Sam Riley’s swimming school will defend lawsuit over sold business

OLYMPIC medallist Sam Riley’s business is set to defend claims it poached clients and customers from a rival in a Supreme Court trial, after mediation of the $1.4 million lawsuit failed.

Sam Riley swim school opening at North Lakes Picture Chris Higgins

OLYMPIC medallist Sam Riley’s swimming school is set to defend claims it poached clients and customers from a rival business, in a Supreme Court trial after mediation of the $1.4 million “far-fetched and fanciful” lawsuit failed.

The three-time Olympic medallist’s company, Sam Riley Promotions (SRP), is accused of breaching a contract with the new owner of her Capalaba swim school by “encouraging customers” to “switch” to the Sam Riley swim school in nearby Manly.

SRP, co-owned with David Noonan, is also accused of “encouraging or counselling” key staffer Hayley Meerten to resign from “Capalaba Swim Stars” and go to work at SRP’s rival Manly school just two months after it was sold to Alex Brown’s company Summer Swim Pty Ltd (SS).

SS argues that without Ms Meerten and another key staffer – who resigned on January 2, 2015 – Mr Brown was unable to trade from January 12, 2015.

SS also accuses SRP of failing to train staff on how to operate the business and to “assist” Mr Brown for six months.

SRP alleges it did not train staff because Mr Brown told Mr Noonan in December 2014 that he “did not require any assistance”.

SS is suing SRP for $1,421,290 plus interest of $214 a day, claiming SRP is liable for the loss of the entire value of the Capalaba business which went bust in January 2015, four months after Mr Brown bought it for $210,000.

The $1.4 million figure includes profits allegedly lost for the next 15 years, at $127,000 a year, according to the statement of claim filed in court on March 19.

SS claims SRP agreed “not to solicit or encourage customers from Sam Riley Capalaba to leave the Capalaba pool or switch to any other Sam Riley Swim School” as part of the sale.

SPR denies all the claims, and is countersuing for $60,000, in overdue rent it says it paid for SS. SRP alleges that the real reason SS “collapsed and did not reopen for trade” in 2015 was because Mr Brown was “incapable of properly managing the business” when he contracted meningitis and was in hospital from November 2014 until January 2015, defence documents state.

Mr Brown denies those claims and says the inability of the business to reopen in January 2015 was caused by SRP’s failure to train his staff.

After court-ordered mediation failed, the case was set down for a four-day hearing in the Supreme Court in Brisbane starting on March 4.