Potgieter and Another v Meyer (77243.2015) [2016] ZAGPPHC 533 (4 March 2016)

Potgieter and Another v Meyer (77243.2015) [2016] ZAGPPHC 533 (4 March 2016)

The court found that the restraint of trade clause was validly incorporated into the agreement and reflected the true intention of the parties. The respondent had ample opportunity to read and query the agreement and did not raise any objection to the clause until the answering affidavit, which the court considered an afterthought. The restraint protected the proprietary interests of the applicants, specifically the goodwill and client connections inherent in the hair and beauty industry, where personal relationships are crucial. The respondent's argument that his skills and client relationships were not proprietary to the business was rejected, as the nature of the industry makes such...

Citation
[2016] ZAGPPHC 533
Parties
Applicant: Johannes Arnoldus Potgieter; Applicant: McComb Trading CC t/a Scissors Hands; Respondent: Francois Michael Meyer
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
4 March 2016
Case Number
77243/2015
Procedural Posture
Urgent Application / Final Interdict Application After Initial Urgent Application Was Dismissed as Not Urgent
Outcome
Application granted; restraint of trade clause declared valid and enforceable; respondent interdicted from breaching restraint and ordered to pay costs.
Judges
Makgoka
Legal Topics
Restraint of Trade, Sale of Shares Agreement, Rectification of Contract, Enforceability of Contractual Terms, Solicitation of Employees
Commercial and Corporate Civil Procedure Restraint of Trade Sale of Shares Agreement Rectification of Contract Enforceability of Contractual Terms Solicitation of Employees

Case Brief

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Parties

Johannes Arnoldus Potgieter

Applicant

McComb Trading CC t/a Scissors Hands

Applicant

Francois Michael Meyer

Respondent

Procedural Posture

Urgent Application / Final Interdict Application After Initial Urgent Application Was Dismissed as Not Urgent

Legal Issues

  1. 1 Whether the restraint of trade clause in the sale of shares agreement is valid and enforceable.
  2. 2 Whether the agreement reflects the true intention of the parties regarding the restraint of trade.
  3. 3 Whether the restraint of trade clause protects a proprietary interest worthy of protection.

Ratio Decidendi

The court found that the restraint of trade clause was validly incorporated into the agreement and reflected the true intention of the parties. The respondent had ample opportunity to read and query the agreement and did not raise any objection to the clause until the answering affidavit, which the court considered an afterthought. The restraint protected the proprietary interests of the applicants, specifically the goodwill and client connections inherent in the hair and beauty industry, where personal relationships are crucial. The respondent's argument that his skills and client relationships were not proprietary to the business was rejected, as the nature of the industry makes such...

Court Disposition

Application granted; restraint of trade clause declared valid and enforceable; respondent interdicted from breaching restraint and ordered to pay costs.

Orders

  • It is declared that the restraint of trade clause in the agreement concluded between the first and second applicants and the respondent on 12 March 2015 is valid and enforceable.
  • The respondent is interdicted from having an interest in any hair or beauty salon or business within a radius of fifteen kilometres from the second applicant.