Global Network Systems (Pty) Ltd v Mack (JR 1514/09) [2010] ZALC 86; (2010) 31 ILJ 2602 (LC) (28 June 2010)

Global Network Systems (Pty) Ltd v Mack (JR 1514/09) [2010] ZALC 86; (2010) 31 ILJ 2602 (LC) (28 June 2010)

The court found that the restraint of trade clause in the respondent's employment contract did not expressly prohibit employment with a former customer, but rather targeted activities such as soliciting, dealing with, or supplying services as an alternative provider. The respondent's employment with Civcon, while resulting in a reduction of the applicant's business, did not amount to a breach of the restraint clause on a plain reading of its terms. The applicant failed to establish that the clause was intended to cover such employment, and the evidence did not support a finding of disclosure of confidential information. Accordingly, the respondent was not in breach of the restraint, and...

Citation
[2010] ZALC 86
Parties
Applicant: Global Network Systems (Pty) Ltd; Respondent: Mack, Thomas Rober James
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
28 June 2010
Case Number
JR 1514/09
Procedural Posture
Urgent Application / Return Day of Rule Nisi; Final Determination of Interdict and Costs
Outcome
Application dismissed; rule nisi discharged; costs awarded against applicant.
Judges
Lagrange
Legal Topics
Restraint of Trade, Employment Contract, Confidential Information, Solicitation of Clients
Labour Law Commercial and Corporate Restraint of Trade Employment Contract Confidential Information Solicitation of Clients

Case Brief

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Parties

Global Network Systems (Pty) Ltd

Applicant

Mack, Thomas Rober James

Respondent

Procedural Posture

Urgent Application / Return Day of Rule Nisi; Final Determination of Interdict and Costs

Legal Issues

  1. 1 Whether the respondent breached the restraint of trade clause by accepting employment with a former client of the applicant.
  2. 2 Whether the restraint of trade clause in the employment contract covers employment by a former customer.
  3. 3 Whether the respondent disclosed confidential information of the applicant to the new employer.

Ratio Decidendi

The court found that the restraint of trade clause in the respondent's employment contract did not expressly prohibit employment with a former customer, but rather targeted activities such as soliciting, dealing with, or supplying services as an alternative provider. The respondent's employment with Civcon, while resulting in a reduction of the applicant's business, did not amount to a breach of the restraint clause on a plain reading of its terms. The applicant failed to establish that the clause was intended to cover such employment, and the evidence did not support a finding of disclosure of confidential information. Accordingly, the respondent was not in breach of the restraint, and...

Court Disposition

Application dismissed; rule nisi discharged; costs awarded against applicant.

Orders

  • The rule issued on 23 July 2009 and subsequently extended until 26 January 2010 is discharged.
  • The applicant is ordered to pay the respondent's costs of opposing the application and of opposing the contempt application.