Free State Transformers (Pty) Ltd trading as Free State Transformers Field Services v Ackerman and Another (3559/2013) [2013] ZAFSHC 222 (12 December 2013)

Free State Transformers (Pty) Ltd trading as Free State Transformers Field Services v Ackerman and Another (3559/2013) [2013] ZAFSHC 222 (12 December 2013)

The court found that the applicant had established the existence of a restraint of trade agreement and that the first respondent breached it by working for a competitor within the prohibited area and period. The applicant's interest in protecting its customer connections and confidential information was legitimate and threatened by the respondent's conduct. However, the original restraint was excessive in duration and geographical scope. The court curtailed the restraint to twelve months and a radius of 300 km from the applicant's premises, finding this reasonable to allow the applicant to protect its interests without unduly restricting the respondent's ability to work. The respondent...

Citation
[2013] ZAFSHC 222
Parties
Applicant: Free State Transformers (Pty) Ltd trading as Free State Transformers Field Services; Respondent: Fanie Ackerman; Respondent: Translec (Pty) Ltd
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
12 December 2013
Case Number
3559/2013
Procedural Posture
Urgent Application / Final Judgment After Opposed Application
Outcome
Application granted in part; restraint of trade enforced for twelve months and within a 300 km radius from applicant's premises; costs awarded against both respondents.
Judges
J P Daffue
Legal Topics
Restraint of Trade, Enforcement of Contract, Confidential Information, Customer Connections
Commercial and Corporate Civil Procedure Restraint of Trade Enforcement of Contract Confidential Information Customer Connections

Case Brief

Summary, issues, holding and outcome

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Parties

Free State Transformers (Pty) Ltd trading as Free State Transformers Field Services

Applicant

Fanie Ackerman

Respondent

Translec (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Final Judgment After Opposed Application

Legal Issues

  1. 1 Whether the restraint of trade agreement is enforceable against the first respondent.
  2. 2 Whether the duration and geographical scope of the restraint are reasonable.
  3. 3 Whether the applicant has a protectable interest justifying enforcement of the restraint.

Ratio Decidendi

The court found that the applicant had established the existence of a restraint of trade agreement and that the first respondent breached it by working for a competitor within the prohibited area and period. The applicant's interest in protecting its customer connections and confidential information was legitimate and threatened by the respondent's conduct. However, the original restraint was excessive in duration and geographical scope. The court curtailed the restraint to twelve months and a radius of 300 km from the applicant's premises, finding this reasonable to allow the applicant to protect its interests without unduly restricting the respondent's ability to work. The respondent...

Court Disposition

Application granted in part; restraint of trade enforced for twelve months and within a 300 km radius from applicant's premises; costs awarded against both respondents.

Orders

  • First respondent is prohibited for a period of twelve months from 1 January 2013 and within a radius of 300 km from applicant's offices at 29 George Lubbe Street, Hamilton, Bloemfontein from engaging in, soliciting business for, being a director or shareholder in, acting as consultant or advisor to, or financially...
  • First and second respondents are ordered to pay the applicant's costs of the application on an opposed basis, jointly and severally, the one to pay, the other to be absolved.