Discovery Life Limited v De Meyer (31288/18) [2018] ZAGPJHC 594 (26 October 2018)

Discovery Life Limited v De Meyer (31288/18) [2018] ZAGPJHC 594 (26 October 2018)

The court found that the respondent breached the restraint of trade provisions by failing to return confidential client files upon resignation and by exporting client information to private email addresses. The respondent's subsequent return of the files did not cure the breach. The applicant established both the existence of the agreement and its breach, shifting the onus to the respondent to prove the restraint was unreasonable. The respondent failed to discharge this onus. The court held that the applicant's customer connections and confidential information are legitimate interests warranting protection. The respondent's undertakings and denials were insufficient to defeat the...

Citation
[2018] ZAGPJHC 594
Parties
Applicant: Discovery Life Limited; Respondent: Devan Andre De Meyer
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
26 October 2018
Case Number
31288/18
Procedural Posture
Urgent Application / Interdict Pending Final Relief
Outcome
Application granted with costs on an attorney-client scale.
Judges
L. Windell
Legal Topics
Restraint of Trade, Confidential Information, Interdictory Relief, Employment Contract Breach
Commercial and Corporate Civil Procedure Restraint of Trade Confidential Information Interdictory Relief Employment Contract Breach

Case Brief

Summary, issues, holding and outcome

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Parties

Discovery Life Limited

Applicant

Devan Andre De Meyer

Respondent

Procedural Posture

Urgent Application / Interdict Pending Final Relief

Legal Issues

  1. 1 Whether the respondent breached the restraint of trade provisions in his employment contract by retaining and exporting confidential client information after resignation.
  2. 2 Whether the applicant is entitled to interdictory relief pending final determination of the main application.
  3. 3 Whether the restraint of trade is enforceable and reasonable under the circumstances.

Ratio Decidendi

The court found that the respondent breached the restraint of trade provisions by failing to return confidential client files upon resignation and by exporting client information to private email addresses. The respondent's subsequent return of the files did not cure the breach. The applicant established both the existence of the agreement and its breach, shifting the onus to the respondent to prove the restraint was unreasonable. The respondent failed to discharge this onus. The court held that the applicant's customer connections and confidential information are legitimate interests warranting protection. The respondent's undertakings and denials were insufficient to defeat the...

Court Disposition

Application granted with costs on an attorney-client scale.

Orders

  • The application is granted with costs on an attorney-client scale.
  • Draft order marked 'X' made an order of court.