Rlwa (Pty) Ltd v Mc Duling (56595/2019) [2019] ZAGPPHC 422 (11 September 2019)

Rlwa (Pty) Ltd v Mc Duling (56595/2019) [2019] ZAGPPHC 422 (11 September 2019)

The court found that the non-compete agreement was not incorporated by reference into the employment contract, as the reference was vague and did not clearly indicate that its terms formed part of the agreement. Even if it had been incorporated, the restraint clause was unreasonable and contrary to public interest, rendering it unenforceable. The alleged trade secrets and confidential information were not shown to be secret or unique, as much of the information was publicly available or commonly used in the industry. The respondent did not take or memorize customer lists, nor did he engage in conduct amounting to unlawful competition. The applicant failed to provide evidence of actual...

Citation
[2019] ZAGPPHC 422
Parties
Applicant: RLWA (Pty) Ltd; Respondent: Tyrone Mc Duling
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
11 September 2019
Case Number
56595/2019
Procedural Posture
Urgent Application / First Instance
Outcome
Application dismissed with costs.
Judges
JJC Swanepoel
Legal Topics
Restraint of Trade, Unlawful Competition, Confidential Information, Incorporation by Reference
Commercial and Corporate Civil Procedure Restraint of Trade Unlawful Competition Confidential Information Incorporation by Reference

Case Brief

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Parties

RLWA (Pty) Ltd

Applicant

Tyrone Mc Duling

Respondent

Procedural Posture

Urgent Application / First Instance

Legal Issues

  1. 1 Whether the non-compete agreement was incorporated by reference into the employment contract.
  2. 2 Whether the restraint of trade clause is enforceable under South African law.
  3. 3 Whether the respondent is unlawfully competing with the applicant by using confidential information or trade secrets.

Ratio Decidendi

The court found that the non-compete agreement was not incorporated by reference into the employment contract, as the reference was vague and did not clearly indicate that its terms formed part of the agreement. Even if it had been incorporated, the restraint clause was unreasonable and contrary to public interest, rendering it unenforceable. The alleged trade secrets and confidential information were not shown to be secret or unique, as much of the information was publicly available or commonly used in the industry. The respondent did not take or memorize customer lists, nor did he engage in conduct amounting to unlawful competition. The applicant failed to provide evidence of actual...

Court Disposition

Application dismissed with costs.

Orders

  • The application is dismissed with costs.