Medshield Medical Scheme and Another v Alumni Trading 264 (Pty) Ltd and Others (86425/2014) [2017] ZAGPPHC 977 (15 December 2017)

Medshield Medical Scheme and Another v Alumni Trading 264 (Pty) Ltd and Others (86425/2014) [2017] ZAGPPHC 977 (15 December 2017)

The court found that Alumni Trading 264 (Pty) Ltd was not entitled to register the Medshield trademark, as the Scheme and its associated companies had prior use and legal protection under the Trade Marks Act. The agreement for sale and assignment of the trademark was concluded by Langa beyond the scope of his authority as curator and was not in the interest of the Scheme or its beneficiaries. The Scheme had no need to acquire the trademark, and the payment of R10 million was unjustified. The agreement was set aside as it contravened section 4 of the Financial Institutions (Protection of Funds) Act. The court rejected the respondent's argument that the Scheme had waived its rights by...

Citation
[2017] ZAGPPHC 977
Parties
Applicant: Medshield Medical Scheme; Applicant: Tebogo Phaleng N.O.; Respondent: Alumni Trading 264 (Pty) Ltd; Respondent: Themba Benedict Langa; Respondent: Acting Registrar of Medical Schemes; Respondent: Monwabisi Sabatha Macdonald Gantsho; Respondent: Master of the High Court, Pretoria; Respondent: Registrar of Trademarks
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
15 December 2017
Case Number
86425/2014
Procedural Posture
Review Application / Judgment
Outcome
Application granted. The agreement of sale and assignment is set aside and the first respondent is ordered to repay R10 million to the first applicant.
Judges
M Senyatsi
Legal Topics
Trade Mark Assignment, Fiduciary Duties, Curatorship Powers, Contract Invalidity, Waiver of Rights, Prior Use Protection
Commercial and Corporate Civil Procedure Intellectual Property Trade Mark Assignment Fiduciary Duties Curatorship Powers Contract Invalidity Waiver of Rights +1 more

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Parties

Medshield Medical Scheme

Applicant

Tebogo Phaleng N.O.

Applicant

Alumni Trading 264 (Pty) Ltd

Respondent

Themba Benedict Langa

Respondent

Acting Registrar of Medical Schemes

Respondent

Monwabisi Sabatha Macdonald Gantsho

Respondent

Master of the High Court, Pretoria

Respondent

Registrar of Trademarks

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether Alumni Trading 264 (Pty) Ltd had a bona fide interest in and entitlement to register the Medshield trademark.
  2. 2 Whether the Scheme had any need for the trademark.
  3. 3 Whether the sale agreement was actuated by fraud or bad faith.

Ratio Decidendi

The court found that Alumni Trading 264 (Pty) Ltd was not entitled to register the Medshield trademark, as the Scheme and its associated companies had prior use and legal protection under the Trade Marks Act. The agreement for sale and assignment of the trademark was concluded by Langa beyond the scope of his authority as curator and was not in the interest of the Scheme or its beneficiaries. The Scheme had no need to acquire the trademark, and the payment of R10 million was unjustified. The agreement was set aside as it contravened section 4 of the Financial Institutions (Protection of Funds) Act. The court rejected the respondent's argument that the Scheme had waived its rights by...

Court Disposition

Application granted. The agreement of sale and assignment is set aside and the first respondent is ordered to repay R10 million to the first applicant.

Orders

  • The agreement of sale and assignment concluded between the first applicant and the first respondent on or about 17 October 2013 did not come into force and is hereby set aside.
  • The first respondent is ordered to pay R10 000 000,00 to the first applicant.