Country Club Agrees to $2 Million Settlement With Former Members
The settlement compensates members who joined the New Jersey National Golf Club from 2003 to 2013 and paid hefty up-front fees to join.
January 03, 2019 at 05:39 PM
4 minute read
A state court judge has approved a $2 million class action settlement against an upscale golf club by former members who claimed they were stiffed on refunds when they resigned.
The settlement compensates members who joined New Jersey National Golf Club in Basking Ridge from 2003 to 2013 and paid hefty up-front fees to join. Those owners felt they were treated unfairly when the declining popularity of golf prompted the club owners to quit imposing the fees on new members.
In Crema v. New Jersey National Golf Club, members who paid $25,000 or more to join the club signed contracts requiring any fees to be refunded using revenue generated by new memberships. But the suit claimed departing members were shortchanged because the club undercounted its members and revenue.
Yolanda Ciccone, assignment judge for Somerset, Hunterdon and Warren counties, granted final approval to a settlement granting payments equal to 61.5 percent of the refunds owed to 217 class members and four class representatives. The 84 members who joined between 2003 and 2013 and remain as members get their choice of a lump-sum payment of 61.5 percent of the refund they are owed or a credit equal to 110 percent of their refund if they apply it to club membership dues over the next five years.
The settlement also provides $455,250 in fees and expenses of $2,214 to counsel for plaintiffs and the class, Robert Dowd Jr. of Ridgefield Park and Gary Graifman of Kantrowitz Goldhamer & Graifman in Montvale.
The suit brought claims against the club and its owners and managers under the New Jersey Consumer Fraud Act.
The suit claimed club management undercounted the number of active, dues-paying members for purposes of calculating its liability to members who resign. The club was obligated to compensate former members at a greater rate if current membership exceeded 350 people, but it did not count all such members, the lawsuit claimed.
The suit also claimed that the club's suspension of membership fees was a breach of contracts signed by existing members who joined from 2003 to 2013.
Plaintiff lawyer Dowd filed the class action in January 2018. Earlier, he filed a suit against the same club by one former member, Carl Lizza. Following a jury trial in Morris County in June 2017, Lizza received a judgment for $116,694. When the club filed an appeal, the parties settled for a confidential amount.
But the outcome of the Lizza case “had a salutory effect” on the class action, Dowd said.
The settlement is “an especially good deal for the former members, many of whom have retired, many of whom have moved away,” Dowd said. “Because most of the [refundable portion of the] deposits are in the neighborhood of $10,000 to $12,000, it's very difficult for individual members to have an effective remedy to get a refund” by filing individual suits.
Clark Alpert of Weiner Law Group in Parsippany, who represented the club, called the settlement “an extremely good deal” for his client. Alpert said the club owners had to move away from their former business model relying on large deposits by new members because of a declining interest in a country club lifestyle. In the past, members might have spent an entire weekend at the club and taken all their meals there, but nowadays members spend less time at the club. He said the club owners had to make “an injection of capital” to the club in light of the settlement.
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
© 2024 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 AllMeet the Judges: Senate Confirms 7 Superior Court Nominees in Final 2024 Session
3 minute readTrending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
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