Restraint of trade clauses restrict an employee or seller from competing after leaving the business. Magna Alloys v Ellis (1984) set the test: restraints are enforceable if reasonable - protecting a legitimate proprietary interest (customer connections, confidential information, trade secrets) without being overly broad in scope, area, or duration. The party seeking to escape the restraint bears the onus of showing it is unreasonable.
When to hire a restraint of trade attorney
- You have signed a restraint and are leaving to join a competitor.
- A former employee has taken your clients or confidential information.
- You are selling a business and need a restraint clause drafted.
- You are facing urgent interdict proceedings to enforce a restraint.
- You want to challenge a restraint as unreasonable.
What to expect
Restraint disputes typically move urgently through the High Court via interdict applications. The court considers the reasonableness factors case-by-case: protected interest, scope, geographic area, duration, public interest. Courts routinely 'read down' overly broad restraints to what is reasonable rather than striking them entirely.
Typical fees
Urgent High Court interdict: R80,000-R300,000. Defending a restraint: R60,000-R250,000. Drafting restraints in employment or sale agreements: R3,500-R15,000.
Verified attorneys
391 attorneys found
Unathi Charmaine Dlamini
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John Graham Hunter
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Charne Du Preez (Du Toit)
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Janine Bridget Julies
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Talia Filipa Simpson
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Sofia Kavallieratos
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Katherine Anne Gascoigne (Bewsey)
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Shanell Shanay Chetty
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John Michael Judin
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Johannes Erasmus Esterhuizen
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Anastasha Pasquali Truter
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Ndishavhelafhi Godoni
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Mikhail Packery
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Hugo Ian Johnston
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Paula Deborah Conway (Haynes)
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Matthew Andrew Kerr-Phillips
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Victor Wilkens
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Zoleka Lefa Moholo
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Sive Dukada
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Sonwabile Matilose
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Abel Daniel Schoeman
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Avril Albert Pagel
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