The firm based by Instagram health tycoon Kayla Itsines has continued its struggle in opposition to a former worker in court docket, arguing the rising influencer’s rival train app might price it as much as $1m in misplaced income.
The Bikini Body Training Company, based by Ms Itsines, is making an attempt to dam Queensland crossfit guru and Instagram star Cass Olholm from launching her new health app, Train With Cass, set to go on sale on the Apple App Store from Thursday.
The firm, represented within the South Australian Supreme Court by Nicholas Swan, on Tuesday stated Ms Olholm, who labored as a contractor for Ms Itsines earlier than leaving in February this yr, had breached restraint of commerce by making ready her new business.
Bikini Body desires Ms Olholm to obey a 12-month restraint of commerce clause, which might prohibit her from competing with the corporate till February 2024.
Ms Olholm, represented by Thomas McFarlane, argues the restraint interval expired after six months and her new business can proceed.
At a listening to final week, Judge Dart really useful the 2 events pursue mediation to keep away from spending “very large sums of money” on legal professionals, however the two influencers failed to achieve a settlement and returned once more on Tuesday to battle it out on the court docket, with doubtlessly hundreds of thousands of {dollars} hanging within the steadiness.
Mr Swan argued Ms Olholm had doubtlessly pulled customized from the Sweat app, studying out a variety of feedback left on her Instagram celebrating the proposed launch of her new enterprise.
“‘The time couldn’t be more perfect for me, my Sweat subscription ends in October, so excited for your app’,” Mr Swan stated studying out one reader’s put up.
He additionally argued Ms Olholm’s “attractive force”, or the goodwill she possessed and which Bikini Body had paid her for, shouldn’t be used to construct up a rival business within the 12-month restraint clause.
“The main question in this case, as we see it, is whether until February next year is a reasonable time,” he stated.
“That is the core point. In our respectful submission, 12 months, in the context of the history of this matter, in the context of the nature of the business, in the context of what is involved, is eminently reasonable.”
Mr Macfarlane stated it was unreasonable for the corporate to attempt to restrain Ms Olholm’s goodwill, one thing he stated she had constructed up herself over a number of years, together with years when she was exterior of the corporate, and one thing that was exterior of non-compete protections.
“What is being sought to be enforced against my client is a restraint upon my client using her own skills and experience,” he stated.
“Using those skills and experience in areas in fitness and training, she has got qualifications for that, in competition with the applicant’s product.”
He stated there was no allegation Ms Olholm had accessed confidential firm info, together with consumer lists, or that she had used confidential info to develop her personal business.
The court docket heard Bikini Body feared Ms Olholm’s transfer into the app market might trigger them losses of as much as $1m from subscribers shifting from Sweat over to Train With Cass.
Mr Macfarlane disputed the determine and stated any identifiable loss to Bikini Body could be “minimal” and “nowhere near the figure of $1m”.
Ms Itsines bought Sweat to US firm IFit in 2021 for a reported $400m.
The court docket heard Bikini Body boasts annual revenues of about $65m.
The two influencers have been shut collaborators within the health house, with Ms Olholm commonly showing in Ms Itsines’ Facebook movies after she joined the corporate in 2020.
The Train With Cass program, if it goes forward subsequent week, can be billed at $21.99 a month or $139.99 a yr.
The court docket heard Ms Olholm had spent some $580,000 making ready the brand new business.
Mr Swan desires the court docket to order an injunction blocking Ms Olholm from launching her new business till the contract’s 12 month restraint of commerce clause expires.
Mr Macfarlane desires the court docket to dismiss Bikini Body’s utility.
Judge Jack Costello stated he would ship his ruling on Thursday at 2.15pm.
Source: www.news.com.au
