South Africa Case Law

Sentinel International Advisory Services Proprietary Limited v Mulder (2025/022896)

Sentinel International Advisory Services Proprietary Limited v Mulder (2025/022896) [2025] ZALCCT 28 (2 May 2025)

Court

Labour Court Cape Town

Case number

2025/022896

Judge

R Lagrange

The court found that Mulder's employment by Bedrock, a direct competitor, constituted a breach of her restraint of trade and confidentiality obligations. Sentinel demonstrated a protectible interest in preserving confidential client information and business relationships, which Mulder had access to during her employment. The risk that such information could be used to benefit Bedrock was sufficient to justify enforcement of the restraint. The restraint was limited in duration and geography, making it reasonable and not unduly restrictive of Mulder's right to work. No public policy considerati…

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• Restraint Of Trade
• Confidential Information
• Enforceability Of Contracts
• Fiduciary Services
• Breach Of Contract

Haralambos Prokas N O and Others v Zoviflo (Pty) Ltd (61/2024)

Haralambos Prokas N O and Others v Zoviflo (Pty) Ltd (61/2024) [2025] ZASCA 18 (13 March 2025)

Court

Supreme Court of Appeal

Case number

61/2024

Judges

Meyer, Matojane, Koen, Bloem, Modiba

The SCA held that a nominee shareholders agreement could not stand alone where it was inextricably linked to an uncompleted joint venture agreement.

• Joint Venture Agreement
• Contract Formation
• Nominee Shareholders Agreement
• Offer And Acceptance
• Enforceability Of Contracts
• Revocation Of Offer

Rand Air South Africa Proprietary Limited v Jager and Others (125713/24)

Rand Air South Africa Proprietary Limited v Jager and Others (125713/24) [2024] ZALCJHB 533 (24 December 2024)

Court

Labour Court Johannesburg

Case number

125713/24

Judge

Baloyi

The Labour Court enforced a 24-month restraint against a former Rand Air employee, finding access to confidential information and trade connections and granting a final interdict.

• Restraint Of Trade
• Confidential Information
• Enforceability Of Contracts
• Final Interdict
• Mutual Separation Agreement
• Restraint-of-trade

Waco Africa (Pty) Ltd v Ahmed and Others (2024/109219)

Waco Africa (Pty) Ltd v Ahmed and Others (2024/109219) [2024] ZALCJHB 505 (11 December 2024)

Court

Labour Court Johannesburg

Case number

2024/109219

Judge

Prinsloo

The court found that the applicant and Battalions are direct competitors and that the respondent, Mr Ahmed, had longstanding customer connections and access to confidential information during his employment with the applicant. The respondent's undertakings did not adequately protect the applicant's interests, as his continued employment with a competitor posed a real risk of exploitation of customer relationships and disclosure of confidential information. The court held that the restraint of trade agreement was valid, reasonable, and enforceable, but that the restraint period should run from…

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• Restraint Of Trade
• Confidential Information
• Customer Connections
• Specific Performance
• Enforceability Of Contracts

Bujini Projects (Pty) Ltd v Jadoonandon (2022/4054)

Bujini Projects (Pty) Ltd v Jadoonandon (2022/4054) [2024] ZAGPJHC 1268 (10 December 2024)

Court

South Gauteng High Court, Johannesburg

Case number

2022/4054

Judge

Lucas van Tonder

The High Court dismissed an application to interdict a former employee under a restraint of trade, finding material disputes of fact and an overbroad, unsupported restraint.

• Restraint Of Trade
• Final Interdict
• Enforceability Of Contracts
• Dispute Of Fact
• Punitive Costs
• Restraint-of-trade

Altron Nexus (Pty) Ltd v Fowler and Another (2024/112022)

Altron Nexus (Pty) Ltd v Fowler and Another (2024/112022) [2024] ZALCJHB 507 (6 December 2024)

Court

Labour Court Johannesburg

Case number

2024/112022

Judge

M Makhura

The Labour Court dismissed Altron Nexus’s bid to enforce a 12-month restraint against a sales representative, finding selective non-enforcement made enforcement unreasonable.

• Restraint Of Trade
• Enforceability Of Contracts
• Confidential Information
• Customer Connections
• Restraint-of-trade
• Confidential-information

Bearing Man Group (Pty) Ltd v Herholdt and Another (C2024-116445)

Bearing Man Group (Pty) Ltd v Herholdt and Another (C2024-116445) [2024] ZALCCT 54 (15 November 2024)

Court

Labour Court Cape Town

Case number

C2024-116445

Judge

Lagrange

The court found that while the applicant did not have a uniquely defined client base, it possessed confidential information regarding recent customer interactions that warranted protection. Herholdt's knowledge of these interactions, gained during her employment with the applicant, could be exploited by the second respondent, a direct competitor. However, the restraint as drafted was overly broad given the shared client pool and Herholdt's prior employment with both firms. The court determined that partial enforcement of the restraint was justified, restricting Herholdt from engaging with the…

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• Restraint Of Trade
• Confidential Information
• Enforceability Of Contracts
• Employee Mobility

SGS South Africa (Pty) Limited v Pillay and Another (D388/2024)

SGS South Africa (Pty) Limited v Pillay and Another (D388/2024) [2024] ZALCD 36 (25 September 2024)

Court

Labour Court Durban

Case number

D388/2024

Judge

Allen-Yaman

The court found that while Mr Pillay possessed some confidential information regarding negotiated or discounted prices for SGS services, the particularity and consequential effect of this information were not established. There was insufficient evidence to demonstrate harm to SGS if Mr Pillay disclosed such information. The court determined that SGS did not prove a protectable interest sufficient to justify enforcement of the restraint. Furthermore, the restraint would unreasonably prevent Mr Pillay from remaining economically active in his field, outweighing SGS's interests. The application…

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• Restraint Of Trade
• Confidential Information
• Client Relationships
• Enforceability Of Contracts

Interwaste (Pty) Limited v Pretorius and Another (C306/2024)

Interwaste (Pty) Limited v Pretorius and Another (C306/2024) [2024] ZALCCT 40 (17 September 2024)

Court

Labour Court Cape Town

Case number

C306/2024

Judge

R Lagrange

The court found that Interwaste and Averda are competitors in the waste management industry, including medical waste services, and that Pretorius's employment with Averda breached the restraint of trade agreement. Pretorius had access to confidential information and customer relationships that could be exploited by Averda to Interwaste's detriment. The court held that Interwaste had a protectible interest in safeguarding its business information and customer connections, and that interest was threatened by Pretorius's new role. The restraint was found to be reasonable in scope and duration, l…

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• Restraint Of Trade
• Confidential Information
• Enforceability Of Contracts
• Protectible Interest

Khari Investments (Pty) Ltd v Mopani District Municipality (5424/2018)

Khari Investments (Pty) Ltd v Mopani District Municipality (5424/2018) [2024] ZALMPPHC 86 (12 August 2024)

Court

Limpopo High Court, Polokwane

Case number

5424/2018

Judge

Bresler

The High Court held that an oral municipal services agreement was unenforceable because section 116 of the MFMA requires such contracts to be in writing.

• Municipal Finance Management Act
• Supply Chain Management Policy
• Irregular Expenditure
• Enforceability Of Contracts
• Legality
• Oral Agreement