LA Fitness Monthly Dues Contract Cancellation Issues

Case 2: 10-cv-02326-M M B
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UNITED STATES DISTRICT COURT EASTERN DISTRICT OF PENNSYLVANIA
STEVEN BILGRAM, on behalf of himself: and all others similarly situated,
Case No. JURY TRIAL DEMANDED
Plaintiff,
V.
L.A. FITNESS
INTERNATIONAL, LLC,:
Defendant.
CLASS ACTION COMPLAINT
Case 2:10-cv-02326-MMB
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TABLE OF CONTENTS I. II.

III.
NATURE OF ACTION JURISDICTION & VENUE PARTIES SUBSTANTIVE ALLEGATIONS A. B.

C.
1 4
5 5 5 6
8
IV.
Background Regarding Defendant LA Fitness

Defendant LA Fitness's
Monthly Dues Membership Agreement and Practices Deceptive
Defendant LA Fitness's Cancellation Practices Are Abusive And

1.
LA Fitness
Regularly Breaches Its Contractual Obligations By Systematically Ignoring Cancellation Requests So That It Can Continue Extracting Monthly Dues Monthly Dues Membership Agreement is Not a "Monthly"
2.
The
Contract 3.
4.
The 30-Day Notice
Requirement is Unfair and Abusive
10
LA Fitness's Monthly Dues Membership Agreement is Misleading Because It Omits the Company's Requirement That Members Use the Company's Pre-Printed Cancellation Form
10
5.
Applying Prepaid Last Month's Dues

Additional
LA Fitness
to Extend
Memberships An
11
30-Days After Cancellation is Unfair and Abusive
6.
Impedes Members From Cancelling By Refusing to Disclose Contact Information For Its Corporate Headquarters Purportedly the 12 Only Office Authorized to Cancel Memberships
Automatic Renewal of Memberships Violates
7.
Pennsylvania's HCA
13
D.
There Are Hundreds of Consumer Abusive Practices Plaintiff s
Complaints About LA Fitness's Deceptive and

13 21 21 23
E. V.
Experiences
CLASS ACTION ALLEGATIONS COUNT I BREACH OF EXPRESS CONTRACT
VI. VII.
COUNT II VIOLATIONS OF PENNSYLVANIA UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW, 73 P.S. 201-1 et seq
25
VIII.
COUNT III VIOLATIONS OF ALL OTHER STATES' CONSUMER PROTECTION LAWS

COUNT IV COUNT V BREACH OF DUTY OF GOOD FAITH AND FAIR DEALING UNJUST ENRICHMENT
27 30 31 32 32
IX. X.
XI. XII.
JURY TRIAL DEMANDED PRAYER FOR RELIEF
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I.
NATURE OF ACTION 1.
Plaintiff brings this action

are
on
behalf of himself and all other persons in the United
States LLC
similarly situated who: (i)
former members of Defendant L.A. Fitness International,

at least
one
("LA Fitness" or the "Company") who have incurred
additional
monthly billing
charge after they timely cancelled their Monthly Dues Membership Agreements with LA Fitness, despite the fact that they were up to date with dues payments
of cancellations; and
at the time
they mailed their notice Monthly Dues

set forth herein
(ii)
are
current members of LA Fitness who entered into
Membership Ag-eements which contain the egregious cancellation provisions

and who will be forced to pay dues for
one or more
months after they attempt to cancel their
memberships (the "Class").

2.
Defendant LA Fitness
owns
and operates health and fitness clubs
throughout the
"Paid In
United States. New LA Fitness members may choose to enroll under the
Company's
Full
Membership Ageement,
in which
case
the member pays
an
entire
year's
dues up front
(which amounts to several hundred dollars), or to
enroll under its
"Monthly Dues Membership

an
Agreement" (also referred to herein as the "Contract"), in which case the new member pays
initiation
Dues
fee, first month dues, and prepaid last month dues. This action focuses
on
the
Monthly
Membership Agreement.
3.
At all relevant
times, LA Fitness has represented to Class members that the

contract that
can
Monthly Dues Membership Agreement was a "monthly"

with
be terminated
along
monthly dues billing

a
simply by following the Contract's procedures for cancellation.

in
Such
representation is deceptive and misleading because,

and
actuality, due to
LA Fitness's
egregious policies
practices, it is virtually impossible to cancel the Contract without being

dues
even
charged at least one or two months of additional
when members follow the
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Company's
strict cancellation procedures. More

LA Fitness
specifically:
imposes an unreasonably long 30-day notice requirement (or notice for newer contracts) for members to request cancellation of 20-day their memberships. If a member's notice of cancellation is not postmarked at least 30 days prior to the next billing date (or 20 days in the case of newer Contracts), LA Fitness will charge that member at least one additional month's dues via electronic funds transfer ("EFT") from the member's bank account or credit card even though the member no longer wishes to continue using the club's facilities.
The 30-day notice period is unfair and abusive because, when combined with LA Fitness's other egjegious cancellation procedures set forth below, it virtually assures that members cannot cancel within this time frame and that LA Fitness will be able to bill members for at least one additional month of dues via EFT after the member has sent a written cancellation notice to LA Fitness's Irvine, California post office box, in accordance with the procedures specified in the Contract;
30-day notice requirement (and newer 20-day requirement) is also unfair and abusive because the Company has the ability to stop monthly dues billing almost immediately after it receives a member's cancellation request. Indeed, LA Fitness has adopted a new membership agreement for its California clubs that requires only 5 days notice of cancellation, but LA Fitness is not using this contract in other states;
LA Fitness's LA Fitness's Contract is misleading because it omits material information needed to cancel, namely, that members must use the Company's preprinted notice of cancellation form obtainable only by visiting an LA Fitness Facility in person to terminate their membership. Specifically, the Contract merely requires "mailing written notice ofyour cancellation request to: LA Fitness, P.O. Box 54170, Irvine, CA 92619-4170." By imposing this additional requirement that is not stated in the Contract, LA Fitness impedes or delays members from cancelling, and thus, enables LA Fitness to charge additional monthly fees after its services are no longer used or desired;
The pre-printed cancellation form can only be obtained in-person at an LA Fitness club. By requiring members to use this form, LA Fitness causes members to delay cancelling their memberships until they can travel to an LA Fitness club and obtain the form. This prevents members from sending their cancellation notice within the prescribed 30-day period, resulting in the member being charged for an additional month's dues;
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representation in the Contract that "no further billing will occur" after timely mailing a written notice of cancellation is also misleading and deceptive because even if a member is current in his/her payment of monthly dues and sends the Company written notice of cancellation more than 30 days before the next billing date (or more than 20 days in the case of newer Contracts), in all cases LA Fitness bills members for at least one more month by applying the member's prepaid last month's dues (which members pay when they initiate their memberships) to extend the Contract by at least another 30 days;
While LA Fitness discloses in its Contract that "your last month's prepaid dues will be appliedfor your final monthly payment, extending your membership at least an additional 30 days, at which time your membership will expire, this statement is misleading and deceptive because: (i) it is inconsistent with the Contract provision stating that "no further billing will occur" after timely mailing of the notice of cancellation; and (ii) it implies that the prepaid last month's dues will be applied to pay dues for the month in which timely notice of cancellation was given, rather than applied as a payment to extend the membership for another 30 days after the end of the 30-day period covered by the final
LA Fitness's
monthly EFT billing;

