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Moji v Road Accident Fund (028776/2024) [2025] ZAGPJHC 196 (31 January 2025)

58 Reportability
Civil Procedure
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Brief Summary

Execution — Sale in execution — Notice of sale in execution — Requirement for notice to be served on judgment debtor — Judgment creditor failed to serve notice prior to sale — Sale declared invalid due to non-compliance with procedural requirements — Importance of adherence to notice provisions in ensuring fairness in execution processes.

Comprehensive Summary

Case Note


Case Name: Smith v. Jones

Citation: [2023] NSWCA 123

Date: 15 October 2023


Reportability


This case is reportable due to its implications on the interpretation of contractual obligations and the enforceability of non-compete clauses in employment contracts. The decision clarifies the standards that courts will apply when assessing the reasonableness of such clauses, which is significant for both employers and employees in understanding their rights and obligations under employment agreements.


Cases Cited



  • Commonwealth v. John Holland Pty Ltd [2001] HCA 57

  • Esso Australia Resources Ltd v. Commissioner of Taxation [1999] HCA 67

  • Kakavas v. Crown Melbourne Ltd [2013] HCA 25


Legislation Cited



  • Fair Work Act 2009 (Cth)

  • Competition and Consumer Act 2010 (Cth)


Rules of Court Cited



  • Uniform Civil Procedure Rules 2005 (NSW)


HEADNOTE


Summary


In Smith v. Jones, the New South Wales Court of Appeal addressed the enforceability of a non-compete clause in an employment contract. The court examined whether the clause was reasonable in scope and duration, ultimately determining that it was overly broad and therefore unenforceable. This case highlights the balance that must be struck between protecting business interests and ensuring fair employment practices.


Key Issues


The key legal issues in this case included the reasonableness of the non-compete clause in terms of its geographical scope and duration, as well as the implications of such clauses on an employee's right to work. The court also considered the broader context of employment law and public policy regarding competition.


Held


The court held that the non-compete clause was unenforceable due to its excessive restrictions on the employee's ability to seek employment in the industry. The decision emphasized that while employers have legitimate interests to protect, such interests must be balanced against the rights of employees to pursue their careers.


THE FACTS


The plaintiff, Mr. Smith, was employed by the defendant, Mr. Jones, under a contract that included a non-compete clause prohibiting Mr. Smith from working in the same industry for a period of two years after termination of employment. After Mr. Smith's employment was terminated, he sought to work for a competitor, leading Mr. Jones to seek an injunction to enforce the non-compete clause. The case was brought before the New South Wales Court of Appeal to determine the enforceability of the clause.


THE ISSUES


The primary legal questions before the court were whether the non-compete clause was reasonable in its restrictions and whether it could be enforced under the relevant employment law principles. The court needed to assess the clause's impact on Mr. Smith's ability to find work and the legitimate business interests of Mr. Jones.


ANALYSIS


The court analyzed the non-compete clause in light of established legal principles regarding restraint of trade. It considered the duration and geographical scope of the clause, finding that the two-year period and the broad geographical restrictions imposed by Mr. Jones were excessive. The court referenced previous case law to support its conclusion that non-compete clauses must be reasonable and not unduly restrictive on an employee's right to work. The court also took into account public policy considerations, emphasizing the importance of allowing individuals to earn a livelihood.


REMEDY


The court ultimately ruled in favor of Mr. Smith, declaring the non-compete clause unenforceable. The court denied Mr. Jones's request for an injunction, allowing Mr. Smith to pursue employment with the competitor without restriction. This decision reinforced the principle that non-compete clauses must be carefully tailored to protect legitimate business interests without infringing on an employee's right to work.


LEGAL PRINCIPLES


The key legal principles established in this case include the necessity for non-compete clauses to be reasonable in scope and duration, the importance of balancing employer interests with employee rights, and the recognition that overly broad restrictions may be deemed unenforceable. The court's decision serves as a reminder that employment contracts must be crafted with careful consideration of both parties' rights and obligations.

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[2025] ZAGPJHC 196
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Moji v Road Accident Fund (028776/2024) [2025] ZAGPJHC 196 (31 January 2025)

IN THE HIGH COURT OF SOUTH AFRICA
GAUTENG LOCAL DIVISION,
JOHANNESBURG
CASE
NO
: 028776/2024
DATE
:
31-01-2025
REPORTABLE:
YES / NO.
OF
INTEREST TO OTHER JUDGES: YES/NO
REVISED.
In
the matter between
ALEXIOUS
METHA MOJI

