Lifetime Memberships May Not Be for Life if Bankruptcy Intervenes
With the proliferation of bankruptcy proceedings for country clubs, golf clubs, health clubs, many "members" who were enticed into what appeared to be attractive packages for so-called lifetime memberships may be sorely dismayed when they learn that an intervening bankruptcy proceeding may wipe out their so-called lifetime membership benefits.
November 24, 2020 at 09:58 AM
4 minute read
Christina Paradowski, Charles M. Tatelbaum, and Brittany L. Hynes of Tripp Scott. With the proliferation of bankruptcy proceedings for country clubs, golf clubs, health clubs, many "members" who were enticed into what appeared to be attractive packages for so-called lifetime memberships may be sorely dismayed when they learn that an intervening bankruptcy proceeding may wipe out their so-called lifetime membership benefits.
In the recent bankruptcy case in Trenton, New Jersey (In re Sea Oaks Country Club, 20-17229 (Bankr. D.N.J. Nov. 10), U.S. Bankruptcy Judge Christine Gravelle set forth a detailed analysis of lifetime memberships in a country club, which should be a wake-up call for anyone thinking of investing large sums in such a membership during these financially difficult times for any type of membership organization.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
Don’t Forget the Owner’s Manual: A Guide to Proving Liability Through Manufacturers’ Warnings and Instructions
5 minute read
Leveraging the Power of Local Chambers of Commerce: A Second-Career Lawyer’s Guide to Building a Thriving Practice
5 minute readTrending Stories
- 1Paul Hastings, Recruiting From Davis Polk, Continues Finance Practice Build
- 2Chancery: Common Stock Worthless in 'Jacobson v. Akademos' and Transaction Was Entirely Fair
- 3'We Neither Like Nor Dislike the Fifth Circuit'
- 4Local Boutique Expands Significantly, Hiring Litigator Who Won $63M Verdict Against City of Miami Commissioner
- 5Senior Associates' Billing Rates See The Biggest Jump
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