LA Fitness further impedes members from cancelling by refusing to allow members to cancel their memberships in-person at LA Fitness clubs where their memberships were initiated;
delays members from cancelling with its policy and of refusing to provide members with telephone, facsimile or epractice mail contact information for the Company's Irvine, California corporate office the only LA Fitness office that purportedly can cancel memberships. This practice prevents members from promptly communicating cancellation requests and from receiving immediate confirmation that LA Fitness has received their cancellation requests and acted upon it. Instead, members can only confirm that their cancellation request has been received and acted upon is by checking their next month's bank or credit card statement to see if they are still being billed by LA Fitness; and
Defendant LA Fitness has been and continues to be unjustly enriched by its policy and practice of systematically ignoring and refusing to act on members' properly submitted written cancellation notices and continuing automatic billing of monthly dues from members' bank accounts and credit cards, in blatant disregard of the Company's obligations under the Monthly Dues Membership Agreement.
LA Fitness also
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4.
can
Thus, despite its representation to the Class that it offers monthly Contracts that
be cancelled at any time by
following the cancellation provisions in the Contract, Defendant
LA Fitness has structured and
implemented its Monthly Dues Membership Agreement in an

extract dues from members for months
unfair, abusive and deceptive manner that is designed to

after
they attempt to
5.
cancel their Contracts.

to
Indeed, if a member wishes
stop using LA Fitness's facilities and not be

or
charged additional
facilities,
a
dues for periods in which he
she does not wish to
use
LA Fitness's
member must
give LA Fitness
For
at least 60
days notice of cancellation (or at least 50

stop using the gym by July 1,
days for newer Contracts).
example,
if a member wants to
2010, he must send written notice of cancellation to LA Fitness's Irvine, California post office
box, post marked no later than April 1, 2010,

card via EFT
one
at which time LA Fitness
will bill his/her credit the member's

so
last time
on
May 1, 2010, and then
LA Fitness will
use
prepaid expire on
last month's dues to extend his/her membership
by an
additional 30
days
that it will
July
1. The true
procedures and timeframe to cancel are not known to
Class members and cannot
be derived from the Contract.

6.
As
a
result of the unfair, abusive and
deceptive contract provisions and business
practices of LA Fitness, monthly dues members typically incur dues for at least two months
following the date they attempt to terminate their Monthly Dues Membership Agreements.
7.
not limited to
Plaintiff seeks
damages suffered as
result of Defendant's
conduct, including but
compensatory damages and injunctive relief
II.
JURISDICTION & VENUE 8.
This Court has
subject matter jurisdiction pursuant to the
Class Action Fairness
Act of 2005, 28 U.S.C.
1332(d), because at least one class member is

4
of diverse
citizenship
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from at least
one
Defendant; there are more than
100 class members
nationwide; and the
aggregate
the
amount in
controversy exceeds $5 million. This Court has personal jurisdiction over

LA Fitness maintains offices in this state and conducts business
parties because Defendant
here.
9.
Pursuant to 28 U.S.C.
1391(a)(2),
venue
is proper in the Eastern District of claims occurred in
Pennsylvania because a substantial part of the acts giving rise to Plaintiffs'

this District.
III. PARTIES 10.
11.
Plaintiff Steven
Bilgram is
a
resident of Pennsylvania.
Defendant LA Fitness is
privately-owned limited liability company that operates

States and
health and fitness clubs
throughout the United

LA Fitness's
Canada, and sells memberships to the

Box
public for these clubs.

maintains its IV.
mailing address is P.O.

at 2880 Michelle
54170, Irvine, CA 92619 and it
principal executive offices
Drive, Irvine, CA, 92606.
SUBSTANTIVE ALLEGATIONS
A. 12.
Background Regarding Defendant LA Fitness

LA Fitness
was
founded in 1984 to
purchase
club
and operate
underperforming fitness
clubs.
Through the mid-1990's, the Company grew its

and by
portfolio both by acquiring and
turning around existing clubs
developing, opening and operating newly constructed

a new
properties.
In
1995, LA Fitness designed and built
45, 000 square foot multipurpose health

In
and fitness club that became the
Company's signature look.
1998, the Company began to
rapidly increase its new club development and to expand into new geographic regions.
13.
Currently,
over
LA Fitness
operates
over
275 fitness clubs from New York to
California with
1,000, 000 members. Clubs range in size from 20, 000 to 60, 000 square feet
5
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and
typically offer access to circuit training equipment,

swimming pools, whirlpools,
a
free
weights, cardiovascular equipment,
aerobics programs,
14.
saunas, and
racquetball
and basketball courts.
LA Fitness is
"Health club"
as
that term is defined under Pennsylvania's Health
Club Act within
("HCA"),
73 Pa. Cons. Stat. Ann.
2162, which regulates health clubs operating

as
Pennsylvania.
The HCA defines "Health Club"
"[a]
person,
firm, corporation,
organization, club or association engaged in the sale of memberships in a health spa, racquet
club, figure salon, weight reduction center or other physical culture service enterprise offering
facilities for the preservation, maintenance, encouragement
or
development
of physical fitness
or
physical well-being."
B. 15.
Defendant LA Fitness's Monthly Dues Membership Agreement and Practices

New LA Fitness members may choose to enroll under the in which
case
Company's Paid
dues up front
In Full
Membership Agreement,
the member pays enroll under its
an
entire
year's
(which
amounts to several hundred
dollars), or to
Monthly Dues Membership
Agreement,
canceled at
16.
in which
case
membership purportedly is
on a
month-by-month basis
and may be
anytime by using the procedures set forth in the Contract.

