Corrocoat SA (Pty) Ltd v Lavental (10995/2012) [2013] ZAKZDHC 20 (15 March 2013)

Corrocoat SA (Pty) Ltd v Lavental (10995/2012) [2013] ZAKZDHC 20 (15 March 2013)

The court considered the employment contract and its restraint and confidentiality clauses. It found that the respondent, by virtue of his senior position, had access to confidential information and customer relationships. The restraint of trade clause was found to be reasonable in duration and geographic scope, except for the explicit exclusion relating to rubber lining. The respondent's new employment with a competitor in the rubber lining field fell within the exception, but the evidence suggested he might use confidential information and relationships to solicit business from the applicant's customers. The applicant established a clear right to protection of its confidential...

Citation
[2013] ZAKZDHC 20
Parties
Applicant: Corrocoat SA (Pty) Ltd; Respondent: Richard Scott Lavental
Court
Kwazulu-Natal High Court, Durban
Jurisdiction
South Africa
Judgment Date
15 March 2013
Case Number
10995/2012
Procedural Posture
Urgent Application / Final Interdict Application
Outcome
Final interdict granted in part.
Judges
S R Mullins
Legal Topics
Restraint of Trade, Confidential Information, Final Interdict, Employment Contract
Commercial and Corporate Civil Procedure Restraint of Trade Confidential Information Final Interdict Employment Contract

Case Brief

Summary, issues, holding and outcome

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Parties

Corrocoat SA (Pty) Ltd

Applicant

Richard Scott Lavental

Respondent

Procedural Posture

Urgent Application / Final Interdict Application

Legal Issues

  1. 1 Whether the respondent should be interdicted from contacting the applicant's customers for eight months.
  2. 2 Whether the respondent should be restrained from using confidential information obtained during his employment.
  3. 3 Whether the restraint of trade and confidentiality clauses in the employment contract are enforceable in the circumstances.

Ratio Decidendi

The court considered the employment contract and its restraint and confidentiality clauses. It found that the respondent, by virtue of his senior position, had access to confidential information and customer relationships. The restraint of trade clause was found to be reasonable in duration and geographic scope, except for the explicit exclusion relating to rubber lining. The respondent's new employment with a competitor in the rubber lining field fell within the exception, but the evidence suggested he might use confidential information and relationships to solicit business from the applicant's customers. The applicant established a clear right to protection of its confidential...

Court Disposition

Final interdict granted in part.

Orders

  • The respondent is interdicted for eight months from contacting, in any manner, any of the applicant's customers listed in Annexure 'A' for the purpose of securing business.
  • The respondent is restrained from using any confidential information acquired during his employment with the applicant relating to the business of the customers identified in Annexure 'A'.