The corporate based by Instagram health tycoon Kayla Itsines has continued its combat in opposition to a former worker in court, arguing the rising influencer’s rival train app may price it as much as $1m in misplaced income.
The Bikini Physique Coaching Firm, based by Ms Itsines, is attempting to dam Queensland crossfit guru and Instagram star Cass Olholm from launching her new health app, Practice With Cass, set to go on sale on the Apple App Retailer from Thursday.
The corporate, represented within the South Australian Supreme Court by Nicholas Swan, on Tuesday mentioned Ms Olholm, who labored as a contractor for Ms Itsines earlier than leaving in February this 12 months, had breached restraint of commerce by getting ready her new enterprise.
Bikini Physique needs 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 enterprise can proceed.
At a listening to final week, Choose Dart beneficial the 2 events pursue mediation to keep away from spending “very massive sums of cash” on lawyers, however the two influencers failed to succeed in a settlement and returned once more on Tuesday to battle it out on the court, with doubtlessly tens of millions of {dollars} hanging within the steadiness.
Mr Swan argued Ms Olholm had doubtlessly pulled customized from the Sweat app, studying out plenty of feedback left on her Instagram celebrating the proposed launch of her new enterprise.
“‘The time couldn’t be extra good for me, my Sweat subscription ends in October, so excited on your app’,” Mr Swan mentioned studying out one reader’s submit.
Kayla Itsines on set with Physique+Soul.
He additionally argued Ms Olholm’s “enticing power”, or the goodwill she possessed and which Bikini Physique had paid her for, shouldn’t be used to construct up a rival enterprise inside the 12-month restraint clause.
“The principle query on this case, as we see it, is whether or not till February subsequent 12 months is an affordable time,” he mentioned.
“That’s the core level. In our respectful submission, 12 months, within the context of the historical past of this matter, within the context of the character of the enterprise, within the context of what’s concerned, is eminently affordable.”
Mr Macfarlane mentioned it was unreasonable for the corporate to attempt to restrain Ms Olholm’s goodwill, one thing he mentioned 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’s being sought to be enforced in opposition to my client is a restraint upon my client utilizing her personal expertise and expertise,” he mentioned.
“Utilizing these expertise and expertise in areas in health and coaching, she has obtained {qualifications} for that, in competitors with the applicant’s product.”
He mentioned there was no allegation Ms Olholm had accessed confidential firm info, together with client lists, or that she had used confidential info to develop her personal enterprise.
The court heard Bikini Physique feared Ms Olholm’s transfer into the app market may trigger them losses of as much as $1m from subscribers shifting from Sweat over to Practice With Cass.
Mr Macfarlane disputed the determine and mentioned any identifiable loss to Bikini Physique could be “minimal” and “nowhere close to the determine of $1m”.
Ms Itsines bought Sweat to NZ firm IFit in 2021 for a reported $400m.
The court heard Bikini Physique boasts annual revenues of about $65m.
The 2 influencers had been shut collaborators within the health house, with Ms Olholm often showing in Ms Itsines’ Fb movies after she joined the corporate in 2020.
The Practice With Cass program, if it goes forward subsequent week, will likely be billed at $21.99 a month or $139.99 a 12 months.
The court heard Ms Olholm had spent some $580,000 getting ready the brand new enterprise.
Mr Swan needs the court to order an injunction blocking Ms Olholm from launching her new enterprise till the contract’s 12 month restraint of commerce clause expires.
Mr Macfarlane needs the court to dismiss Bikini Physique’s software.
Choose Jack Costello mentioned he would ship his ruling on Thursday at 2.15pm.
