Mustek Ltd v Van Westhuizen and Another (J2262/14) [2014] ZALCJHB 410 (13 October 2014)

Mustek Ltd v Van Westhuizen and Another (J2262/14) [2014] ZALCJHB 410 (13 October 2014)

The court found that the applicant and the second respondent are competitors within the meaning of the restraint agreement, as both are engaged in the distribution and marketing of computer products and related services. The first respondent had access to confidential information and customer connections during his employment with the applicant, and there is a real risk of harm if such information is disclosed or exploited in his new role. The restraint agreement was voluntarily entered into, is limited in duration and scope, and does not prevent the first respondent from working in the industry, only from competing with the applicant. The respondent failed to discharge the onus of...

Citation
[2014] ZALCJHB 410
Parties
Applicant: Mustek Ltd; Respondent: Kuhn Van Westhuizen; Respondent: Axiz (Pty) Ltd t/a AxizWorkgroup
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
13 October 2014
Case Number
J2262/14
Procedural Posture
Urgent Application / Judgment Delivered After Urgent Application Hearing
Outcome
Application granted; restraint of trade enforced against first respondent.
Judges
A Van Niekerk
Legal Topics
Restraint of Trade, Confidential Information, Customer Connection, Enforceability of Contracts
Labour Law Commercial and Corporate Restraint of Trade Confidential Information Customer Connection Enforceability of Contracts

Case Brief

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Parties

Mustek Ltd

Applicant

Kuhn Van Westhuizen

Respondent

Axiz (Pty) Ltd t/a AxizWorkgroup

Respondent

Procedural Posture

Urgent Application / Judgment Delivered After Urgent Application Hearing

Legal Issues

  1. 1 Whether the restraint of trade agreement entered into between the applicant and the first respondent is enforceable.
  2. 2 Whether the first respondent's employment with the second respondent constitutes competitive activity in breach of the restraint.
  3. 3 Whether the applicant has a protectable interest in confidential information and customer connections.

Ratio Decidendi

The court found that the applicant and the second respondent are competitors within the meaning of the restraint agreement, as both are engaged in the distribution and marketing of computer products and related services. The first respondent had access to confidential information and customer connections during his employment with the applicant, and there is a real risk of harm if such information is disclosed or exploited in his new role. The restraint agreement was voluntarily entered into, is limited in duration and scope, and does not prevent the first respondent from working in the industry, only from competing with the applicant. The respondent failed to discharge the onus of...

Court Disposition

Application granted; restraint of trade enforced against first respondent.

Orders

  • The first respondent is interdicted and restrained until 1 September 2015 and anywhere in the Republic of South Africa from engaging in any entity in competition with the applicant.
  • The first respondent is interdicted from soliciting or accepting orders from the applicant's customers, selling or supplying goods or services to them, and from purchasing goods from suppliers or accepting appointments as distributor, licensee, agent or representative of any supplier of the applicant.