$100K Punitives Award Against 'Nightmare' CrossFit Gym Reversed
"The court cannot delegate to plaintiffs the ability to trigger the automatic entry or modification of an order," the opinion said. "The trial court erred in delegating this authority to plaintiffs."
April 07, 2020 at 09:07 AM
3 minute read
A state appellate court has reversed an award of $100,000 in punitive damages against a Hoboken CrossFit gym that neighbors said filled the air with loud music, the clanging of dropped weights and obscenities.
The Appellate Division in its April 1 decision in Gianacakos v. Hudson River CrossFit ruled that because no compensatory damages were awarded to the plaintiffs, no punitive damages could be awarded either.
The suit was filed by plaintiffs Richard and Stephanie Gianacakos and Scott Freeman, who lived in the same building as the gym on Clinton Street and claimed the business routinely violated Hoboken's noise ordinance. The suit named the gym, Hudson River CrossFit; John Franklin, its owner; and Ethel Koszeghy, the property's landlord.
"Stephanie Gianacakos testified she was awakened at 5:30 a.m. by vibrations and noise coming from CrossFit. She could hear people screaming obscenities and repetitive thuds caused by dropping dumbbells and throwing medicine balls against the wall," the panel wrote in the per curiam opinion. "She testified the noise was so loud it interfered with her telephone conversations. The noise disturbed her sleep and was having a substantial impact on her life. She described this as 'horrible' and a 'nightmare.' She was offended by the obscenities she could hear coming from CrossFit."
A city employee who investigated noise complaints "testified he was aware there had been 'multiple' complaints about noise at CrossFit," the court noted.
According to the opinion, the case went to mediation, and an agreement was reached to keep the noise down. However, the plaintiffs claimed the defendants later breached the agreement.
The trial court then ordered the gym to cease operations at that location, and barred use of a public sound system there, based on evidence that the building could not properly support the noise, but stayed the order if a gym were operated there without use of certain noisy equipment. The court also denied compensatory damages, for lack of proof of monetary damages sustained by the plaintiffs. It awarded $100,000 in punitive damages, but stayed that, too. But the court issued a "self-executing" order, meaning that if the gym—monitored by the plaintiffs—violated the local noise ordinance again, it would have to close, and the punitive damages award would be entered as a judgment.
On appeal, the defendants argued the trial court abused its discretion by delegating authority of the self-executing order to the plaintiffs and by awarding punitive damages.
The Appellate Division affirmed portions of the lower court's ruling, but reversed the award of punitive damages and entry of the self-executing order.
"The court cannot delegate to plaintiffs the ability to trigger the automatic entry or modification of an order," the opinion said. "It is for the trial court to determine, based on appropriate notice and opportunity to respond, whether an order has been violated or whether there is a need to modify its terms. The trial court erred in delegating this authority to plaintiffs."
As for the punitive damages, the appellate court said, "The trial court did not award compensatory damages. Therefore, there was no authority to award punitive damages."
F.R. Dunne III of Dunne, Dunne & Cohen in Hoboken represents the defendants and did not respond to a request for comment.
Michael Baldassare of Baldasarre & Mara in Newark represents the plaintiffs and also did not respond to a request for comment.
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