If a member selects the
monthly dues membership, and signs LA Fitness's

a one
Monthly Dues Membership Agreement, he/she is charged

month dues and prepaid last month dues.
vary.
time initiation
fee, plus first
Monthly dues are typically around $35.00, but may
Additionally, he/she must provide LA Fitness with a bank account or credit card from
which additional
Dues
monthly dues will be billed automatically by EFT. Specifically,
the Monthly
Membership Agreement states:

YOUR EFT BILLING DATE: Your monthly dues will be billed and collected and continuing on the same day each once a month beginning on
month until terminated in the manner provided below.

6
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17.
The
Monthly Dues Membership Agreement also purports to explain how
members
can
cancel their
memberships and stop monthly dues billing. Specifically,

an
LA Fitness
requires members to mail a written notice of cancellation to

Irvine, California at least
30
LA Fitness post office box in
days before the next billing cycle, stating:
How to stop your monthly EFT billing: If there is no back dues or a balance due on your membership, you may stop the billing of the monthly dues through EFT and cancel your membership by providing written notice of your request at least thirty days prior to your next billing date: Send the written notice to LA Fitness, P.O. Box 54170, Irvine, CA 92619-4170. If the notice is postmarked at least 30 days prior to your next billing date, no further billing will occur. If the notice is
postmarked less than 30 days prior to your next billing date one or more billing will occur. In either case, your last month's prepaid dues will extend your membership expiration by an additional 30 days or more, depending on your original sign up date.' (Emphasis added.)
18.
Newer versions of the
Monthly Dues Membership Agreement require that a
notice of cancellation be
postmarked at least 20 days before the next billing date in order to

stating:
avoid
being billed
an
additional month,
HOW TO CANCEL YOUR MONTHLY DUES MEMBERSHIP: You may cancel your membership and the continued billing of monthly dues through EFT or [credit card] by mailing written notice of your cancellation request to: LA Fitness, P.O. Box 54170, Irvine, CA 92619-4170 or such other address designated by LA Fitness. A cancellation notice postmarked a minimum of 20 days prior to your next Billing Date will result in no further billing of monthly dues. A cancellation notice postmarked less than 20 days prior to your next Billing Date will result in one more monthly billing. Then your last month's prepaid dues will
be applied for your final monthly payment, extending your membership at least additional 30 days, at which time your membership will expire.2
A true and correct copy of the LA Fitness Monthly Dues notification provision is attached hereto as Exhibit A.
A
an
Membership Agreement
with the 30-
day
the
A true and correct copy of the newer LA Fitness Monthly Dues 20-day notification provision is attached hereto as Exhibit B.
with
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(Emphasis added.)
19.
The
Monthly Dues Membership Agreement further provides that, regardless of
when
member's notice of termination is
postmarked, the membership is extended by an

of the
additional 30
days
or
more,
depending on the member's original sign up date, because
prepayment of last month's dues. Specifically, the Monthly Dues Membership Ageement
provides:
Then, your last month's prepaid dues will be applied for your final monthly dues payment, extending your membership at least an additional 30 days, at which time your membership will expire.
20.
2 months
The effect of these
provisions is that a member will usually incur dues for at least
following the date the member attempts to terminate his/her Monthly Dues
and stops
dues
using the
services of LA Fitness
i.e.,
and
one
additional
monthly
billing via EFT if notice is not given before the 30-day period,
a
application of prepaid
last month's dues to extend the Contract by another month. As
result, the member is

case
foreclosed from terminating the Contract for at least 60 days (or 50 days in the
Contracts that
of newer
provide a 20 day notification of cancellation), after mailing his/her notice of

During this period the Class member does not wish to use the services
use
cancellation.
of LA
Fitness and does not C. 21.
them but is still
paying for these services.
Defendant LA Fitness's Cancellation Practices Are Abusive And Deceptive
Defendant LA Fitness has

and similar statutes
engaged in unlawful conduct, including violations
of
the
HCA3
regulating the duration, renewal and cancellation of membership
LA Fitness's Monthly Dues Membership Agreement is subject to the requirements of the HCA because it is a contract with a term of more than three months, and thus, falls within the HCA's defmition of a "Health club contract." See HCA 2162 (defining a "Health club contract, as "[a]n agreement in 8
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agreements in
forth below.
states in which it owns and
operates health clubs, by engaging in the practices
set
I.
LA Fitness Regularly Breaches Its Contractual Obligations By Systematically Ignoring Cancellation Requests So That It Can Continue Extracting Monthly Dues
a
22.
own
LA Fitness has
policy and practice of regularly and systematically ignoring its

contract which
can
promise to provide a monthly membership
be cancelled upon written

to cancel
notice, LA Fitness routinely continues monthly dues billing despite members' attempts
by sending notice in the maimer prescribed by the Monthly Dues Membership Agreement.
Indeed, these practices and procedures
are
nothing more than a scam to
extract additional
monthly dues from LA Fitness members.

2. The Monthly Dues Membership Agreement is Not Contract
a
"Monthly"
23.
Monthly Dues Membership Agreement is deceptive and along with monthly

In
misleading because it is not a "monthly" contract, which can be cancelled

dues
billing
simply by following the Contract's procedures for cancellation.

a
actuality, it
obligates a member to
because LA Fitness
contract that is
typically more than 3
months in duration. This is

LA Fitness
requires upfront payment of first and last month's dues,
automatically bills members via EFT for an additional month if they do not send notice
cancellation at least 30 the last month dues facilities. This
24.
of
days before the next billing cycle, and LA Fitness charges all members
even
though they are current in their payments and have stopped using the
contract.
a
clearly is not a "monthly"

For
example, a member who signed
Contract
on
the first
day of any given

to
which the buyer of the health club services purchases, or becomes services to be rendered over a period of more than three months...").
obligated
purchase,
health club
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month and then
attempted to cancel just 4 days later (after the expiration of the 3-day rescission
period), would be billed by LA Fitness for at least 2 additional months.

