How Do You Want It (Pty) Ltd t/a Dreadlocks Studio One v Matyumza and Others (1147/2016) [2016] ZAECELLC 7 (27 September 2016)

How Do You Want It (Pty) Ltd t/a Dreadlocks Studio One v Matyumza and Others (1147/2016) [2016] ZAECELLC 7 (27 September 2016)

The court found that the applicant had established the existence of service agreements containing a restraint of trade clause, and that the respondents had breached these agreements by soliciting clients and competing in East London. The respondents failed to meaningfully dispute the essential allegations, either denying knowledge or failing to file confirmatory affidavits. The court held that the application was urgent due to ongoing harm and that disputes of fact were not material. The restraint of trade clause was enforceable, as the respondents did not prove it was unreasonable or contrary to public policy. The lack of specified remuneration did not invalidate the agreements, as...

Citation
[2016] ZAECELLC 7
Parties
Applicant: How Do You Want It (Pty) Ltd t/a Dreadlocks Studio One; Respondent: Thandile Matyumza; Respondent: Ziyanda Matyumza; Respondent: Zizipho Mgqolozana; Respondent: Zama Mthethwa; Respondent: Buhle Maphasa; Respondent: Sphamandla Nkohla; Respondent: Bhekisisa Mjoli
Court
Eastern Cape High Court, East London Local Court
Jurisdiction
South Africa
Judgment Date
27 September 2016
Case Number
1147/2016
Procedural Posture
Urgent Application / First Instance Judgment
Outcome
Application granted in respect of East London; interdict and restraint of trade enforced against all respondents for specified periods; costs awarded against respondents.
Judges
Mbenenge
Legal Topics
Restraint of Trade, Enforcement of Contracts, Interdict, Jurisdiction, Urgency, Employment Contracts
Commercial and Corporate Civil Procedure Restraint of Trade Enforcement of Contracts Interdict Jurisdiction Urgency Employment Contracts

Case Brief

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Parties

How Do You Want It (Pty) Ltd t/a Dreadlocks Studio One

Applicant

Thandile Matyumza

Respondent

Ziyanda Matyumza

Respondent

Zizipho Mgqolozana

Respondent

Zama Mthethwa

Respondent

Buhle Maphasa

Respondent

Sphamandla Nkohla

Respondent

Bhekisisa Mjoli

Respondent

Procedural Posture

Urgent Application / First Instance Judgment

Legal Issues

  1. 1 Whether the respondents are bound by and have breached the restraint of trade clause in their employment agreements.
  2. 2 Whether the application is urgent and suitable for determination on the papers.
  3. 3 Whether the restraint of trade is enforceable in the territories specified in the agreement.

Ratio Decidendi

The court found that the applicant had established the existence of service agreements containing a restraint of trade clause, and that the respondents had breached these agreements by soliciting clients and competing in East London. The respondents failed to meaningfully dispute the essential allegations, either denying knowledge or failing to file confirmatory affidavits. The court held that the application was urgent due to ongoing harm and that disputes of fact were not material. The restraint of trade clause was enforceable, as the respondents did not prove it was unreasonable or contrary to public policy. The lack of specified remuneration did not invalidate the agreements, as...

Court Disposition

Application granted in respect of East London; interdict and restraint of trade enforced against all respondents for specified periods; costs awarded against respondents.

Orders

  • The respondents are interdicted and restrained from soliciting the custom of, dealing with, or transacting in competition with the applicant's clients in East London.
  • The respondents are interdicted from approaching, advising, or contacting, directly or indirectly, any person or entity who was a customer of the applicant during their employment, in East London.