South Africa Case Law

Sadan and Another v Workforce Staffing (Pty) Ltd - Appeal (JA38/23; JA88/23)

Sadan and Another v Workforce Staffing (Pty) Ltd - Appeal (JA38/23; JA88/23) [2023] ZALAC 18 (17 August 2023)

Court

Labour Appeal Court

Case number

JA38/23; JA88/23

Judges

Waglay, Davis, Smith

The Labour Appeal Court held that the restraint of trade agreements, properly construed, applied throughout South Africa, given the appellants' national responsibilities and access to confidential information and client relationships. However, the two-year duration was found to be manifestly unreasonable and disproportionate, as it would prevent the appellants from plying their trade anywhere in the country for an excessive period without compelling justification from the respondent. The Court determined that a one-year restraint would sufficiently protect the respondent's proprietary interes…

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• Restraint Of Trade
• Enforceability Of Contracts
• Constitutional Right To Trade
• Public Policy
• Contractual Interpretation

Sadan and Another v Workforce Staffing (Pty) Ltd (JA38/23; JA39/23)

Sadan and Another v Workforce Staffing (Pty) Ltd (JA38/23; JA39/23) [2023] ZALAC 23; - (17 August 2023)

Court

Labour Appeal Court

Case number

JA38/23; JA39/23

Judges

Waglay, Davis, Smith

The Labour Appeal Court held that the restraint of trade agreements, properly interpreted, apply throughout the Republic of South Africa, given the appellants' national responsibilities and access to confidential information and client relationships across the country. However, the respondent failed to provide compelling justification for the two-year duration of the restraint, which was found to be manifestly onerous and disproportionate, especially as it prevented the appellants from plying their trade anywhere in the country. The Court found that a one-year restraint would sufficiently pro…

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• Restraint Of Trade
• Enforceability Of Contracts
• Constitutional Right To Trade
• Public Policy
• Contractual Interpretation

Correia Spares CC t/a Omega Motor Spares v Croucamp (760/2021)

Correia Spares CC t/a Omega Motor Spares v Croucamp (760/2021) [2021] ZAFSHC 99 (3 May 2021)

Court

Free State High Court, Bloemfontein

Case number

760/2021

Judge

Daffue

High Court dismissed an employer’s application to enforce a restraint of trade against a former manager, finding the clause vague, overbroad, and contrary to public policy.

• Restraint Of Trade
• Employment Contract
• Unlawful Competition
• Public Policy
• Constitutional Right To Trade
• Restraint-of-trade

Annex Distribution (Pty) Ltd and Others v Bank of Baroda (52590/2017)

Annex Distribution (Pty) Ltd and Others v Bank of Baroda (52590/2017) [2018] ZAGPPHC 6 (12 March 2018)

Court

North Gauteng High Court, Pretoria

Case number

52590/2017

Judge

N Mavundla

The court dismissed an urgent bid to stop Bank of Baroda from closing its South African banking operations and found no contempt of the earlier order.

• Interim Interdict
• Banker Customer Relationship
• Contractual Termination
• Contempt Of Court
• Constitutional Right To Trade
• Balance Of Convenience

Montego Pet Nutrition (Pty) Ltd v Bouwer and Another (16575/15)

Montego Pet Nutrition (Pty) Ltd v Bouwer and Another (16575/15) [2016] ZAGPPHC 791 (1 September 2016)

Court

North Gauteng High Court, Pretoria

Case number

16575/15

Judge

N V Khumalo

The High Court dismissed an application to enforce a broad restraint of trade against a former marketing employee, finding no protectable interest and unreasonable scope.

• Restraint Of Trade
• Protectable Interest
• Confidential Information
• Customer Connections
• Constitutional Right To Trade
• Restraint-of-trade

Nazo v Free State Gambling & Liquor Authority and Another; In re: Jacobs v Free State Gambling & Liquor Authority and Another (2386/2015)

Nazo v Free State Gambling & Liquor Authority and Another; In re: Jacobs v Free State Gambling & Liquor Authority and Another (2386/2015) [2015] ZAFSHC 227 (19 November 2015)

Court

Free State High Court, Bloemfontein

Case number

2386/2015

Judge

Daffue

The court found that the Free State Gambling & Liquor Authority and its Chairperson failed to comply with their statutory obligation to consider the applicants' liquor registration applications within a reasonable time. The Authority is required by the Free State Gambling and Liquor Act to request and obtain necessary reports from the municipality and SAPS; this duty cannot be shifted to the applicants. The delay of nearly a year, despite all requirements being met and no objections lodged, constitutes unreasonable administrative action and violates the applicants' constitutional right to fre…

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• Mandamus
• Failure To Take Decision
• Promotion Of Administrative Justice Act
• Liquor Licensing
• Constitutional Right To Trade

Reddy v Siemens Telecommunications (Pty) Ltd (251/06)

Reddy v Siemens Telecommunications (Pty) Ltd (251/06) [2006] ZASCA 135; 2007 (2) SA 486 (SCA); (2007) 28 ILJ 317 (SCA) (30 November 2006)

Court

Supreme Court of Appeal

Case number

251/06

Judges

Howie, Navsa, Nugent, Combrinck, Malan

The Supreme Court of Appeal held that the restraint of trade agreement was reasonable and enforceable. Reddy possessed confidential information and trade secrets of Siemens, and his employment with a direct competitor created an objectively assessable risk of disclosure, whether intentional or inadvertent. The restraint was limited in duration (twelve months) and geographic scope (Gauteng), and did not prevent Reddy from being economically active or from using his own skills and abilities. The court found that public policy and constitutional values support the enforcement of freely entered c…

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• Restraint Of Trade
• Enforceability Of Contracts
• Constitutional Right To Trade
• Confidential Information
• Final Interdict

B P Southern Africa (Pty) Ltd v Twoline Trading 87 (Pty) Ltd t/a Sheffield service Station (14140/02)

B P Southern Africa (Pty) Ltd v Twoline Trading 87 (Pty) Ltd t/a Sheffield service Station (14140/02) [2002] ZAGPHC 24 (30 August 2002)

Court

High Courts - Gauteng

Case number

14140/02

Judge

Willis

The court found that the wording of clause 27.1 in the principal lease agreement was not obviously erroneous and that there were material disputes of fact regarding the parties' intention. Rectification could not be granted in motion proceedings where such disputes exist, and the respondent's cancellation of the lease was valid under the clause as drafted. Regarding the servitudal clause, the court held that although it was registered and constituted a real right, its effect was to restrain the respondent from trading and would render it economically inactive, which was unconscionable and con…

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• Lease Rectification
• Personal Servitude
• Restraint Of Trade
• Constitutional Right To Trade