CRS Technologies (Pty) Ltd v Mckerrel and Others (A308/19) [2022] ZAGPPHC 535 (19 July 2022)

CRS Technologies (Pty) Ltd v Mckerrel and Others (A308/19) [2022] ZAGPPHC 535 (19 July 2022)

The court found that the first and fourth respondents were aware of the court order dated 18 April 2017 and that they used the appellant's software programme, including the evaluation copy, in contravention of the order. The respondents failed to provide a plausible explanation for their conduct and did not rebut the inference of deliberate and mala fide non-compliance. The court held that the evaluation copy was covered by the terms of the order and that the respondents' actions constituted contempt. The previous court erred in finding otherwise. The matter was referred back to the court a quo for consideration of an appropriate sanction for contempt.

Citation
[2022] ZAGPPHC 535
Parties
Appellant: CRS Technologies (Pty) Ltd; Respondent: James Mckerrell; Respondent: Francesco Arico; Respondent: Mark Andrew Schorn; Respondent: Flash Cloud (Pty) Ltd t/a The People Solutions Company
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
19 July 2022
Case Number
A308/19
Procedural Posture
Civil Appeal / Appeal Against Dismissal of Contempt Application
Outcome
Appeal upheld; order of court a quo set aside and substituted. First and fourth respondents declared in contempt of paragraphs 1 and 3 of the court order granted on 18 April 2017. Matter referred back for consideration of sanction.
Judges
Mngqibisa-Thusi, Mali, Millar
Legal Topics
Civil Contempt of Court, Software Intellectual Property, Interdict, Burden of Proof, Wilfulness and Mala Fides
Civil Procedure Commercial and Corporate Civil Contempt of Court Software Intellectual Property Interdict Burden of Proof Wilfulness and Mala Fides

Case Brief

Summary, issues, holding and outcome

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Parties

CRS Technologies (Pty) Ltd

Appellant

James Mckerrell

Respondent

Francesco Arico

Respondent

Mark Andrew Schorn

Respondent

Flash Cloud (Pty) Ltd t/a The People Solutions Company

Respondent

Procedural Posture

Civil Appeal / Appeal Against Dismissal of Contempt Application

Legal Issues

  1. 1 Whether the first and fourth respondents were in contempt of the court order dated 18 April 2017.
  2. 2 Whether the evaluation copy of the software was covered by the terms of the court order.
  3. 3 Whether the respondents acted wilfully and with mala fides in contravening the order.

Ratio Decidendi

The court found that the first and fourth respondents were aware of the court order dated 18 April 2017 and that they used the appellant's software programme, including the evaluation copy, in contravention of the order. The respondents failed to provide a plausible explanation for their conduct and did not rebut the inference of deliberate and mala fide non-compliance. The court held that the evaluation copy was covered by the terms of the order and that the respondents' actions constituted contempt. The previous court erred in finding otherwise. The matter was referred back to the court a quo for consideration of an appropriate sanction for contempt.

Court Disposition

Appeal upheld; order of court a quo set aside and substituted. First and fourth respondents declared in contempt of paragraphs 1 and 3 of the court order granted on 18 April 2017. Matter referred back for consideration of sanction.

Orders

  • The appeal is upheld with costs.
  • The order of the court a quo is set aside and substituted by the following order: It is declared that the first and fourth respondents are in contempt of paragraphs 1 and 3 of the court order granted on 18 April 2017 by the Honourable Mr Justice Mothle.