South Africa Case Law

Roha SA Ingredients (Pty) Ltd v Gerhardt and Another (J853/2024)

Roha SA Ingredients (Pty) Ltd v Gerhardt and Another (J853/2024) [2024] ZALCJHB 414 (17 October 2024)

Court

Labour Court Johannesburg

Case number

J853/2024

Judge

Myburgh, AJ

The court found that the first respondent breached the restraint by joining Nicola-J, which, although primarily focused on flavours and fragrances, does compete with Roha in the colourant market to a limited extent. However, Roha failed to establish a protectable interest in confidential information or customer connections relevant to the South African market, as the respondent's work at Roha was outside South Africa and the alleged confidential information lacked sufficient particularity and economic value. The respondent's version was accepted under the Plascon-Evans test. Even if a protect…

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• Restraint Of Trade
• Protectable Interest
• Confidential Information
• Trade Connections
• Enforceability Of Restraint
• Balance Of Convenience

Shoprite Checkers (Pty) Ltd v Johnson and Others (C 661/2022)

Shoprite Checkers (Pty) Ltd v Johnson and Others (C 661/2022) [2023] ZALCCT 55; (2023) 44 ILJ 906 (LC) (16 February 2023)

Court

Labour Court Cape Town

Case number

C 661/2022

Judge

Lagrange

The court found that Johnson's employment with OneCart would technically breach the restraint of trade clause in his Shoprite contract, as OneCart's business falls within the ambit of the restraint by virtue of its role as an agent for Shoprite's competitors in the digital marketplace. However, the court held that the confidential information Johnson was exposed to was largely generic, public-facing, or of limited strategic value to OneCart, and did not outweigh his right to take up new employment. The restraint, while breached, was not reasonable to enforce in the circumstances, as the propr…

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• Restraint Of Trade
• Confidential Information
• Employment Contract
• Ecommerce Competition
• Enforceability Of Restraint
• Balance Of Interests

Pam Golding Properties (Pty) Ltd v Neille (26039/17)

Pam Golding Properties (Pty) Ltd v Neille (26039/17) [2017] ZAGPJHC 219 (28 July 2017)

Court

South Gauteng High Court, Johannesburg

Case number

26039/17

Judge

Spilg

The court found that the applicant has a protectable interest in its confidential information and customer connections, including its database of sellers and buyers, which are proprietary assets. The respondent admitted to accessing and contacting clients from this database, constituting a breach of the restraint. However, the court held that the restraint as originally formulated was overbroad in duration, given the nature of the residential property market, the short lifespan of customer connections, and the lack of exclusive mandates. The court limited the restraint to three months, findin…

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• Restraint Of Trade
• Confidential Information
• Customer Connections
• Reasonableness Of Restriction
• Enforceability Of Restraint
• Proprietary Interest

Novozymes South Africa (Pty) Limited v Schenckenberg and Another (J626/17)

Novozymes South Africa (Pty) Limited v Schenckenberg and Another (J626/17) [2017] ZALCJHB 205 (31 May 2017)

Court

Labour Court Johannesburg

Case number

J626/17

Judge

Tlhotlhalemaje

The court found that Novozymes and Danisco are direct competitors in the baking enzyme industry, particularly regarding five key enzyme segments. Schenckenberg, by virtue of his position, had access to confidential information and customer connections, and his new role at Danisco would enable him to exploit these for the benefit of a competitor. The restraint and confidentiality clauses were reasonable in duration and geographic scope, and not intended to stifle competition but to protect legitimate proprietary interests. Schenckenberg failed to demonstrate that the restraint was unreasonable…

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• Restraint Of Trade
• Confidential Information
• Protectable Interest
• Enforceability Of Restraint
• Customer Connections

Old Mutual Life Assurance Company (South Africa (Limited) v Henson (10270/2016)

Old Mutual Life Assurance Company (South Africa (Limited) v Henson (10270/2016) [2016] ZAKZDHC 42 (28 October 2016)

Court

Kwazulu-Natal High Court, Durban

Case number

10270/2016

Judge

Koen

The court found that the applicant has a protectable proprietary interest in its client connections and confidential information acquired during the respondent's employment. The restraint of trade clause is enforceable to the extent that it protects these interests and is limited to clients to whom the respondent rendered financial services. The respondent failed to discharge the onus of proving that the restraint is unreasonable in duration or scope. While the applicant sought a three-year restraint, the court determined that a two-year period is more appropriate, given the lack of evidence…

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• Restraint Of Trade
• Confidential Information
• Employment Contract
• Client Connection
• Enforceability Of Restraint
• Fais Act Compliance

Festo (Pty) Ltd v Wesley and Others (J2126/15)

Festo (Pty) Ltd v Wesley and Others (J2126/15) [2015] ZALCJHB 405 (20 November 2015)

Court

Labour Court Johannesburg

Case number

J2126/15

Judge

Rabkin-Naicker

The Labour Court dismissed Festo’s bid to enforce restraint of trade undertakings against two former sales engineers, finding no sufficient protectable interest and overly broad restraints.

• Restraint Of Trade
• Confidential Information
• Customer Connections
• Enforceability Of Restraint
• Public Policy
• Proprietary Interest

Mpact Operations (Pty) Ltd t/a Mpact Plastics Wadeville v Whitehead and Another (J1335/2015)

Mpact Operations (Pty) Ltd t/a Mpact Plastics Wadeville v Whitehead and Another (J1335/2015) [2015] ZALCJHB 442 (25 September 2015)

Court

Labour Court Johannesburg

Case number

J1335/2015

Judge

AC Basson

The Labour Court enforced a 12-month restraint of trade against a former sales manager, finding protectable confidential information and customer connections.

• Restraint Of Trade
• Confidential Information
• Customer Connections
• Enforceability Of Restraint
• Ostensible Authority
• Restraint-of-trade