Rawlins and Another v Caravantruck (Pty) Ltd. (256/91) [1992] ZASCA 204; 1993 (1) SA 537 (AD); [1993] 1 All SA 389 (A) (24 November 1992)

Rawlins and Another v Caravantruck (Pty) Ltd. (256/91) [1992] ZASCA 204; 1993 (1) SA 537 (AD); [1993] 1 All SA 389 (A) (24 November 1992)

The court held that Rawlins failed to discharge the onus of proving that the restraint of trade clause was unreasonable or that the respondent lacked a proprietary interest in its trade connections. Although Rawlins claimed his customer contacts predated his employment, the court found that his employment with the respondent allowed him to consolidate and strengthen those relationships, thereby creating or enhancing customer goodwill that was protectable by the respondent. The restraint was limited in area and, while two years was close to the upper limit of reasonableness, it was not unfair given the circumstances. The application against Curnow failed because no delictual cause of...

Citation
[1992] ZASCA 204
Parties
Appellant: Neville Richard Rawlins; Appellant: Curnow M & G Limited; Respondent: Caravantruck (Pty) Limited
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
24 November 1992
Case Number
256/91
Procedural Posture
Civil Appeal / Appeal Against Grant of Interdict Enforcing Restraint of Trade
Outcome
Rawlins' appeal is dismissed with costs; Curnow's appeal succeeds and the respondent is ordered to pay 15% of Curnow's costs in both courts.
Judges
Hoexter, Nestadt, Kumleben, Nienaber, Howie
Legal Topics
Restraint of Trade, Enforceability of Contracts, Proprietary Interest, Customer Connections, Interdict, Unreasonableness of Restraint
Commercial and Corporate Civil Procedure Restraint of Trade Enforceability of Contracts Proprietary Interest Customer Connections Interdict Unreasonableness of Restraint

Case Brief

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Parties

Neville Richard Rawlins

Appellant

Curnow M & G Limited

Appellant

Caravantruck (Pty) Limited

Respondent

Procedural Posture

Civil Appeal / Appeal Against Grant of Interdict Enforcing Restraint of Trade

Legal Issues

  1. 1 Whether the restraint of trade clause in the employment contract is enforceable against Rawlins.
  2. 2 Whether the respondent has a proprietary interest in its trade connections requiring protection.
  3. 3 Whether the duration and area of the restraint are reasonable.

Ratio Decidendi

The court held that Rawlins failed to discharge the onus of proving that the restraint of trade clause was unreasonable or that the respondent lacked a proprietary interest in its trade connections. Although Rawlins claimed his customer contacts predated his employment, the court found that his employment with the respondent allowed him to consolidate and strengthen those relationships, thereby creating or enhancing customer goodwill that was protectable by the respondent. The restraint was limited in area and, while two years was close to the upper limit of reasonableness, it was not unfair given the circumstances. The application against Curnow failed because no delictual cause of...

Court Disposition

Rawlins' appeal is dismissed with costs; Curnow's appeal succeeds and the respondent is ordered to pay 15% of Curnow's costs in both courts.

Orders

  • The appeal of Rawlins (the first appellant) is dismissed with costs.
  • The appeal of Curnow (the second appellant) succeeds. The respondent is to pay Curnow 15% of its costs of appeal.