Grobbelaar and Others v Shoprite Checkers Ltd (710/2008) [2011] ZASCA 11 (11 March 2011)

Grobbelaar and Others v Shoprite Checkers Ltd (710/2008) [2011] ZASCA 11 (11 March 2011)

The Supreme Court of Appeal held that the rights under the restraint of trade agreements were validly transferred to the plaintiff as part of the sale of SCEB's business, either by tacit cession upon the plaintiff taking possession and conducting the business or by written cession. The court found that the defendants breached their restraint undertakings by planning, funding, and establishing BEC, a competing buying organisation, and by encouraging members to resign from Sentra and Megasave. The evidence established that these breaches were a cause of the resignations and the resulting loss to the plaintiff. The defendants acted in concert to achieve this outcome and are jointly liable...

Citation
[2011] ZASCA 11
Parties
Appellant: Louis Johannes Jacobus Grobbelaar; Appellant: Daniel Johannes Monk Heyns; Appellant: Petrus Crous Welgemoed; Respondent: Shoprite Checkers Limited
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
11 March 2011
Case Number
710/2008
Procedural Posture
Civil Appeal / Appeal From Western Cape High Court (cape Town), First Instance
Outcome
Appeal dismissed with costs, including the costs of two counsel.
Judges
Brand, Nugent, Lewis, Malan, Majiedt
Legal Topics
Restraint of Trade, Cession of Contractual Rights, Sale of Business as Going Concern, Damages for Breach of Contract, Causation, Joint Wrongdoers
Commercial and Corporate Civil Procedure Restraint of Trade Cession of Contractual Rights Sale of Business as Going Concern Damages for Breach of Contract Causation Joint Wrongdoers

Case Brief

Summary, issues, holding and outcome

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Parties

Louis Johannes Jacobus Grobbelaar

Appellant

Daniel Johannes Monk Heyns

Appellant

Petrus Crous Welgemoed

Appellant

Shoprite Checkers Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From Western Cape High Court (cape Town), First Instance

Legal Issues

  1. 1 Whether the rights arising from restraint of trade agreements were validly transferred to the plaintiff prior to the alleged breaches.
  2. 2 Whether the defendants breached their restraint of trade undertakings by establishing and funding a competing buying organisation.
  3. 3 Whether the breaches caused the resignation of members from Sentra and Megasave, resulting in damages to the plaintiff.

Ratio Decidendi

The Supreme Court of Appeal held that the rights under the restraint of trade agreements were validly transferred to the plaintiff as part of the sale of SCEB's business, either by tacit cession upon the plaintiff taking possession and conducting the business or by written cession. The court found that the defendants breached their restraint undertakings by planning, funding, and establishing BEC, a competing buying organisation, and by encouraging members to resign from Sentra and Megasave. The evidence established that these breaches were a cause of the resignations and the resulting loss to the plaintiff. The defendants acted in concert to achieve this outcome and are jointly liable...

Court Disposition

Appeal dismissed with costs, including the costs of two counsel.

Orders

  • The appeal is dismissed with costs, including the costs of two counsel.