3. The 30-Day Notice Requirement is Unfair and Abusive
25.
Although LA Fitness has the ability to stop continued billing of monthly

a
membership dues almost immediately after it receives

Fitness
newer
member's notice of cancellation, LA
requires that the notice of cancellation be postmarked at least 30 days (or in the case of
next
agreements, 20 days) before the
billing date, before it will stop monthly EFT billing.
If a cancellation notice is the next
postmarked less than 30 days (or 20 days for newer Contracts) before
billing for at least one additional month.
current
billing date,
LA Fitness will continue
26.
LA Fitness's
30-day notification requirement (and its

and
20-day notice
period) is dilatory and unfair,

monthly dues
from members
purposely aimed to
allow LA Fitness to extract additional
long after they request that their monthly dues billing be stopped.
LA Fitness has
Indeed, in the face of litigation,
recently adopted
a new
membership ageement
LA
for its California locations which

Fitness is not
requires only 5 days notice of cancellation. However,

new
using this
contract in other states. A true and correct copy of the

as
California
membership ageement is attached hereto

4.
Exhibit C.
LA Fitness's Monthly Dues Membership Agreement is Misleading Because It Omits the Company's Requirement That Members Use the Company's Pre-Printed Cancellation Form
27.
The
Monthly Dues Membership Agreement is misleading because it fails to

cancel, namely, that members must use the Company's pre-
state
material information needed to
printed notice of cancellation form that is only obtainable by personal pickup at an LA Fitness
club. This
requirement, along with the 30-day notice requirement, guarantees that at least one billing will occur.
10
month of additional
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28. written notice
Specifically, the Monthly Dues Membership Agreement merely requires "mailing

ofyour cancellation request to: LA Fitness, P.O.
Box
54170, Irvine,
CA 92619-
4170." Thus, the Contract fails to disclose that LA Fitness
requires members to use the
Company's pre-printed cancelation form to terminate their membership.

29.
While the
so
Company's web
can
site purports to allow members to download the
cancellation form office
that it
be
printed and sent to the Company's Irvine,
California post
box,
on consumer
complaint websites members report persistent computer glitches that

a
prevent them from downloading the form from LA Fitness's website. As
result of Defendant's
deceptive practices,
until such time
as
LA Fitness members
are
further delayed from
cancelling their membership

a
they are able to travel to
an
LA Fitness club and obtain
copy of the form.
5.
Applying Prepaid Last Month's Dues to Extend Memberships An Additional 30-Days After Cancellation is Unfair and Abusive
30.
LA Fitness has
unjustly enriched itself by its practice of applying prepaid last
month dues
(which members pay when they initiate their monthly dues memberships), to extend days beyond the end of the monthly billing period in which
LA Fitness
no
all members' Contracts by at least 30

a
timely cancellation notice was given.

even
charges members for this additional month's

and
are
dues
though the members wish to cancel,
longer use the facility,
current in all
dues payments.
31.
Although the Monthly Dues Membership Agreement discloses that "your last applied for your final monthly payment, extending your
at
month's prepaid dues will be
membership at least an additional 30 days,

statement is
which time your membership will expire, this
misleading and deceptive. First, this representation is inconsistent with and stating that
11 "no further billing will occur" after
contradicted by the Contract provision
timely
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mailing of the notice of cancellation. Second, this representation implies
that
member's
prepaid last month's dues will be applied to pay dues for the month in which timely notice of
cancellation was
given, rather than applied to pay for a subsequent month, thereby prolonging
membership for another 30 days.

32.
Accordingly,
it is unfair and abusive for LA Fitness to
apply prepaid last-month's

30
dues to extend the the date when

no
expiration of the monthly dues membership for an additional

and to
a
days beyond they
membership would otherwise end,

This
charge consumers
for
service that
longer wish to use.

6.
practice is, in effect,
cancellation penalty.
LA Fitness Impedes Members From Cancelling By Refusing to Disclose Contact Information For Its Corporate Headquarters Purportedly the Only Office Authorized to Cancel Memberships
to further
33.
Moreover,
delay and impede members' attempts

a
to cancel their
memberships,
Defendant LA Fitness has established
Company-wide policy and practice of

for the
refusing to provide members with a facsimile number or e-mail address

corporate office, which would allow members
facsimile
or
Irvine, California
to
immediately
send cancellation notices via

was
e-mail and to obtain prompt confirmation that the notification

LA Fitness clubs refuse to assist members
received by the
Company. Also,
via facsimile in which
or
by sending cancellation notifications headquarters in the same manner

LA Fitness
U.S. mail to the
Company's Irvine,
California
membership initiations are communicated to its headquarters. Instead,

a
members must send the cancellation notices themselves, via U.S. mail to
34.
post office box.
By requiring members to send written notice via U.S. mail to LA Fitness's Irvine,
California post office box rather than allowing members to
immediately cancel membership and

initiated
monthly dues billing in-person at the club where their membership was
LA Fitness
(or any other
location), or by telephone,
or
by facsimile,
12
or
by e-mail,
or
through the Company's
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Internet
site, the Company has built into its

from
Contract
manipulative and deceptive device that
substantially delays consumers

dues
cancelling their memberships and terminating their monthly
billing.
35.
Furthermore, requiring that written notice of cancellation be mailed to a post

an
office box in Irvine, California, rather than
office staffed by LA Fitness
employees during
normal business hours when mail is delivered, prevents members from

notices
sending cancellation
by any form of mailing that is subject to tracking and confirmation of receipt without
expenses, such
as
incurring additional
a
the cost of sending the notification via certified mail with
return
receipt request. Indeed, the only method by which members can confirm that their
by checking their next month's bank
cancellation request has been received and acted upon is

statement or credit card statement to
see
if they
are
still
being billed by LA Fitness.

Pennsylvania's HCA
7.
Automatic Renewal of Memberships Violates LA Fitness's
36.
renews
Finally,
Monthly Dues Membership Ageement automatically
without
giving the member a renewal option that must be affirmatively accepted at the
As
a
expiration of each contract term.
result,
LA Fitness's
Agreement violates Pennsylvania's HCA

may contain
an
2164's
prohibition that "[n]o health club contract

same
automatic renewal clause." For this
reason, the
Ageement also violates similar statutory restrictions

health club clubs.
D.
on
the duration, cancellation and renewal of
membership contracts in other states in which the Company owns and operates health
There Are Hundreds of Consumer Complaints About LA Fitness's Deceptive and Abusive Practices
37.
Internet websites that allow
consumers
to
post complaints about businesses,
13
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including the Better Business Bureau's national website,
are
filled with hundreds of grievances
by current and former LA Fitness members who have experienced seemingly endless delays by
LA Fitness in their attempts to terminate memberships and monthly dues
billing, resulting in
common
additional
runs
monthly dues charges after they have attempted to cancel.
The
thread that
through all of these complaints is that LA Fitness claims to have "never received" the monthly billing for one or more additional months.
even
cancellation notice, and continues
Incredibly,
LA Fitness's website does not
provide a telephone number to contact its

