Global Network Systems (Pty) Ltd v Mack (JR1514/09) [2010] ZALCJHB 14 (28 June 2010)

Global Network Systems (Pty) Ltd v Mack (JR1514/09) [2010] ZALCJHB 14 (28 June 2010)

The court found that the restraint of trade clause in the respondent's employment contract did not expressly prohibit employment by a former customer, but rather targeted activities such as soliciting custom, dealing with, or supplying services independently. The wording of clause 16.1 did not extend to employment relationships with a customer, and to interpret it otherwise would unduly strain its meaning. Although the respondent's activities as an employee of Civcon were in competition with the applicant's interests, the applicant failed to establish that the restraint was intended to cover such employment. The court also found no evidence that the respondent disclosed confidential...

Citation
[2010] ZALCJHB 14
Parties
Applicant: Global Network Systems (Pty) Ltd; Respondent: Mack, Thomas Rober James
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
28 June 2010
Case Number
JR1514/09
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, Confidential Information, Employment Contract Interpretation
Labour Law Commercial and Corporate Restraint of Trade Confidential Information Employment Contract Interpretation

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 customer of the applicant.
  2. 2 Whether the restraint clause in the employment contract covers employment by a customer as opposed to soliciting or supplying services independently.
  3. 3 Whether the respondent disclosed confidential information of the applicant to Civcon.

Ratio Decidendi

The court found that the restraint of trade clause in the respondent's employment contract did not expressly prohibit employment by a former customer, but rather targeted activities such as soliciting custom, dealing with, or supplying services independently. The wording of clause 16.1 did not extend to employment relationships with a customer, and to interpret it otherwise would unduly strain its meaning. Although the respondent's activities as an employee of Civcon were in competition with the applicant's interests, the applicant failed to establish that the restraint was intended to cover such employment. The court also found no evidence that the respondent disclosed confidential...

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.