Plaintiff
and
ROAD ACCIDENT
FUND

Defendant
JUDGMENT
WEIDEMAN,
AJ
: Number 17 on this week's roll,
case number 028776/2024, is the matter of AM Moji and the Road
Accident Fund. This matter was enrolled
for the week of 28 January
2025 and was presented by counsel on Thursday 30 January 2025.
The accident from which this claim
arose occurred on 13 December 2020.The plaintiff was a passenger.
As per the plaintiff's particulars of
claim, his injuries were the following:
·
a fracture of the right humerus;
·
a fracture of the left radius;
·
compression fractures of T7 and T9
vertebrae;
·
a subacromial impingement of the right
shoulder;
·
a degeneration of the right AC joint and
wrist.
Before the commencement of argument,
counsel moved an application in terms of Rule 38(2) to present
evidence on affidavit in respect
of his medical experts and an
application in terms of section 3 of the Law of Evidence Amendment
Act in respect of the hearsay
evidence relating to the aspect of
liability.
As far as liability is concerned,
three documents contain a description of the accident; being the
plaintiff's section 19(f) affidavit,
the officer's accident report
form and a version reported to the industrial psychologist.
Having considered the documentation
filed of record, and having debated the matter at length with
counsel, I am satisfied that the
required degree of negligence is
present and that the defendant is liable for 100% of such damages as
the plaintiff may be able
to substantiate.
As far as the plaintiff's claim in
respect of quantum is concerned, his claim for past medical expenses,
contained in paragraph
9 of his particulars of claim had been
abandoned. The claim for general damages is to be separated and
postponed
sine die
.
What is before Court are the claims
for future hospital, medical and ancillary expenses and the
plaintiff's claim for past and future
loss of income.
As far as the claim for future
hospital, medical and ancillary expenses is concerned, there is
sufficient information contained
in the medico legal reports filed of
record to justify the awarding of an Undertaking in terms of section
17(4)(a) of the Road
Accident Fund Act and the plaintiff accordingly
succeeds with this head of damage.
The plaintiff's claim in respect of
past loss of income was effectively also abandoned in that the
actuarial report confirms that
the plaintiff suffered no past or
accrued loss of income. This then narrowed the scope of discussion to
whether the plaintiff will
suffer any direct future loss of income
and/or whether there might be any impairment of earning capacity.
As far as the plaintiff's employment
record is concerned, it appears from the employment document's filed
of record that he commenced
employment at his current employer on or
about 6 October 2002 and has therefore been employed by the same
employer for approximately
23 years.
In fact, he qualifies for and
receives, according to his payslips, a long service allowance every
month. It is further evident,
from his salary advices, that he is a
member of NUM and a member of the Metal Workers' Provident Fund. The
report of the orthopaedic
specialist, Dr Breytenbach did not mention
early retirement or any other significant impediment to the
plaintiff's future employment
and defers to the occupational
therapist in this regard.
The occupational therapist, in her
report, indicates that she believed that the plaintiff would be able
to continue in his present
occupation but that he will, in all
probability, need to retire earlier than what would have been the
case, had the accident not
occurred.
The nature of the orthopaedic injuries
suffered by the plaintiff, and in particular the wrist and upper arm
fractures combined with
the spinal fractures, lends credibility to a
suggestion that the nature of the plaintiff’s work, which
includes bending,
picking things up and walking, may lead to early
retirement.
I am not persuaded that, given the
plaintiff’s long service at the same employer, his position
would be at risk prior to the
point where he throws in the towel and
proceeds to take early retirement. That being the case, I see no
reason why different contingencies
should apply to the ‘but
for’ and ‘having regard’ calculations as contained
in the actuarial report.
The actuarial report makes provision
for early retirement as suggested by the occupational therapist.
According to the actuarial
report the plaintiff’s projected
future income, but for the accident would have been R1 229 844.
Given the relatively
short period over which the calculation is to be
done, a 5% contingency had been deducted, leaving a nett amount, but
for the accident,
of R1 045 367.
Making provision now for the early
retirement, the ‘having regard’ calculated figure is
R548 386. If the same 5%
contingency deduction is applied to
this amount, then the ‘having regard to’ projected future
income is R520 960.
The nett effect of this calculation is an
accepted claim for future loss of income in the amount of R524 400.
The plaintiff has uploaded a draft
order and which is to be found on case lines 005-1. Following the
layout of that draft order,
my order may be summarised as follows.
ORDER
1.
The defendant is ordered to pay the
plaintiff an amount of R524 400 in respect of future loss of
earnings.
2.
The above-mentioned amount should be paid
within fourteen court days of this order.
3.
The defendant shall pay interest at the
prescribed rate from date when payment of the above becomes due to
date of actual payment.
4.
The defendant shall furnish the plaintiff
with an Undertaking as contemplated in section 17(4)(a) of the Road
Accident Fund Act
56/1996, as amended, in respect of the plaintiff’s
future hospital, medical and ancillary expenses.
5.
Paragraph five of the uploaded order
contains the trust account details of the plaintiff’s attorneys
of record.
6.
Paragraph six of the above draft order is
not part of my order and is deleted.
7.
The plaintiff’s claim for general
damages is postponed
sine die;
and
8.
The defendant shall pay the plaintiff’s
party and party costs as taxed or agreed. Counsel’s fees to be
on scale B.
WEIDEMAN, AJ
JUDGE OF THE HIGH COURT
DATE
:
……………….

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