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North Carolina Sues Women's Gym for Going Co-Ed

Gymgoers were not let out of contracts after club closed

August 4, 2008
Some women join a particular health club because its membership is restricted to women. So, what happens if the club closes its women-only gym and transfers members to a co-ed club?

If it happens in North Carolina, the club finds itself the defendant in a lawsuit.

North Carolina Attorney General Roy Cooper has filed suit against Peak Fitness after he said the company's management closed down a women's-only gym it owned in Charlotte.

Cooper says that under state law, members of a former women's only health cannot not be forced to switch to a co-ed gym without their consent.

According to the complaint, Peak refused to release members of Arboretum Women-Only Health Club, formerly located at 8035 Providence Road in Charlotte, from their contracts or refund their money after the company closed Arboretum on July 10. Peak also allegedly failed to let consumers who were renewing their memberships know that the club was closing and that they would have to use other Peak gyms that are not for women only.

"Consumers who sign up for a gym for women deserve to get what they paid for, or they should get a chance to get their money back," Cooper said. "We expect health clubs to treat members fairly, not take their money without telling them they're about to shut down."

Under a temporary order granted today by Wake County Superior Court Judge Allen Baddour, Peak Fitness cannot continue to take money from any member of the company's former Arboretum club unless they get the consumer's permission to switch them to a co-ed gym. Peak must also preserve records from Arboretum and provide the Attorney General's Office with a list of club members, an accounting of membership contracts, and the complete ownership structure of Peak and its parent company.

Cooper is also asking the court to cancel Peak contracts made in violation of state law and pay refunds to consumers.

Named as defendants in the suit are Peak Fitness VI, LLC of Davidson, North Carolina, as well as Fitness Management of Charlotte, its president, Jeffrey R. Stec, and Jeffrey Harley, who together oversee Peak operations. Cooper's Consumer Protection Division has a separate lawsuit pending against Peak related to issues with the company's clubs in Wake County, Asheville and Wilmington.

Cooper contends that Peak failed to inform Arboretum members who were renewing their memberships that the club would soon close, causing some consumers to sign contracts they wouldn't have entered into had they known the truth. For example, one consumer who renewed her membership on April 16 learned soon after through rumors that the club was about to shut its doors. When she asked the manager about the closing, she said the manager confirmed the rumor but said that no refunds would be available.

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