Pepkor Rentail Ltd v Caleni and Another (14585/2010) [2010] ZAWCHC 200 (6 September 2010)

Pepkor Rentail Ltd v Caleni and Another (14585/2010) [2010] ZAWCHC 200 (6 September 2010)

The court found that the restraint of trade agreement was reasonable and enforceable. The first respondent held a senior position, had access to confidential and proprietary information, and voluntarily signed the restraint agreement with full appreciation of its consequences. The restraint was limited to six months...

Source-derived case information.

Citation
[2010] ZAWCHC 200
Parties
Applicant: Pepkor Retail Limited; Respondent: Nwabisa Caleni; Respondent: Woolworths (Pty) Ltd
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Case Number
14585/2010
Procedural Posture
Urgent Application / Final Judgment
Outcome
Application granted. The restraint of trade agreement is enforced and the first respondent is interdicted from employment with a competitor and from soliciting business from suppliers for six months. Costs awarded to the applicant.
Judges
Samela
Legal Topics
Restraint of Trade, Confidential Information, Final Interdict, Enforceability of Contracts
Commercial and Corporate Civil Procedure Restraint of Trade Confidential Information Final Interdict Enforceability of Contracts

Source-derived case record

Summary, issues, holding and outcome

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Parties

Pepkor Retail Limited

Applicant

Nwabisa Caleni

Respondent

Woolworths (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Final Judgment

  1. 1 Whether the restraint of trade agreement entered into between the applicant and first respondent is reasonable and enforceable.
  2. 2 Whether the applicant is entitled to an interdict restraining the first respondent from employment with a competitor and from soliciting business from suppliers.

Ratio Decidendi

The court found that the restraint of trade agreement was reasonable and enforceable. The first respondent held a senior position, had access to confidential and proprietary information, and voluntarily signed the restraint agreement with full appreciation of its consequences. The restraint was limited to six months and covered the entire Republic, which was reasonable given the applicant's business scope. The applicant established a clear right to protect its proprietary interests, and there was a real likelihood of harm if the first respondent used confidential information in her new employment. The respondent's tender to repay the consideration did not negate the enforceability of the...

Court Disposition

Application granted. The restraint of trade agreement is enforced and the first respondent is interdicted from employment with a competitor and from soliciting business from suppliers for six months. Costs awarded to the applicant.

Orders

  • The first respondent shall terminate her employment as a buyer with Woolworths on 20 September 2010 and is interdicted from being engaged, retained, employed, interested or involved, financially or otherwise, in or with a competitor of Ackermans or any other entity involved in clothing retail, wholesale and/or...
  • The first respondent is interdicted for six months from 21 September 2010 from providing any services identical or similar to those performed for Ackermans to or on behalf of any competitor of Ackermans which was such a competitor or entity during the twelve months prior to 30 June 2010.