EOH Mthombo (Pty) Ltd v Bheekie-Odhav (C177/12) [2012] ZALCCT 10 (22 March 2012)

EOH Mthombo (Pty) Ltd v Bheekie-Odhav (C177/12) [2012] ZALCCT 10 (22 March 2012)

The applicant failed to establish a clear right to enforce the restraint of trade clause. There was no evidence that the respondent was employed by a client of the applicant, solicited employees, or caused clients to transfer business. The restraint was found to be overbroad, lacking reasonable limitation in area and subject matter, and thus contrary to public policy. The applicant's attempt to narrow the relief was insufficient, as courts are reluctant to trim overbroad restraints at the behest of the drafter. The respondent's constitutional right to freely choose her occupation outweighed the applicant's interests, and no protectable interest was shown to be threatened. Accordingly, the...

Citation
[2012] ZALCCT 10
Parties
Applicant: EOH Mthombo (Pty) Ltd; Respondent: Prelene Bheekie-Odhav
Court
Labour Court Cape Town
Jurisdiction
South Africa
Judgment Date
22 March 2012
Case Number
C177/12
Procedural Posture
Urgent Application / Final Interdict Application
Outcome
Application dismissed with costs.
Judges
Steenkamp
Legal Topics
Restraint of Trade, Protectable Interests, Enforceability of Contracts, Public Policy, Final Interdict
Labour Law Commercial and Corporate Restraint of Trade Protectable Interests Enforceability of Contracts Public Policy Final Interdict

Case Brief

Summary, issues, holding and outcome

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Parties

EOH Mthombo (Pty) Ltd

Applicant

Prelene Bheekie-Odhav

Respondent

Procedural Posture

Urgent Application / Final Interdict Application

Legal Issues

  1. 1 Whether the restraint of trade clause in the respondent's employment contract is enforceable against her new employment.
  2. 2 Whether the applicant has protectable interests threatened by the respondent's conduct.
  3. 3 Whether the restraint is reasonable in scope, duration, and subject matter.

Ratio Decidendi

The applicant failed to establish a clear right to enforce the restraint of trade clause. There was no evidence that the respondent was employed by a client of the applicant, solicited employees, or caused clients to transfer business. The restraint was found to be overbroad, lacking reasonable limitation in area and subject matter, and thus contrary to public policy. The applicant's attempt to narrow the relief was insufficient, as courts are reluctant to trim overbroad restraints at the behest of the drafter. The respondent's constitutional right to freely choose her occupation outweighed the applicant's interests, and no protectable interest was shown to be threatened. Accordingly, the...

Court Disposition

Application dismissed with costs.

Orders

  • The application is dismissed with costs.