Izikhathi Security (Pty) Ltd v Zaayman and Another (1919/2017) [2017] ZAECPEHC 36 (18 July 2017)

Izikhathi Security (Pty) Ltd v Zaayman and Another (1919/2017) [2017] ZAECPEHC 36 (18 July 2017)

The court found that the applicant failed to prove the respondents possessed or used confidential information or trade secrets belonging to the applicant. The information allegedly used by the respondents was either in the public domain or of general application in the security industry. The first respondent's longstanding relationships with clients and his reputation, developed over years of employment, were not unlawful to leverage after resignation. There was no restraint of trade agreement in place. The court held that the respondents' conduct constituted legitimate competition and not unlawful competition. The application for an interdict was therefore dismissed.

Citation
[2017] ZAECPEHC 36
Parties
Applicant: Izikhathi Security (Pty) Ltd; Respondent: Johannes Stephanus Zaayman; Respondent: Orazone (Pty) Ltd t/a Propsec
Court
Eastern Cape High Court, Port Elizabeth
Jurisdiction
South Africa
Judgment Date
18 July 2017
Case Number
1919/2017
Procedural Posture
Urgent Application / Application for Final Interdict
Outcome
Application dismissed with costs.
Judges
NG Beshe
Legal Topics
Unlawful Competition, Confidential Information, Restraint of Trade, Final Interdict
Commercial and Corporate Civil Procedure Unlawful Competition Confidential Information Restraint of Trade Final Interdict

Case Brief

Summary, issues, holding and outcome

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Parties

Izikhathi Security (Pty) Ltd

Applicant

Johannes Stephanus Zaayman

Respondent

Orazone (Pty) Ltd t/a Propsec

Respondent

Procedural Posture

Urgent Application / Application for Final Interdict

Legal Issues

  1. 1 Whether the respondents' conduct amounts to unlawful competition against the applicant.
  2. 2 Whether the respondents used confidential information obtained during employment to solicit applicant's clients and employees.
  3. 3 Whether the absence of a restraint of trade agreement affects the lawfulness of the respondents' conduct.

Ratio Decidendi

The court found that the applicant failed to prove the respondents possessed or used confidential information or trade secrets belonging to the applicant. The information allegedly used by the respondents was either in the public domain or of general application in the security industry. The first respondent's longstanding relationships with clients and his reputation, developed over years of employment, were not unlawful to leverage after resignation. There was no restraint of trade agreement in place. The court held that the respondents' conduct constituted legitimate competition and not unlawful competition. The application for an interdict was therefore dismissed.

Court Disposition

Application dismissed with costs.

Orders

  • The application is dismissed with costs.