Spitzer Sues To Protect Westchester Health Club Members

Attorney General Spitzer today announced a lawsuit against the operators of a Westchester health club that closed suddenly, leaving consumers with worthless unexpired memberships.

The suit against Wellness & Fitness Center of North Castle, Inc., and its principals David Allen Cass and Lewis Cass, seeks refunds for members of the club, which closed abruptly on October 31, 2002. Prior to closing, the club had signed up an undetermined number of members at fees typically ranging from $150 to $348 apiece.

The lawsuit also seeks to prevent the club's owners from opening another facility unless they fully comply with New York's Health Club Services Law, which requires most health clubs to post a bond, letter of credit or certificate of deposit so that refunds are available for consumers who paid advance fees should the club go out of business. Wellness & Fitness operated without a bond, in violation of this law, thus necessitating legal action by the Attorney General to recover the monies paid by consumers.

"Health club members are entitled to get what they paid for," Spitzer said. "These consumers paid for 24-month memberships, but the club closed after less than five months of operation. To make matters worse, the club was not bonded as required by law. My office will aggressively enforce New York's health club laws to protect the public and to level the playing field for law-abiding clubs."

Wellness & Fitness commenced operations in June 2002 at a location in Armonk, and immediately began selling two-year memberships. Memberships were sold until mid-October 2002, just prior to the closing of the club. After the club closed, members who asked for refunds were told that the club would reopen shortly. Consumers were initially told that the club would reopen at a new location in Armonk, and were then told that the club would reopen at two different locations in Mt. Kisco. To date, however, the club has not reopened.

The Attorney General's lawsuit against Wellness & Fitness follows several recent enforcement actions against health clubs, including a settlement with Gold's Gym, the world's largest health club chain.

An investigation had revealed that only three of the 32 Gold's Gym locations in New York State had posted bonds as required by law. Gold's has now agreed to ensure that all of its outlets comply with the Health Club Services Law.

This case was handled by Assistant Attorney General Doris K. Morin under the supervision of Assistant Attorney General in Charge Gary Brown of the Westchester Regional Office.

Anyone with questions about laws that protect those who join a health club are encouraged to contact the Attorney General's consumer help line at (800)771-7755.