South Africa Case Law

B & B Plumbing and Building Supplies (Pty) Ltd v Govender and Others (D12620/2023)

B & B Plumbing and Building Supplies (Pty) Ltd v Govender and Others (D12620/2023) [2023] ZAKZDHC 91 (30 November 2023)

Court

Kwazulu-Natal High Court, Durban

Case number

D12620/2023

Judge

Shapiro AJ

The court found that the restraint of trade clauses in the employment contracts were valid and binding on the first to third respondents. The respondents were aware of the restraints and had previously signed similar covenants. The applicant established protectable interests in its customer connections and confidential information, though not in its supplier relationships. The respondents' conduct in joining a competitor and offering undertakings only in the answering affidavit indicated a lack of good faith. The court held that tailored enforcement of the restraint, prohibiting the responden…

Source excerpt

• Restraint Of Trade
• Enforceability Of Employment Contracts
• Protectable Interests
• Customer Connections
• Confidential Information
• Interdict Relief

JF Hillebrand South Africa (Pty) Ltd v Cutting and Another (C467/2021)

JF Hillebrand South Africa (Pty) Ltd v Cutting and Another (C467/2021) [2021] ZALCCT 67 (17 September 2021)

Court

Labour Court Cape Town

Case number

C467/2021

Judge

Rabkin-Naicker

The Labour Court enforced a one-year restraint of trade against a former logistics employee who joined a direct competitor in the Western Cape.

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

Hillebrand South Africa (Pty) Ltd v Cutting & Another (C467/2021)

Hillebrand South Africa (Pty) Ltd v Cutting & Another (C467/2021) [2021] ZALCCT 101 (16 September 2021)

Court

Labour Court Cape Town

Case number

C467/2021

Judge

Rabkin-Naicker

Labour Court urgent application enforcing a restraint of trade against a former logistics employee who joined a competitor and had customer links and confidential information.

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

Prime Instrumentation CC v Modise (UM263/2020)

Prime Instrumentation CC v Modise (UM263/2020) [2021] ZANWHC 40 (9 April 2021)

Court

North West High Court, Mafikeng

Case number

UM263/2020

Judge

MZ Makoti

The High Court dismissed an urgent application to enforce a restraint of trade, finding the restraint area vague and no protectable confidential interest shown.

• Restraint Of Trade
• Confidential Information
• Employment Contracts
• Protectable Interests
• Restraint-of-trade
• Confidential-information

Laser Junction (Pty) Ltd v Fick (6970/2017)

Laser Junction (Pty) Ltd v Fick (6970/2017) [2017] ZAKZDHC 36; (2017) 38 ILJ 2675 (KZD) (28 September 2017)

Court

Kwazulu-Natal High Court, Durban

Case number

6970/2017

Judge

D Pillay

The court found that the restraint of trade agreement relied upon by the applicant was not transferrable under section 197 of the Labour Relations Act, as it did not constitute a contract of employment and was manifestly unfavourable to the respondent. The evidence established that the respondent signed a new contract of employment with the applicant in 2013, which did not include a restraint clause, and that his subsequent promotion rendered any prior restraint agreement inapplicable. The applicant failed to prove the existence of protectable proprietary interests, such as confidential infor…

Source excerpt

• Restraint Of Trade
• Section 197 Transfer
• Contractual Reasonableness
• Public Policy In Employment
• Protectable Interests
• Constitutional Rights In Employment

Omnirapid Mining and Industrial Supplies (Pty) Ltd v Engelbrecht (J 2312/2013)

Omnirapid Mining and Industrial Supplies (Pty) Ltd v Engelbrecht (J 2312/2013) [2013] ZALCJHB 290 (31 October 2013)

Court

Labour Court Johannesburg

Case number

J 2312/2013

Judge

Rabkin Naicker

Labour Court case on enforcing a restraint of trade: the court dismissed broad interdictory relief but imposed a narrower restraint covering specified major customers.

• Restraint Of Trade
• Enforceability Of Contracts
• Public Policy
• Constitutional Rights
• Protectable Interests
• Restraint-of-trade

EOH Mthombo (Pty) Ltd v Bheekie-Odhav (C177/12)

EOH Mthombo (Pty) Ltd v Bheekie-Odhav (C177/12) [2012] ZALCCT 10 (22 March 2012)

Court

Labour Court Cape Town

Case number

C177/12

Judge

Steenkamp

The applicant failed to establish a clear right to enforce the restraint of trade clause. There was no evidence that the respondent was employed by a client of the applicant, solicited employees, or caused clients to transfer business. The restraint was found to be overbroad, lacking reasonable limitation in area and subject matter, and thus contrary to public policy. The applicant's attempt to narrow the relief was insufficient, as courts are reluctant to trim overbroad restraints at the behest of the drafter. The respondent's constitutional right to freely choose her occupation outweighed t…

Source excerpt

• Restraint Of Trade
• Protectable Interests
• Enforceability Of Contracts
• Public Policy
• Final Interdict