Leora Finestein started working in Fitness Universe Limited (ÃÂFULÃÂ) a privately owned health and fitness facility in 1985. Leora was initially hired as an independent contractor. The contract signed by Leora and FUL was that Leora would be paid a set hourly rate by FUL, who would match Leora with their clients to work as a trainer. Leora paid her own remittances. Leora was to supply her own hand tools. The gym/fitness facilities were of course provided by FUL and Leora was restricted from working with the clients provided to her by FUL at any other fitness facility (i.e. competition to FUL). The contract could be terminated upon 30 days notice provided by either party to the other.
Leora became quite popular with FULÃÂs clients and by 1988 she was working exclusively for FUL, Monday to Friday from 8:30 am to 5:00 pm. FUL advertised Leora as their full time, available trainer, who could be reached during these hours at their downtown facilities.
FUL treats Leora as employee. Leora was consulted on any office and staff changes and even on the layout of equipment at the FUL facilities.
On September 30th, 2005, Max Schiller, the owner of FUL sold FUL to MenÃÂs Place: A Fitness Facility (ÃÂMPÃÂ). FUL received $2,000,000 for the transfer of all of its assets, including equipment, trade names, patents, client lists, receivables and goodwill. MP did not purchase shares from FUL nor did MP acquire any debts or liabilities except for any liability owing on the premises or furnishings of the FUL facilities. Leora was the only trainer hired by MP at the same rates and on the same terms as she was working for FUL after takeover.
Mr. Smith runs the day to day operations of MP. MP specifically targets younger,