75 - When a client list goes walking

When a client list goes walking This episode recounts the 2026 NSW Supreme Court decision Body Sculpting Clinics v Palmer, where clinic manager and part-shareholder Ms Palmer resigned, emailed herself nearly 4,000 client and lead records from the clinic’s Mindbody system, and then worked at a nearby competing business, Defined Aesthetics, alongside former staff, with evidence including emails, forwarded scripts and sales data, and a text describing a “sneaky little marketing tactic.” Host Melissa Bush explains Australian restraints of trade are presumed void unless reasonably necessary to protect legitimate interests, and outlines interlocutory injunction requirements, including the usual undertaking as to damages. The court granted injunctions restraining use of the confidential leads list, client and staff solicitation, and a five-kilometre non-compete, but refused a 15-kilometre restraint due to inconsistency with a five-kilometre franchise deed, delay in suing, potential harm to the new business, and the employer’s weak capacity to meet damages (declining profits and $166,000 tax debt). 00:00 Manager Turns Rival 01:28 Podcast Intro Disclaimer 02:35 Restraint Basics 04:09 Injunctions Explained 05:10 Case Facts Timeline 08:04 Orders Granted 10:29 Why 15km Failed 13:55 Eight Key Lessons 17:12 Final Takeaway Outro Read the case here