Olympic Athletic Club Lifetime Memberships Lawsuit

About this Case

Owners of Olympic Athletic Club attempted to cancel lifetime memberships contracts and convert these club members to regular dues-paying memberships.

Case Status

The parties reached a settlement on behalf of all non-dues paying members of Olympic Athletic Club (OAC), and the settlement was approved by the King County Superior Court effective September 25, 2012. The settlement class is divided into three categories: (1) “Original Members,” who are individuals that purchased their non-dues memberships directly from OAC; (2) “Pre-1987 Transferees,” who are individuals that purchased or received their non-dues membership from another member prior to July 26, 1987; and (3) “Post-1987 Transferees,” who are individuals that purchased or received their non-dues membership from another member after July 25, 1987. The relevant terms of the settlement are as follows:

1. Original Members: For this group, OAC will honor each contract for the life of the original member. If the original member has a transfer right per the contract, that right may be exercised once during the next 20 years. In advance of any transfer taking place, OAC shall be provided the option to purchase the membership for the same amount offered to the proposed transferee, but no original member may transfer or sell a membership for more than the member paid for it. OAC shall have five business days to make a decision on this option. If OAC decides not to exercise the option to purchase the contract, the transferee will receive seven years of non-dues membership for a payment of $500 in transfer fees. No further transfers of that contract will be allowed.
2. Pre-1987 Transferees: For this group, OAC will honor each contract for the life of the pre-1987 transferee. If the pre-1987 transferee has a transfer right per the contract, that right may be exercised once during the next 20 years. In advance of any transfer taking place, OAC shall be provided the option to purchase the membership for the same amount offered to the proposed new transferee, but no pre-1987 transferee may transfer or sell a membership for more than the pre-1987 transferee paid for it. OAC shall have five business days to make a decision on this option. If OAC decides not to exercise the option to purchase the contract, the new transferee will receive five years of non-dues membership for a payment of $500 in transfer fees. No further transfers of that contract will be allowed.
3. Post-1987 Transferees: For this group, OAC will honor each contract for 14 years. If the post-1987 transferee has a transfer right per the contract, that right may be exercised once during the next 7 years. In advance of any transfer taking place, OAC shall be provided the option to purchase the membership for the same amount offered to the proposed new transferee, but no post-1987 transferee may transfer or sell a membership for more than the post-1987 transferee paid for it. OAC shall have five business days to make a decision on this option. If Defendants decide not to exercise the option to purchase the contract, the new transferee will receive three years of non-dues membership for a payment of $150 in transfer fees. No further transfers of that contract will be allowed.
4. No New Transfer Rights: The settlement does not create any new transfer rights except as set forth above. No transfer will be allowed where a member’s contract contains a provision that prohibits transfer or affirmatively states there will be no further transfer. If, by agreement of the parties, such a provision has been stricken from the member’s contract, then transfer will be allowed as set forth above.
5. Family and Couples Memberships: OAC agrees that a non-dues member with a couple or family contract may substitute a spouse or son or daughter under the age of 18 in place of another without such substitution being considered a transfer.
6. Access to Contracts: OAC will produce a complete copy of all contract papers they have for any non-dues member who requests such a copy.
7. Repayment of Initiation Fees: Some of the contracts entered into with original members included a clause regarding repayment of initiation fees. Upon request, OAC will repay 50 percent of the initiation fees to each original member who has fulfilled the criteria of the membership contract and who has a repayment of initiation fees provision that has not been changed by later agreement. Such member retains all membership rights as modified by the Settlement Agreement.

Case Contact Information

• Phone: 206.518.6228
• Email: classactions@terrellmarshall.com

Class Counsel

Terrell Marshall Law Group, PLLC

Toby Marshall