SAB: prove you can afford to lose

EL firm accuses brewer of trying to duck lawsuit.

SOUTH African Breweries on Wednesday asked the Pretoria High Court to compel an East London company to prove that it can afford to fight the brewer in an intellectual property case relating to the popular Carling Black Label Be The Coach soccer competition.

East London businessman and director of Boost Sports Africa Jed Webber said in an answering affidavit that SAB was using underhand tactics to drown the company in legal fees and duck the intellectual property lawsuit.

SAB wants Boost Sports to cough up R1-million to show it can afford to pay the brewer’s legal costs should it lose the lawsuit it initiated in 2011.

Carling Black Label Be The Coach campaign invites fans of popular soccer clubs Kaizer Chiefs and Orlando Pirates to pick players for a soccer match via an SMS competition.

Two lucky fans of both clubs get to walk away with R1-million each.

In the answering affidavit Webber said SAB was delaying and denying justice to the company in which he, Mkhuseli Mnguni, boxing promoter Mzi’s son, Justin Price and Andrew Stylianou are all shareholders.

Webber said SAB could not defend itself in the matter and was using its deep pockets to avoid embarrassment and subdue his company.

But SAB spokeswoman Robyn Chalmers said they wanted start-up company Boost Sports Africa to prove it could afford to pay for the fight.

“Boost Sports has never traded as a company and as a result SAB has approached the courts to request that the company be ordered to put up security for any costs should the company lose its claim in the courts.

“Only after this ruling is given can the trial proceed.

“We are confident of the merits of our case.”

SAB is a subsidiary of global beer giant SAB Miller, a London stock exchange listed company which in the last financial year reported $34-billion (R345.8-billion) in revenue and profit before tax of $7.4-billion (R75.25-billion).

In its interim results for the six month period to September 2013, SAB reported R17.9-billion in revenue.

Judgement in the preliminary case heard in the North Gauteng High Court was reserved on Wednesday.

Webber said: “SAB knows we can’t afford to pay the surety they are asking for subsidise our own legal team’s costs. They are trying to shut us down financially and effectively prevent SAB from having the case heard at trial.”

The case was scheduled to start on Monday after SAB failed to have it thrown out of court last year on the grounds that it was “vexatious, frivolous and without merit”.

The brewers filed the application for surety in August.

In the affidavit, Webber questioned why SAB had waited almost a year before filing the application for surety.

“ is concerned that it is at serious risk of a finding that it unlawfully misappropriated the plaintiff’s confidential information and commercialised it for its own profit.” —

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