office that purportedly has the
corporate office in Irvine, California

to cancel
the
only LA Fitness
can
ability
memberships
so
that members
have their
grievances addressed in a timely and
effective manner.
38.
a.
The
following are just a few examples
of such
complaints:
dated
From the Better Business Bureau
("BBB") website,
February 3, 2010,
an
LA Fitness member
complained:
[W]hen I tried to cancel my membership, we went in to cancel and the girl did it for us, told us it was cancelled (although it might not have been early enough to escape the next month's payment. You have to cancel 20 days in advance, which is ripoff enough already. However, didn't everyone have to pay the first and last months' dues when you sign up? What's that for?) and gave us a receipt. 2 months later, they were still charging me. We went in to find out what was going on and were told that they never cancel memberships in the store, they can't do it; they give me a form I have to send in to corporate.
b. Also from the BBB website, dated December 26, 2009,
an
LA Fitness member
vented: When I
15 minutes to get me enrolled right there at my gym in Corona. When I decided to cancel however, and went back to the I was told that they did not have access to my account and same gym in Corona wouldn't be able to cancel it for me. They told me I'd have to deal directly with there Corporate office in Irvine. There's no phone contact. I mailed in my
signed up, it took them like
14
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request to cancel. 30 days later, they pretended they hadn't received it. So they continued to bill me. So I mailed in other request, and they pretended not to receive it again. So I went to the post office and mailed out a 3rd one via certified mail, some time went by, and fmally, I received an e-mail confimation [sic] from them stating that my account would be billed as scheduled and canceled within 30 days. Don't get me wrong, I love "going green" however, why do I have to mail in my request to cancel via certified mail, because there's no available phone number or e-mail address, but then they go
ahead and e-mail me from an "unmonitored" address? How's that fair? Is becasue [sic] they didn't want my e-mail's in regards to why I'm still getting billed for a service I've been trying to cancel 3 months aga [sic]?
(Emphasis added.)
c.
complaint on the BBB website dated September 29, 2009,
stated:
pro-business person. I ordinarily find, contrary to common belief, that large companies are the easiest to deal with and the most respectful of their customers, because that is the way they establish lasting relationships and achieve long term success. However, after dealing with LA Fitness, I am pretty sure that their business is *actually* a scam. They signed my husband and myself up for a joint "family plan" gym membership, on a single contract which referred to the membership as shared. When we decided to cancel, we experienced all of the same run arounds that everyone else seems to have experienced, but we did finally get them to cancel the membership (several months and several undeserved payments after we first initiated the process). The real problems came
I
am a
very
later. Even AFTER sending us an email confirming that the account was closed, LA Fitness didn't stop the automatic debits from our account. Instead, they *halved* them. We didn't realize this until 9 months later, because the debits were coming out of a bank account that we don't normally use very much. I called them to explain the "mistake" and get a refund. I assumed that my experience would be as it has been with numerous other companies that I have dealt with, and that I would simply explain what had happened and they would refund the money. Interestingly, when I spoke to the receptionist at the local branch, *she* was very respectful and helpful, and said, "yes, we have a bad cancellation policy I'll get back to you within the week about this." But then what I got instead of a call back from her, was a call from corporate. The contrast
STRIKING. It was clear that their *conscious and deliberate approach* was to try to intimidate and badger me into just giving up. At first, the woman I spoke with refused to even cancel the account over the phone, much less refund the money. She wouldn't even let me speak, but just jumped in with some story about how we had two accounts not one, and we only closed one of them. (First I heard about it!) She was belligerent and patronizing. When she realized she was actually dealing with someone calm and articulate, she switched tacks a little and
was
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tried to get me to agree that if she cancelled the account over the phone, I would "waive any claim to have past amounts refunded." Pretty ballsy. Of course I refused that. I actually spent about an hour on the phone, and I made her give to me another representative to talk to. He took exactly the same approach. Finally, I had to give up and just ffie in small claims court to get back the $300 they
incredible experience. They are a very dishonest but company. I'm sure they won't last, with these kinds of fraudulent practices, until they gasp their last gasp I highly recommend that you stay away.
stole. It
really was
an
(Emphasis added.)
d. Another BBB
complaint dated September 16, 2009,
stated:
Don't join LA Fitness. LA Fitness lie to their customers. They are not trustworthy to do business. Busines[s] practice is terrible. I join them for a few weeks and decided to cancel due to their business dishonesty. [O]nce they have with the amounts and your credit card, they will charge whatever they come up took a few months say you sign up for their training. Their cancelation process in the current month. That's a scam to process even [if] you make it to cancel red flag of their company. Be wise do not join LA Fitness. I joined just because their facility looks nice outside but it is very scary inside when it comes to payment. They are very greedy and fraudulent practice business. Better watch
out...
(Emphasis added.)
e.
Yet another LA Fitness member added this
complaint to the BBB website on July
8, 2009:
LA fitness purposefully makes it extremely difficult to cancel membership. I have read many online reviews and it seems like many people went thru the exact same experience as me. I had to go to the club to pickup the cancellation form (big RED flag). I mailed a certified letter 20 days prior to billing cycle but still got charged. Called into their 800 number and the representative cancelled the membership but claimed he never received the
immediately
letter.
Many people have been through the same. I believe LA fitness purposefully misleads people on their cancellation policy in hopes of continue to charge
them. In this day and age we shouldn't have to drive/pickup/mail letters. It should be done either via phone or online. I understand the notice period but the whole certified letter and them claiming to many people that they never received
it sounds like
big scam.
16
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(Emphasis added.)
f. Another BBB website
complaint dated April 16,
2009 reveals the
same
frustrations in
cancelling membership:
L.A. Fitness seems like a good club, reasonably priced, unless you want to cancel. You have to fill out a form and mail it 20 days before you want to cancel. BUT when you sign up you have to pay the first and last months membership. So unless you have the keen insight that you want to cancel 50 days before you want to stop using LA Fitness you have to pay for that last months membership anyway... seems a bit ridiculous that you have to mail in a certified letter in this day and age when canceling via the web is very easy... heck
I
pay taxes online, but can't cancel my gym membership???? What gives.... Seems like a nice way of keeping you paying when you don't even want to go.
can
(Emphasis added.)
g.
on
ComplaintsBoard.com reveals more of the same, including this complaint made
January 26, 2010:

I wasn't using my membership enough, so I decided to cancel it in July of 2009. went in to cancel and they said you can't cancel here, you have to send in written cancellation and it will take a couple of months. That should have been my first
clue.
I
got the form, and
sent it off. I also learned
this, keep
copy and send
registered mail!
Everything I do is electronic. I don't get paper copies of any bills to try and be more green. I rarely use my credit card anymore, so when I logged on to check it the other day, I noticed that LA Fitness was on there and had been all of the previous bills.
I called
never
immediately...and gee,
guess what
they said? Oh, it looks
like
we
received it.
I hate
dealing with dishonest people.

