Freemantle and Another v ADIDAS (South Africa) (Pty) Ltd (A 166/2012) [2013] ZAWCHC 98 (26 July 2013)

Freemantle and Another v ADIDAS (South Africa) (Pty) Ltd (A 166/2012) [2013] ZAWCHC 98 (26 July 2013)

The court found that neither Freemantle nor Puma demonstrated exceptional circumstances as required by section 21A(3) of the Supreme Court Act to justify the appeal proceeding, given that the restraint period had expired and the orders would have no practical effect or result. The costs incurred, while substantial, did not meet the threshold for exceptional circumstances. The reputational and public interest arguments advanced by Puma were rejected as speculative and fact-bound, not warranting appellate intervention. Consequently, the merits of the appeal were not considered, and both appeals were dismissed with costs.

Citation
[2013] ZAWCHC 98
Parties
Appellant: Derek Freemantle; Appellant: Puma Sport Distributors (Pty) Ltd; Respondent: Adidas (South Africa) (Pty) Ltd
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
26 July 2013
Case Number
A 166/2012
Procedural Posture
Civil Appeal / Appeal Against Interdicts Enforcing Restraint of Trade and Confidentiality Clauses
Outcome
Both appeals dismissed with costs, including costs of the rule 49(11) application, to be paid jointly and severally by the appellants.
Judges
J. I. Cloete, B. M. Griesel, N. J. Yekiso
Legal Topics
Restraint of Trade, Confidential Information, Unlawful Competition, Employment Contracts
Commercial and Corporate Delict Restraint of Trade Confidential Information Unlawful Competition Employment Contracts

Case Brief

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Parties

Derek Freemantle

Appellant

Puma Sport Distributors (Pty) Ltd

Appellant

Adidas (South Africa) (Pty) Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal Against Interdicts Enforcing Restraint of Trade and Confidentiality Clauses

Legal Issues

  1. 1 Whether the appeal has any practical effect or relevant result given the lapse of the restraint period.
  2. 2 Whether costs incurred by the appellants constitute exceptional circumstances under section 21A(3) of the Supreme Court Act.
  3. 3 Whether the order against Puma impliedly confirms unlawful competition or complicity in breach of restraint of trade.

Ratio Decidendi

The court found that neither Freemantle nor Puma demonstrated exceptional circumstances as required by section 21A(3) of the Supreme Court Act to justify the appeal proceeding, given that the restraint period had expired and the orders would have no practical effect or result. The costs incurred, while substantial, did not meet the threshold for exceptional circumstances. The reputational and public interest arguments advanced by Puma were rejected as speculative and fact-bound, not warranting appellate intervention. Consequently, the merits of the appeal were not considered, and both appeals were dismissed with costs.

Court Disposition

Both appeals dismissed with costs, including costs of the rule 49(11) application, to be paid jointly and severally by the appellants.

Orders

  • Both appeals are dismissed with costs, including the costs of the application in terms of rule 49(11), all such costs to be paid by the appellants jointly and severally.