Pelunsky & Co v Teron [1913] ZAWLD 9 (11 April 1913)

Master and servant - Improper use of information obtained during service - Breach of good faith - Damages

A servant is not entitled to use information which he gained in his master's employment in any way inconsistent with good faith.

The defendant being employed by the plaintiffs as their bookkeeper and confidential clerk, unknown to his employers, copied a list of the names and addresses of their customers, with the object of using it for the purpose of circularising them after he had left the plaintiff's service and set up a similar business on his own account. Subsequently his service with the plaintiffs having terminated he did so use the list. He also made a copy of his employers' telegraphic code, which he also subsequently used.

Held, that the defendant's conduct was a breach of the good faith which should exist between master and servant, and that the plaintiffs were entitled to damages.