are
They
the
ones
who
so
got my letter
played their game and did as I was told. and pitched it in the garbage. Why not?
It wasn't
registered,
I can't prove that I sent it.

or
Sometimes it is
really embarrassing [sic],
maybe just depressing to know that
17
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companies like this exist.

months. What I am really hoping is that someone will read this and realize they are dealing with a dishonest company and take their business to someone who is trying to do a service rather than steal money from their customers. The people that run the individual clubs were great. It is just the people who call the shots that I am so
I know I have
no
way to
get back my fees for the past
seven
disappointed with.
(Emphasis added.)
h.
A
complaint submitted to ComplaintsBoard.com,
on
December 21, 2009, stated:
membership cancellation form as instructed via certified mail. LA Fitness claimed they never received it. So after ripping their butts and 3 phone numbers later I got membership cancelled over the phone They make it very difficult so they can keep taking your money.
I sent the
(Emphasis added.)
Yet another
ComplaintsBoard.com post on September 22, 2009, complained:
impossible to cancel their membership. I contacted them months ago to try to cancel their cancel anytime membership. In order to cancel online you must sign up for an online account. They make you sign in to your account at sign up. If you go with them save your sign in information. It is a nightmare to get through to them to get your information. This is a planned by the company so that you will have other things to do and forget about your 30.00 a month. It worked on me. It was such a problem that I did forget. They have their cancellation form on line but for some planned reason you can not open the file. I disputed it with my bank and ultimately they continued to charge my card. Four months later I went through the steps again and once again you can not download their cancellation form. Finally I went to their building where they try to talk you out of leaving but ultimately they gave me a cancellation form which you have to send in by regular mail. They also tell you that they need to receive it ten business days in advance to stop from charging you again on their next billing cycle. If they put as much time into customer service as they do into making sure you cant [sic] cancel they [would] be a much better
LA Fitness makes it
Company.
(Emphasis added.)
j.
In
a
June
29, 2009 post on ComplaintsBoard.com, another former LA Fitness
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member relates being

I
charged monthly membership dues after sending a cancellation notice:
I recently moved and a[m] now living far from the nearest LA Fitness center. told me I need stopped by before I moved out to terminate my membership. They sent it. to send them a filled out form by mail. Ridiculous. I printed it ou[t] and them. They said "they A month later I saw I am still being charged. I called have no record of my cancellation". How convenient! I filled [out] the form and them again and sent it as a certified mail to have the proof of me mailing receiving. The
calls charges continued. I closed my bank account, and now I am getting from LA Fitness asking me to update my banking account information. I said I
canceled my membership but for some
reason
it's still open.
(Emphasis added.)
k.
In
a
June
8, 2009 post on ComplaintsBoard.com,
former LA Fitness member
relates similar difficulties in

I
cancelling monthly dues membership:
complied to the letter with instructions in my contract for cancelling membership...but I did not send the letter by certified mail. After about two months, I began receiving collection calls from LA Fitness. They "never received" my letter and want to collect additional months' membership fees that I do not owe. I'm sending another letter...this time to the CEO, but I should not have to go through all of this hassle.
1.
Similar
2010
consumer
complaints are found on my3cents.com, including the following
February 25,
post:
Never trust the word of the
people at LA Fitness when it comes to billing!!
They keep giving me wrong instructions to cancel the membership purposely 6 months!!! so that they can keep charging me every month even after
Total scam!! Worst dishonest business ever!!!
(Emphasis added.)
m.
Former LA Fitness
employees corroborate the consumer complaints.

a
For
example, in a February 19, 2010 post on PissedConsumer.com,

19
former LA Fitness
employee
Document 1
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Page
22 of 45
confirmed that the
Company continues billing members after they have mailed
notice of
cancellation, and advises members to cancel their credit cards, stating:

I worked for LA Fitness for 2 years, until I decided that I couldn't handle all the lies, scams, injustices and harassment going on in this place. You would think nothing crazy really goes on here, but you're in for a big surprise.
[P]ersonally, I think the people who suffer at LAF the most (besides the members) are the Operations and janitors. They are the ones who get paid the least and are the most unappreciated of the bunch. And yet they work the hardest.
Let's break it down:
Cancellations: they give you a form and tell you to mail it. But you're still getting billed? Cut off your credit card, cannot stress this enough. You as member don't owe them anything, because with over 300 clubs opened nationwide, they don't need your last payment of 34.99. But they will sure as
deny to help you.
(Emphasis added.)
n.
The above post is corroborated
by another former LA Fitness employee, who

site
on
posted the following on the PissedConsumer.com web

I love this I
am a
January 27,
2010:
MSM who has been with the company for 10yrs and started as an opener and worked my way up. This is all very true what I hate Lafitness is saying when ever you call so called corp to complain your not really reaching CORP your reaching a manager at a local club across the usa thats [sic] why you hear gym music in the back ground and why its very loud. LA [Fitness]
form[er]
[sic] mbrs they only care about there [sic] money..In this day in age why would you have to cancel a membership by sending in a letter 30 days in advanced[.] I hated telling my members that[.] Well here is. a little secret you can cxl at any point in time and they do have the ablity [sic] to cancel in the clubs by any Operations Manager so dont [sic] let them tell you u cant[.] [R]emember the whole sales pitch!! (by paying time they your first and last months dues there will be no contract but by the last months up cxl by snail mail you have been billed again and they get your front[.] [T]here [sic] CROOKS BEWARE[.] [I]f you would like secrets to canceling or even recieving [sic] a refund let me know..i will check back
does not
care
about there
20
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(Emphasis added.)
E.
Plaintiff s Experiences
39.
Plaintiff Steven
Bilgcam entered into a Monthly Dues Membership Agreement

about
with Defendant LA Fitness
on or
July 2006.
The form of written
Monthly Dues
Membership Ageement entered into by Plaintiff is substantially identical in all material respects
to that entered into with other members of the Class. Plaintiff's
monthly dues were $34.99,
and
he paid his first and last month dues upon initiation of his
40.
membership.
Plaintiff paid his
monthly dues by credit card on or about the first day of each

immediately after he entered into
the
month beginning with the month
Monthly Dues
Membership Agreement with

41. On
or
LA Fitness. LA Fitness
before
April 2007, Plaintiff provided written notification to

and
requesting that his membership

that his notification
was
monthly dues billing be cancelled. Notwithstanding the fact
postmarked more than 20 days before the next billing date, LA Fitness
automatic monthly dues
ignored Plaintiff's cancellation notice and continued

Plaintiff's credit card $34.99
42.
on or
billing and charged
about June 1, 2007.
LA Fitness failed to refund and/or credit Plaintiff's credit card for his
prepaid last
month dues
(which Plaintiff paid when he initiated his monthly dues membership),
and instead
unilaterally extended Plaintiff s membership for the duration of Plaintiff s pre-paid last month
dues. As
a
result, Plaintiff was overcharged by LA Fitness for at least two months of dues,
representing an amount of at least $69.98 (2 x $34.99 per month).

