Stratosat Datacom (Pty) Ltd v Vermaak and Another (J583/2018) [2018] ZALCJHB 203 (14 June 2018)

Stratosat Datacom (Pty) Ltd v Vermaak and Another (J583/2018) [2018] ZALCJHB 203 (14 June 2018)

The court found that the restraint of trade agreement entered into in January 2010 remained applicable to Vermaak, notwithstanding his promotion and subsequent commission agreements. The restraint was not limited to his position as general/sales manager but applied to his employment with the applicant generally....

Source-derived case information.

Citation
[2018] ZALCJHB 203
Parties
Applicant: Stratosat Datacom (Pty) Ltd; Respondent: Ignatius Petrus Vermaak; Respondent: Tinsky Connect (Pty) Ltd
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Case Number
J583/2018
Procedural Posture
Urgent Application / Final Determination of Urgent Application for Interdict Enforcing Restraint of Trade
Outcome
Application partially granted: relief granted in respect of confidentiality undertakings; relief refused in respect of broader restraint of trade.
Judges
C Prinsloo
Legal Topics
Restraint of Trade, Confidential Information, Enforceability of Contracts, Interpretation of Contracts
Labour Law Commercial and Corporate Restraint of Trade Confidential Information Enforceability of Contracts Interpretation of Contracts

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Parties

Stratosat Datacom (Pty) Ltd

Applicant

Ignatius Petrus Vermaak

Respondent

Tinsky Connect (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Final Determination of Urgent Application for Interdict Enforcing Restraint of Trade

  1. 1 Whether the restraint of trade agreement entered into in January 2010 remained applicable after subsequent commission agreements and promotion to director.
  2. 2 Whether the restraint of trade agreement covers the conduct alleged by the applicant, including dealings with entities not specified in the restraint.
  3. 3 Whether the respondent breached the restraint of trade and confidentiality undertakings.

Ratio Decidendi

The court found that the restraint of trade agreement entered into in January 2010 remained applicable to Vermaak, notwithstanding his promotion and subsequent commission agreements. The restraint was not limited to his position as general/sales manager but applied to his employment with the applicant generally. However, the restraint in clause 1.4 was limited to specified entities and could not be interpreted to cover all competitors or the broader list of customers and suppliers provided by the applicant. The applicant failed to establish a breach of the restraint undertakings in respect of dealings with entities not specified in the agreement. The confidentiality undertakings, however,...

Court Disposition

Application partially granted: relief granted in respect of confidentiality undertakings; relief refused in respect of broader restraint of trade.

Orders

  • The First Respondent is interdicted and restrained from divulging to any person any of the Applicant’s confidential information.
  • The First Respondent is interdicted and restrained from using any of the Applicant’s confidential information for his own or any other party’s benefit.