Bidvest Protea (COIN) (Pty) Ltd v Seetharam and Another (D 14/2022) [2022] ZALCD 2 (28 February 2022)

Bidvest Protea (COIN) (Pty) Ltd v Seetharam and Another (D 14/2022) [2022] ZALCD 2 (28 February 2022)

The court found that the first respondent voluntarily entered into restraint and confidentiality undertakings, and that the applicant has legitimate proprietary interests in confidential information and customer connections. The evidence established that the first respondent had access to sensitive information at a...

Source-derived case information.

Citation
[2022] ZALCD 2
Parties
Applicant: Bidvest Protea (COIN) (Pty) Ltd; Respondent: Michelle Seetharam; Respondent: Thorburn Security (Pty) Ltd
Court
Labour Court Durban
Jurisdiction
South Africa
Judgment Date
28 February 2022
Case Number
D 14/2022
Procedural Posture
Urgent Application / Final Determination of Urgent Application for Enforcement of Restraint and Confidentiality Undertakings
Outcome
Application granted in part; restraint enforced for 12 months from 1 January 2022; confidentiality undertakings enforced; costs awarded at 50% on party and party scale, excluding costs of postponement on 18 February 2022.
Judges
Van Niekerk
Legal Topics
Restraint of Trade, Confidential Information, Enforcement of Contract, Balance of Convenience
Labour Law Commercial and Corporate Restraint of Trade Confidential Information Enforcement of Contract Balance of Convenience

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Summary, issues, holding and outcome

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Parties

Bidvest Protea (COIN) (Pty) Ltd

Applicant

Michelle Seetharam

Respondent

Thorburn Security (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Final Determination of Urgent Application for Enforcement of Restraint and Confidentiality Undertakings

Legal Issues

  1. 1 Whether the restraint of trade and confidentiality undertakings signed by the first respondent are enforceable.
  2. 2 Whether the duration and geographic scope of the restraint are reasonable.
  3. 3 Whether the applicant has a protectable proprietary interest justifying enforcement of the restraint.

Ratio Decidendi

The court found that the first respondent voluntarily entered into restraint and confidentiality undertakings, and that the applicant has legitimate proprietary interests in confidential information and customer connections. The evidence established that the first respondent had access to sensitive information at a national level, and her employment with a direct competitor poses an ongoing risk to the applicant. The restraint's geographic scope was found reasonable given the national exposure, but the original 24-month duration was excessive; a 12-month period was deemed reasonable. The court rejected arguments that urgency was self-created and held that the applicant acted diligently....

Court Disposition

Application granted in part; restraint enforced for 12 months from 1 January 2022; confidentiality undertakings enforced; costs awarded at 50% on party and party scale, excluding costs of postponement on 18 February 2022.

Orders

  • The first respondent is interdicted and restrained for a period of 12 months from 1 January 2022 from being employed by or interested in any entity rendering security and related services in competition with the applicant anywhere in South Africa.
  • The first respondent is interdicted from divulging or disclosing any of the applicant's trade secrets and confidential information to any third party, in accordance with the restraint agreement.