What are my options if a health club has failed to provide services that I pre-paid for?

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What are my options if a health club has failed to provide services that I pre-paid for?

I belong to a health club, which provides a pool, whirlpool, sauna, and the usual work-out equipment. They also provide showers, soap, and towels. In the 7 months that I’ve been a member, the pool was out 3 times (a week at a time), the whirlpool was out 3 times for several days, the sauna was out for 6 weeks, and there were at least 6 days when there were no towels. I made the mistake of prepaying for a year. I’ve asked for a credit – their reply: “We don’t provide credit for minor inconveneinces”. I don’t think these are “minor inconveniences”. Do I have legal grounds to demand some credit?

Asked on October 6, 2010 under Business Law, Arizona

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 14 years ago | Contributor

You could try to sue them under one of two related grounds (see below), but you need to ask yourself if it's worth it, given the cost (monetary and time) of legal action.

1)  IF the health club knew at the time they sold you the membership that they were having trouble and would not or could not fix the probles (e.g. they had no intention of correcting major plumbing issues), that might be sufficient fraud to justify terminating the contract--but it would require a knowing intent to deceive.

2) You may be able to state a claim for breach of contract, on the grounds that you contracted to receive a membership with certain amenities, which are not being provided. The problem though is that breach of contract does not always provide grounds to terminate a contract; if the breach is not "material"--or critical--the remedy is often some monetary compensation, as in the form of the difference in value betweent the contract as intended and the contract with the breach. If say, you're paying $60 a month (just to pick a number) for the membership, and gym without sauna, pool, etc. would b worth $40 a month, you'd therefore potentially be able to recover $20 a month, which is not really worth it.

The problem is, if the gym doesn't want to compensate you or let you out of the membership, it may take legal action to vindicate your rights.


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