements is enforceable against the respondents.
  2. 2 Whether the appellant has a proprietary interest in the know-how and skills acquired by the respondents during their employment.
  3. 3 Whether the service agreements were concluded in fraudem legis to circumvent the Labour Relations Act.

Ratio Decidendi

The Supreme Court of Appeal held that the appellant failed to establish a proprietary interest in the know-how and skills acquired by the respondents. The evidence showed that the skills in question were general to the trade and not confidential or unique to the appellant. The appellant did not identify any specific process, method, or information that was treated as confidential or deserving of protection. The restraint of trade clause sought to prevent the respondents from using their general skills and knowledge, which accrue to them personally and do not belong to the employer. Such a restraint is unreasonable and contrary to public policy. The service agreements, even if intended to...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.