Frogitt & Vonkel CC v Macbride and Others (15921/10) [2010] ZAWCHC 347 (9 December 2010)

Frogitt & Vonkel CC v Macbride and Others (15921/10) [2010] ZAWCHC 347 (9 December 2010)

The court found that the restraint of trade clause (clause 16) was enforceable for 12 months post-employment, but that period had expired by the time of judgment. The confidentiality clause (clause 15), which purported to prohibit use of confidential information indefinitely, was held to be unreasonable given the nature of the information and its availability. The court amended the period of restraint under clause 15 to five years, finding this reasonable in the circumstances. The respondents were found to have used confidential client information in breach of their contracts, justifying an interdict for five years. The applicant failed to prove defamation, relying on hearsay and...

Citation
[2010] ZAWCHC 347
Parties
Applicant: Frogitt & Vonkel CC; Respondent: Samantha Lucille Macbride; Respondent: Chantal Packery; Respondent: Elberti Wines (Pty) LTD; Respondent: Wydijnhof & Cilliers
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
9 December 2010
Case Number
15921/10
Procedural Posture
Urgent Application / Final Judgment on Application for Interdict and Restraint of Trade Enforcement
Outcome
Application granted in part; interdict against use of confidential information for five years; defamation interdict refused.
Judges
Baartman
Legal Topics
Restraint of Trade, Confidential Information, Employment Contracts, Interdict, Defamation, Contractual Interpretation
Commercial and Corporate Civil Procedure Restraint of Trade Confidential Information Employment Contracts Interdict Defamation Contractual Interpretation

Case Brief

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Parties

Frogitt & Vonkel CC

Applicant

Samantha Lucille Macbride

Respondent

Chantal Packery

Respondent

Elberti Wines (Pty) LTD

Respondent

Wydijnhof & Cilliers

Respondent

Procedural Posture

Urgent Application / Final Judgment on Application for Interdict and Restraint of Trade Enforcement

Legal Issues

  1. 1 Whether the restraint of trade and confidentiality clauses in the employment contracts are enforceable and reasonable.
  2. 2 Whether the respondents unlawfully used the applicant's confidential client information after termination of employment.
  3. 3 Whether the applicant is entitled to an interdict restraining the respondents from using confidential information and contacting clients.

Ratio Decidendi

The court found that the restraint of trade clause (clause 16) was enforceable for 12 months post-employment, but that period had expired by the time of judgment. The confidentiality clause (clause 15), which purported to prohibit use of confidential information indefinitely, was held to be unreasonable given the nature of the information and its availability. The court amended the period of restraint under clause 15 to five years, finding this reasonable in the circumstances. The respondents were found to have used confidential client information in breach of their contracts, justifying an interdict for five years. The applicant failed to prove defamation, relying on hearsay and...

Court Disposition

Application granted in part; interdict against use of confidential information for five years; defamation interdict refused.

Orders

  • The respondents are interdicted from using the applicant's confidential client information for a period of five years from termination of employment.
  • The respondents are ordered to delete and/or destroy all material containing applicant's client details obtained during their employment.