Van der Watt and Another v Jonker and Others (837/2010) [2011] ZASCA 140 (23 September 2011)

Van der Watt and Another v Jonker and Others (837/2010) [2011] ZASCA 140 (23 September 2011)

The Supreme Court of Appeal held that Jonker and the Agri group companies had locus standi to enforce the restraint of trade agreement, as Jonker was a party to the contract and had a protectable interest arising from the agreement and the R2 million paid for the separation of businesses. The sale of business as a going concern included goodwill, and the legal consequence is that the seller may not solicit former customers. The evidence showed that Van der Watt solicited Agri group customers in breach of the restraint. The reciprocal nature of the restraint, the consideration paid, and the commercial context rendered the ten-year period reasonable. Mrs van der Watt was also bound by the...

Citation
[2011] ZASCA 140
Parties
Appellant: Gert Jakobus van der Watt; Appellant: Martha Jacoba van der Watt; Respondent: Christiaan Jacobus Jonker; Respondent: Agriwen (Edms) Bpk; Respondent: Agrigen Petroleum (Edms) Bpk; Respondent: Agrigen Diesel Bultfontein (Edms) Bpk
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
23 September 2011
Case Number
837/2010
Procedural Posture
Civil Appeal / Appeal From the Free State High Court, Bloemfontein
Outcome
Appeal dismissed with costs.
Judges
Harms, Lewis, Ponnan, Cachalia, Majiedt
Legal Topics
Restraint of Trade, Sale of Business, Goodwill, Locus Standi, Contract Enforcement
Commercial and Corporate Civil Procedure Restraint of Trade Sale of Business Goodwill Locus Standi Contract Enforcement

Case Brief

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Parties

Gert Jakobus van der Watt

Appellant

Martha Jacoba van der Watt

Appellant

Christiaan Jacobus Jonker

Respondent

Agriwen (Edms) Bpk

Respondent

Agrigen Petroleum (Edms) Bpk

Respondent

Agrigen Diesel Bultfontein (Edms) Bpk

Respondent

Procedural Posture

Civil Appeal / Appeal From the Free State High Court, Bloemfontein

Legal Issues

  1. 1 Whether Jonker and the Agri group companies have locus standi to enforce the restraint of trade agreement.
  2. 2 Whether the restraint of trade agreement is enforceable against the appellants, including Mrs van der Watt.
  3. 3 Whether the sale of business included goodwill and the legal consequences thereof.

Ratio Decidendi

The Supreme Court of Appeal held that Jonker and the Agri group companies had locus standi to enforce the restraint of trade agreement, as Jonker was a party to the contract and had a protectable interest arising from the agreement and the R2 million paid for the separation of businesses. The sale of business as a going concern included goodwill, and the legal consequence is that the seller may not solicit former customers. The evidence showed that Van der Watt solicited Agri group customers in breach of the restraint. The reciprocal nature of the restraint, the consideration paid, and the commercial context rendered the ten-year period reasonable. Mrs van der Watt was also bound by the...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.