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In a new class action lawsuit, a California man alleges that ClubCorp USA Inc., a nationwide company that operates golfing facilities, has made the “unconscionable” decision to keep charging membership fees despite closing its locations.
Lead plaintiff Jeffrey Cuenco says ClubCorp closed its 200 locations in response to the coronavirus pandemic – a pandemic has also launched the United States into a “deep recession,” notes the complaint.
However, the golf facility operator has allegedly continued to charge members hundreds of dollars each monthfor memberships they cannot use.
Are you being charged by ClubCorp or another company for facilities you cannot use because of the coronavirus pandemic? Get legal help here.
According to the ClubCorp class action lawsuit, the company charges between $120 and more than $800 a month in fees depending on the type of membership a consumer purchased.
The company reportedly advertises that its memberships will provide golfers “a world of premium benefits across the ClubCorp Network.”
Unlike other golf clubs, however, ClubCorp has allegedly refused to stop charging members after closing its facilities in response to the COVID-19 epidemic.
“Defendant is able to unilaterally charge its customers monthly fees without their consent, as it is in possession of its members’ debit and credit card information. Thus, Defendant has made the deliberate decision to bilk its customers out of a monthly membership fee while its members do not have access to Defendant’s private clubs,” contends the ClubCorp class action lawsuit.
“The sole reason Defendant’s customers pay monthly membership fees is to have access to Defendant’s private clubs. Now, Defendant is charging is customers full price while denying customers access to its private clubs.”
The plaintiff says that he purchased a ClubCorp membership for the University Club, located in San Diego, in 2018. He has reportedly paid $184 a month for his membership since then; however, in March 2020, ClubCorp closed its facility.
Despite this closure, the plaintiff alleges that he was still charged the full fee in April 2020. The complaint states that the plaintiff has not been provided a refund and believes he will continue to be charged a fee by ClubCorp even as the facility remains closed.
Cuenco says that he and other putative Class Members would not have purchased memberships from ClubCorp had they known that they would be charged fees even when its facilities were closed. The plaintiff claims that he paid a premium for his membership that ultimately “did not have the characteristics, benefits, or quantities as promised.”
According to the coronavirus class action lawsuit, ClubCorp’s decision to keep charging fees despite the COVID-19 related closures of its facilities, breaches the contracts it made with its members and constitutes unjust enrichment.
The plaintiff also claims that the failure to cease charging membership fees violates California consumer protection laws, including the state’s unfair competition and false advertising laws.
“Defendant received money in the form of membership fees that was intended to be used for the benefit of Plaintiff and the Class, those membership fees were not used for the benefit of Plaintiff and the Class, and Defendant has not given back or refunded the wrongfully obtained money and membership fees to Plaintiff and the Class,” alleges Cuenco’s ClubCorp class action lawsuit.
The ClubCorp class action lawsuit seeks to represent a nationwide Class of ClubCorp members who were charged fees by the golf club operator despite the closure of its facilities, along with a subclass of similarly affected California consumers. The plaintiff is seeking compensatory and punitive damages, along with injunctive relief and attorneys’ fees.
COVID-19 restrictions have required many businesses and other facilities to close or limit services, including gyms, clubs, airlines, and cruise companies.
At the same time, millions of Americans have lost their jobs and face economic uncertainty, in addition to worrying about their own and their loved ones’ health in the face of the virus.
This plaintiff and others have raised concerns about businesses continuing to charge reoccurring fees for services they can no longer provide, even as consumers struggle to pay for housing and food.
The coronavirus pandemic and resulting restrictions have created a slew of legal issues for consumers, as well as workers. Top Class Actions has created a legal guide to COVID-19 to help consumers stay on top of the issues as they arise.
The plaintiff and proposed Class Members are represented by Lilach Halperin, Michael T. Houchin and Ronald A. Marron of the Law Offices of Ronald A. Marron APLC.
The ClubCorp Membership Fee Class Action Lawsuit is Cuenco v. ClubCorp USA Inc., Case No. 3:20-cv-00774-BEN-AHG, in the U.S. District Court for the Southern District of California.
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