Betterbond (Pty) Ltd and Another v Smit and Another (J2898/18) [2018] ZALCJHB 318 (5 October 2018)

Betterbond (Pty) Ltd and Another v Smit and Another (J2898/18) [2018] ZALCJHB 318 (5 October 2018)

The court found that there was no express or implied intention to novate the original restraint of trade and confidentiality undertakings in Mr Smit's employment contract. The subsequent undertaking signed on 6 August 2018 did not vary or cancel the original obligations. Betterbond retained its rights to enforce the full terms of the restraint and confidentiality covenants. Mr Smit breached these obligations by soliciting clients and disclosing confidential information to Multinet. The information in question, including client lists and business relationships, constituted confidential and proprietary interests deserving protection. The restraint was reasonable in scope, limited to...

Citation
[2018] ZALCJHB 318
Parties
Applicant: Betterbond (Pty) Ltd; Applicant: Betterlife Group (Pty) Ltd; Respondent: Alister Smit; Respondent: Multinet Home Loans
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
5 October 2018
Case Number
J2898/18
Procedural Posture
Urgent Application / Final Interdict
Outcome
Final interdict granted; restraint and confidentiality undertakings enforced against Mr Smit; costs awarded to applicants.
Judges
Nkutha-Nkontwana
Legal Topics
Restraint of Trade, Confidential Information, Enforceability of Contractual Terms, Protectable Interest, Novation, Final Interdict
Labour Law Commercial and Corporate Restraint of Trade Confidential Information Enforceability of Contractual Terms Protectable Interest Novation Final Interdict

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Parties

Betterbond (Pty) Ltd

Applicant

Betterlife Group (Pty) Ltd

Applicant

Alister Smit

Respondent

Multinet Home Loans

Respondent

Procedural Posture

Urgent Application / Final Interdict

Legal Issues

  1. 1 Whether the restraint of trade and confidentiality undertakings in Mr Smit's employment contract were superseded by the subsequent undertaking signed on 6 August 2018.
  2. 2 Whether the restraint of trade and confidentiality undertakings are reasonable and enforceable under South African law.
  3. 3 Whether Betterbond possesses protectable interests justifying enforcement of the restraint and confidentiality undertakings.

Ratio Decidendi

The court found that there was no express or implied intention to novate the original restraint of trade and confidentiality undertakings in Mr Smit's employment contract. The subsequent undertaking signed on 6 August 2018 did not vary or cancel the original obligations. Betterbond retained its rights to enforce the full terms of the restraint and confidentiality covenants. Mr Smit breached these obligations by soliciting clients and disclosing confidential information to Multinet. The information in question, including client lists and business relationships, constituted confidential and proprietary interests deserving protection. The restraint was reasonable in scope, limited to...

Court Disposition

Final interdict granted; restraint and confidentiality undertakings enforced against Mr Smit; costs awarded to applicants.

Orders

  • The application is heard as urgent and non-compliance with normal time periods is condoned.
  • Mr Alister Smit is interdicted and restrained in Gauteng until 25 February 2019 from conducting any business in competition with the applicants regarding restricted lead sources.