Mam Trailers (Pty) Ltd and Another v Waldri Trailers (Pty) Ltd and Others (UM193/22) [2023] ZANWHC 61 (25 May 2023)

Mam Trailers (Pty) Ltd and Another v Waldri Trailers (Pty) Ltd and Others (UM193/22) [2023] ZANWHC 61 (25 May 2023)

The court found that the restraint of trade clause in the sale agreement was only enforceable against the first respondent, who was the seller. The second respondent was not a party to the agreement, and the applicants did not apply to pierce the corporate veil or provide evidence that the first respondent was using the third respondent to circumvent the restraint. The third respondent was not bound by the agreement as it was not a party thereto. The applicants failed to establish a clear right or breach by any respondent that would justify the granting of a final interdict. Consequently, the application was dismissed, and costs were awarded against the applicants, including costs...

Citation
[2023] ZANWHC 61
Parties
Applicant: Mam Trailers (Pty) Ltd; Applicant: Annube (Pty) Ltd; Respondent: Waldri Trailers (Pty) Ltd; Respondent: Waldo van den Berg; Respondent: Pacific Trailers (Pty) Ltd
Court
North West High Court, Mafikeng
Jurisdiction
South Africa
Judgment Date
25 May 2023
Case Number
UM193/22
Procedural Posture
Urgent Application / Final Interdict Application
Outcome
Application dismissed with costs, including reserved costs from the Gauteng Division of the High Court in Pretoria.
Judges
J T Djaje
Legal Topics
Restraint of Trade, Sale of Business, Piercing Corporate Veil, Final Interdict
Commercial and Corporate Civil Procedure Restraint of Trade Sale of Business Piercing Corporate Veil Final Interdict

Case Brief

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Parties

Mam Trailers (Pty) Ltd

Applicant

Annube (Pty) Ltd

Applicant

Waldri Trailers (Pty) Ltd

Respondent

Waldo van den Berg

Respondent

Pacific Trailers (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Final Interdict Application

Legal Issues

  1. 1 Whether the restraint of trade clause in the sale agreement is enforceable against the second and third respondents.
  2. 2 Whether the applicants established a clear right and breach justifying a final interdict.
  3. 3 Whether the applicants made out a case to pierce the corporate veil to hold the second respondent liable.

Ratio Decidendi

The court found that the restraint of trade clause in the sale agreement was only enforceable against the first respondent, who was the seller. The second respondent was not a party to the agreement, and the applicants did not apply to pierce the corporate veil or provide evidence that the first respondent was using the third respondent to circumvent the restraint. The third respondent was not bound by the agreement as it was not a party thereto. The applicants failed to establish a clear right or breach by any respondent that would justify the granting of a final interdict. Consequently, the application was dismissed, and costs were awarded against the applicants, including costs...

Court Disposition

Application dismissed with costs, including reserved costs from the Gauteng Division of the High Court in Pretoria.

Orders

  • The application is dismissed.
  • The applicants are ordered to pay the costs of the application, including the costs reserved by the Gauteng Division of the High Court in Pretoria on 27 September 2022.