John Holdsworth says he will re-open his mobile company, AppChat, giving South Africa a\u00a0mobile network it deserves.<\/p>\n
Holdsworth told BusinessTech on Friday (28 June) that he was forced to liquidate his start-up venture due to the vast amounts of capital it had consumed amid an ongoing legal dispute with listed ICT firm Reunert.<\/p>\n
\u201cIt is good legal strategy for a large company with to\u00a0out-spend, out-litigate and exhaust the resources of a small company or private individual,” he said.<\/p>\n
The company’s founder intends to file numerous legal claims against Reunert during the course of the week, which would also include a trip to the Public Protector.<\/p>\n
Reunert originally brought an application in March 2012, in which it sought to enforce a contractual restraint of trade against Holdsworth and obtain interdicts preventing him and AppChat from ever competing against it.<\/p>\n
The case was founded on an allegation by Reunert that AppChat was intending to directly compete with a mobile VoIP application that Nashua ECN were developing and had planned to launch imminently.<\/p>\n
Holdsworth was the founder and CEO of ECN (Nashua), a provider of IP-based next generation network services. He sold that business to Reunert in July 2011.<\/p>\n
He denied Reunert\u2019s allegations, claiming that ECN had never traded in the mobile market and that its entire business was in the fixed line market.<\/p>\n
Holdsworth was granted leave to appeal following a ruling delivered in the Supreme Court of Appeal in Bloemfontein on 25 January.<\/p>\n
Under current court orders, AppChat is under restraint of trade until September 2014.<\/p>\n
Holdsworth said he knew what he was getting into when he decided not to roll over at the start of the litigation and fight back. \u201cI am not complaining, you have to play to your strengths and Reunert\u2019s is clearly financial\u201d.<\/p>\n
The entrepreneur said he\u00a0had no choice but to liquidate AppChat in the circumstances. “I did not have the resources to fight Reunert legally and run AppChat.”<\/p>\n
Holdsworth said that with the company having to close its doors, \u201cthe real tragedy is that 15 people (AppChat employees) are out on the street and haven\u2019t found jobs\u201d.<\/p>\n
However, Holdsworth told BusinessTech that he has evidence that will provide his company with a reprieve.<\/p>\n
\u201cOnce I have won this case and I inevitably will, I will re-launch AppChat and South Africa will get the mobile network that it deserves.\u00a0 Reunert\u2019s only prospect of victory is to drag matters out in the hope that I fail to stay the course and run out of money \u2013 that won\u2019t happen.\u201d<\/p>\n
\u201cIn the meantime I will be filing a number of applications in the high court highlighting Reunert\u2019s conduct and seeking relief. I will also be filing a complaint with the Public Protector and the appropriate parliamentary portfolio committees\u201d.<\/p>\n
“For now I am in the most brutal of legal fights you can imagine. I will win this, I will restart AppChat,” he said.<\/p>\n
In an email to BusinessTech on Monday, Holsdworth elaborated on the reasons why he was forced to close AppChat.<\/p>\n
\u201cIt is good legal strategy for a large company to out-spend, out-litigate and exhaust the resources of a small company or private individual.<\/p>\n
\u201cHowever this strategy took on a whole new meaning, when I won leave to appeal from the Supreme Court of Appeal.\u00a0 After four successive defeats in the high court, I think they (Reunert) thought I was dead and buried. They panicked having previously indemnified both AppChat and I in the event that my appeal succeeded for any damages as a result of having to cease business\u201d.<\/p>\n
\u201cAt that point the gloves came off and they crossed a \u2018red line\u2019,\u201d Holdsworth said which has led him to lay criminal charges against Reunert and its legal representative.<\/p>\n
\u201cIt is important for the public to understand that none of this legal stuff has got anything to do with Nashua ECN.\u00a0 Reunert\u2019s primary objective was to stop me from competing against Nashua Mobile their flagship mobile service provider.\u201d<\/p><\/blockquote>\n
\u00a0More on AppChat<\/h3>\n
I was forced into AppChat liquidation: Holdsworth<\/a><\/strong><\/p>\n
I have \u201csmoking gun\u201d evidence: Holdsworth<\/strong><\/a><\/p>\n
Reunert hits back at AppChat<\/strong><\/a><\/p>\n
Reunert has committed fraud: Holdsworth<\/strong><\/a><\/p>\n
Holdsworth ready to sacrifice all in Reunert battle<\/strong><\/a><\/p>\n
AppChat\u2019s Holdsworth: \u201cCowboys don\u2019t cry\u201d<\/strong><\/a><\/p>\n