V.
CLASS ACTION ALLEGATIONS

43. Pursuant to Rule 23 of the Federal Rules of Civil
Procedure, Plaintiff brings this
class action
individually and on behalf of all other persons similarly situated in the United States
21
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who:
(i)
are
former members of LA Fitness who have incurred at least
one
additional
monthly
billing charge after they timely cancelled their Monthly Dues Membership Agreements with
Defendant LA Fitness,
despite the fact that they were up to date with dues payments
and
at the time
they mailed their notice of cancellations;

into
(ii) are
current members of LA Fitness who entered
Monthly Dues Membership Ageements which
contain the
egregious cancellation provisions

months after
its officers
set forth herein and who will be forced to pay dues for
one or more
they attempt to
directors
or
cancel their
memberships.
The Class does not include Defendant
or
or
their immediate families.

44. On information and
belief, the Class is compromised of thousands of persons,

a
making joinder of such cases impracticable. Disposition of the claims in
class action will
provide substantial benefits to the parties and the Court.

45.
The
rights of each Class member were violated in

common
similar fashion based upon
Defendant's uniform actions. Some

a.
issues present here
are:
Whether Defendant participated in and complained of herein;
pursued the course of conduct

a
b.
Whether Defendant's Monthly Dues Membership Ag-eement constitutes violation of the HCA and similar statutes in the states in which it does
business;
c.
Whether Defendant's conduct complained of herein constitutes an unfair or deceptive trade practice in a violation of the consumer protection laws in the states in which it does business;
d.
Whether Defendant's conduct complained of herein constitutes the Monthly Dues Membership Agreement;
Whether Defendant has been unjustly
breach of
e.
enriched;
and
f.
Whether Plaintiff and Class members have sustained what is the proper measure of those damages.
22
damages, and if so,
Document 1
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Page
25 of 45
46.
47.
Plaintiff s claims
Plaintiff will
no
are
typical of the claims of the Class he seeks
to
represent.
of the Class.
fairly and adequately represent and protect the interests

are
Plaintiff has
interests that
antagonistic to or that irreconcilably conflict with those of other
Class members.
48.
Plaintiff has retained counsel competent and
experienced in the prosecution
of
class action
49.
litigation.
A class action is
superior to all
other available methods for the fair and efficient
adjudication of Plaintiff s
and Class members' claims. Plaintiff and the members of the Class
as a
have suffered similar harm resolve these
result of Defendant's conduct. Certification of a class action to of
disputes will reduce the possibility of repetitious litigation involving thousands
Class members.
50.
Class certification is
R. Civ. P.
appropriate under Fed.

23(a)
and
R. Civ. P.
23,
as
the Class satisfies
the
requirements of Fed.
23(b)(3).
Class certification is also
appropriate
under Fed. R. Civ. P.

VI.
23(b)(2) with respect to injunctive relief.
COUNT I
51. 52.
BREACH OF EXPRESS CONTRACT
Plaintiff repeats and

Under the
re-alleges
all
preceding allegations as
if fully set forth herein.
Monthly Dues Membership Agreement, Defendant LA Fitness agreed

a
to
stop monthly dues billing when members provide
written notice of cancellation postmarked
20
days (or 30 days in the case of older agyeements) prior to the next billing date.
53.
Defendant's entire agreement is contained in its Class members.
Agreement with Plaintiff and

54.
Defendant breached its Contracts because Defendant continued to

23
charge Plaintiff
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26 of 45
and the Class for monthly membership dues
even
after
they timely notified Defendant of
cancellations.
55.
next
When Class members mailed in cancellation notices at least 30

LA Fitness
days prior to the
billing date,
routinely breached their Contracts by disregarding such cancellation
notices and 56.
charging them additional monthly dues.

Also, while the Contract expressly
states that "no further
billing will occur"

cases
after
timely mailing of cancellation notices,

charging Class members
57.
a
LA Fitness breached the Contracts in all
by
their prepaid last months dues.
Furthermore, while the Contracts do not require the use of any particular form for
notice of cancellation, LA Fitness breached its Contracts with Class members

to use
a
by requiring
them, in actuality,
particular pre-printed form for cancellation, which can only be

LA Fitness club.
obtained in person from

58.
an
Consideration existed for Defendant to
promptly terminate memberships,
as
Plaintiff and Class members
agreed to pay money to Defendant in exchange for Defendant's

monthly dues membership billing upon timely notice of
services and agreement to cancel cancelation.

59.
Plaintiff and Class members suffered and will continue to suffer damages
including, but not limited to, overcharges of monthly membership dues.

60.
Plaintiff and Class members continue to suffer harm,
as
LA Fitness has failed to
refund Class members for dues

their memberships.
charged to them after they sent in timely notices
of cancelation of
24
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VII.
COUNT II VIOLATIONS OF PENNSYLVANIA UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW, 73 P.S. 4 201-1 et seq. 61. 62.

As set forth
re-alleges
all
preceding allegations as if fully set forth herein.
above, Defendant LA Fitness's Monthly Dues Membership

automatic renewal and
Agreement
and the
Company's practices related to the duration,
cancellation of memberships is unfair, abusive and

