Samantha Riley’s company sued over bankrupt swimming school

FORMER swimming champion Samantha Riley’s company is being sued for nearly $2.5 million over a Brisbane swimming school carrying her name.

Samantha Riley outside Brisbane Supreme Court yesterday. Picture: John Gass/AAP

FORMER swimming champion Sam Riley is embroiled in a $2.34 million lawsuit over the sale of a Brisbane swimming school carrying her name.

The three-time Olympic medallist’s company, Sam Riley Promotions (SRP), is accused of breaching an agreement to train the owner and staff of a company which bought the business in September 2014 and to “assist’’ him for six months.

The buyer, Alex Brown of Summer Swim, alleges SRP is liable for the loss of the school in Capalaba in Brisbane’s southeast, which went bust in January 2015, four months after he bought it for $210,000 plus about $300,000 in debt.

The Supreme Court in Brisbane yesterday heard Summer Swim claims that had its staff been trained then they would have been able to open the business – which traded as Capalaba Swim Stars – in the January when Brown was in hospital suffering from meningitis.

The firm also alleges that one of its most senior staffers quit her job two months after Brown took over the school and went to work for SRP and its partner in another similar business.

It says her resignation “was encouraged or counselled by” Ms Riley’s company – a claim which is denied by SRP.

SRP’s lawyers told yesterday’s hearing that it gave “no promise” not to solicit Mr Brown’s staff.

Samantha Riley outside Brisbane Supreme Court yesterday. Picture: John Gass/AAP

Mr Brown’s lawyer yesterday told the court he has no significant assets and will go broke if he loses the lawsuit.

Justice David Jackson yesterday dismissed a bid by Ms Riley’s firm to block the lawsuit by seeking $40,000 security for costs.

But the judge was critical of Summer Swim’s $2.34 million claim, saying: “On any view this is an unsustainable claim for damages. Even if the plaintiff’s claim is successful, it is nothing like a claim for $2.34 million.”

He said the maths was wrong and pointed out that Summer Swim was asking to be compensated for loss of profits of $127,000 a year through to January 2030, when the lease on the centre runs out.

The court heard that Sam Riley’s Swim Schools co-owner David Noonan asked Mr Brown shortly after he bought the business when Mr Brown would like him to do the training.

Mr Brown allegedly replied that “it would be a few weeks before the dust settles” and asked to defer the training.

Mr Noonan claims that he had further discussions with Mr Brown about training and Mr Brown didn’t insist, a claim Mr Brown disputes.

Shortly afterwards Mr Brown contracted meningitis and was hospitalised, and the swim school closed for Christmas in mid-December and did not reopen as planned in mid-January 2015.

The case returns to court next year.

Riley is being sued by Alex Brown (front left). Picture: John Gass/AAP