Longfields Trading CC v Bradfiled and Another (10605/2011) [2011] ZAKZDHC 51 (23 November 2011)

Longfields Trading CC v Bradfiled and Another (10605/2011) [2011] ZAKZDHC 51 (23 November 2011)

The court found that the applicant had protectable interests in the form of customer connections and confidential information, which were threatened by the first respondent's employment with the second respondent. The restraint of trade agreement was valid and enforceable, but the original three-year period was excessive given the nature of the business and the age of the first respondent. A six-month restraint was deemed reasonable to allow the applicant to re-establish customer relationships. The technical objections regarding pre-incorporation contracts and section 197 of the Labour Relations Act were dismissed, as the contract was a stipulatio alteri and the first respondent was fully...

Citation
[2011] ZAKZDHC 51
Parties
Applicant: Longfields Trading CC; Respondent: Sherryl Gayle Bradfield; Respondent: Naked Solutions 001 t/a Headwear 24 Global Manufacturers
Court
Kwazulu-Natal High Court, Durban
Jurisdiction
South Africa
Judgment Date
23 November 2011
Case Number
10605/2011
Procedural Posture
Urgent Application / Final Determination After Interim Relief and Full Argument
Outcome
Interdict granted against the first respondent for six months; application against the second respondent dismissed.
Judges
Seegobin
Legal Topics
Restraint of Trade, Enforceability of Contracts, Unlawful Competition, Confidential Information, Customer Connections
Commercial and Corporate Delict Restraint of Trade Enforceability of Contracts Unlawful Competition Confidential Information Customer Connections

Case Brief

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Parties

Longfields Trading CC

Applicant

Sherryl Gayle Bradfield

Respondent

Naked Solutions 001 t/a Headwear 24 Global Manufacturers

Respondent

Procedural Posture

Urgent Application / Final Determination After Interim Relief and Full Argument

Legal Issues

  1. 1 Whether the restraint of trade agreement signed by the first respondent is enforceable against her.
  2. 2 Whether the applicant has protectable interests justifying the restraint.
  3. 3 Whether the restraint period of three years is reasonable.

Ratio Decidendi

The court found that the applicant had protectable interests in the form of customer connections and confidential information, which were threatened by the first respondent's employment with the second respondent. The restraint of trade agreement was valid and enforceable, but the original three-year period was excessive given the nature of the business and the age of the first respondent. A six-month restraint was deemed reasonable to allow the applicant to re-establish customer relationships. The technical objections regarding pre-incorporation contracts and section 197 of the Labour Relations Act were dismissed, as the contract was a stipulatio alteri and the first respondent was fully...

Court Disposition

Interdict granted against the first respondent for six months; application against the second respondent dismissed.

Orders

  • The first respondent is interdicted and restrained, for six months from 24 August 2011 to 24 February 2012, from engaging in any business competing with the applicant within South Africa.
  • The first respondent is interdicted and restrained, for six months, from canvassing or influencing any customer of the applicant to take its custom elsewhere or to purchase goods or services from another entity, including the second respondent.