a.
deceptive, by reason of the following:
Defendant LA Fitness's Monthly Dues Membership Agreement is deceptive and misleading because it is not a "monthly" contract. To the contrary, it obligates a new member to at least a three-month contract. LA Fitness requires payment of first and last month's dues up front, and then charges members at least one additional month of dues if they do not cancel 30 days before the next billing cycle, and also charges them last month's
prepaid dues in all
cases.
b.
Defendant LA Fitness's 30-day notification of cancellation requirement (and its current 20-day requirement) is unnecessary, dilatory, unfair, deceptive and intentionally constructed to allow LA Fitness to extract additional monthly dues from members long after they have requested that their monthly dues billing be stopped. Even though the Contract states that cancellation must be done by "mailing written notice of your cancellation request to" an LA Fitness post office box, the Company imposes additional requirements such as using the Company's pre-printed notice of cancellation form and the need to pick up the form by personally going to an LA Fitness club, to delay cancellation. Also, no e-mail address, telephone number or facsimile number are provided so a member can cancel more quickly when they no longer wish to continue their
monthly membership.
c.
Defendant LA Fitness's Monthly Dues Membership Agreement is misleading because it omits to state that members must use the Company's pre-printed notice of cancellation form to terminate membership. Instead, the Contract requires only "mailing written notice of your cancellation request to" an LA Fitness post office box. The Contract's "no further billing will occur" after timely mailing a notice of cancellation is misleading because even if a member sends a written notice of cancellation more than 30 days before the next billing date, LA Fitness bills members for at least one more month by applying the member's prepaid last month's dues to extend the Contract, regardless of whether the member wishes to or is able to
d.
representation that
25
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using its facilities, resulting in an overcharge of monthly membership dues and a cancellation penalty.
continue
e.
Defendant LA Fitness has regularly and systematically ignored members' cancellation requests and failed to stop monthly dues membership billing when timely notified of cancelations by Plaintiff and other Class members, resulting in an overcharge of monthly membership dues and a cancellation
penalty.
f. Defendant LA Fitness's Monthly Dues Membership Agreement contains an improper automatic renewal clause because it fails to provide a renewal option for continued membership that must be affirmatively accepted by the buyer at the expiration the Contract.
are
63. HCA
Such misleading practices
expressly forbidden by the HCA. Specifically,

by the buyer due to
false
or
2169 provides:
"A health club contract entered into
misleading information, representation or advertisement of the health club or its agents shall be
voidable at the
64.
option of the buyer."

As
a
result of the
foregoing acts
and practices, Defendant LA Fitness has violated
and continues to violate the HCA, 73 Pa. Cons. Stat. Ann. health clubs
65.
2161,
et seq.,
which
regulates
operating within the Commonwealth of Pennsylvania.

HCA
2175(a) provides that a violation of the HCA
shall constitute
violation of
the unfair trade practice under the

Law
Pennsylvania Unfair Trade Practices stating:
and Consumer Protection
("PA UTPCPL"), 73
P.S.
201-1 et seq.,
UNFAIR TRADE PRACTICES.-A violation of this act shall constitute a violation of the act of December 17, 1968 (P.L. 1224, No. 387), known as the Unfair Trade Practices and Consumer Protection Law, and shall be subject to the enforcement provisions and private rights of action contained in that act. 66.
Plaintiff, the Class and Defendant LA Fitness
are
"persons" within the meaning of
section
201-2(2) of the PA UTPCPL.

67. Section
201-2(4) of the PA UTPCPL proscribes, inter alia, engaging in any

26
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29 of 45
"unfair methods of competition"
or
"unfair
or
deceptive acts or practices" either at, prior to, or
subsequent to
68.
a consumer
transaction.
The actions of Defendant LA Fitness, set forth
above, constitute unfair methods of
competition and unfair and deceptive acts

69.
and practices under the PA UTPCPL.

on
Plaintiff and the Class justifiably relied
Defendant's unfair and
deceptive
Monthly Dues Membership Agreement and other representations concerning LA Fitness's

cancellation policies and
procedures when they entered into their Monthly Dues Membership
Agreements.
70.
Plaintiff and the Class did not know,
nor
could
they have known, that as

were
result
of Defendant's unfair and
deceptive acts
and practices, their Contracts
not
"monthly" attempted to
contracts, and they would incur additional charges for monthly dues when they
cancel their memberships.
71.
As
direct and
proximate result of Defendant LA Fitness's actions, Plaintiff and
the Class have suffered financial and other harm.

72.
By virtue of the foregoing violations of law, and pursuant to the PA UTPCPL,

are
Plaintiff and the Class

and costs of suit.
VIII.
entitled to
an
award of actual
damages, treble damages, attorneys'
fees
VIOLATIONS OF ALL OTHER STATES' CONSUMER PROTECTION LAWS

COUNT III 73. 74.

As set forth
re-alleges
all
preceding allegations as
above, Defendant LA Fitness's Monthly Dues Membership
Agreement and the Company's practices related to the duration, automatic renewal and
cancellation of memberships is unfair, abusive and
27
deceptive, by reason of the following:
Document 1
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30 of 45
a.
Defendant LA Fitness's Monthly Dues Membership Ageement is deceptive and misleading because it is not a "monthly" contract. To the contrary, it obligates a new member to at least a three-month contract. LA Fitness requires payment of first and last month's dues up front, and then charges members at least one additional month of dues if they do not cancel 30 days before the next billing cycle, and also charges them last month's prepaid dues in all cases. Defendant LA Fitness's 30-day notification of cancellation requirement (and its current 20-day requirement) is unnecessary, dilatory, unfair, deceptive and intentionally constructed to allow LA Fitness to extract additional monthly dues from members long after they have requested that their monthly dues billing be stopped. Even though the Contract states that cancellation must be done by "mailing written notice of your cancellation request to" an LA Fitness post office box, the Company imposes additional requirements such as using the Company's pre-printed notice of cancellation form and the need to pick up the form by personally going to an LA Fitness club, to delay cancellation. Also, no e-mail address, telephone number or facsimile number are provided so a member can cancel more quickly when they no longer wish to continue their
b.
monthly membership.
c.
Defendant LA Fitness's Monthly Dues Membership Agreement is misleading because it omits to state that members must use the Company's pre-printed notice of cancellation form to terminate membership. Instead, the Contract requires only "mailing written notice of your cancellation request to" an LA Fitness post office box.
"no further billing will occur" after notice of cancellation is misleading because even if a timely mailing member sends a written notice of cancellation more than 30 days before the next billing date, LA Fitness bills members for at least one more month by applying the member's prepaid last month's dues to extend the Contract, regardless of whether the member wishes to or is able to continue using its facilities, resulting in an overcharge of monthly
d.
The Contract's
representation that
membership dues and a cancellation penalty.

e.
penalty.
f.
Monthly Dues Membership Agreement contains

28
Document 1
Filed 05/18/10
Page
31 of 45
improper automatic renewal clause because it fails to provide a renewal option for continued membership that must be affirmatively accepted by the buyer at the expiration the Contract.
an
75.
As
result of the
foregoing acts
and practices, Defendant LA Fitness has violated
and continues to violate statutes

Fitness does
regulating health and fitness
clubs in the states in which LA
business, including, without limitation, Arizona, California, Connecticut, Florida,

New
Georgia, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Minnesota, New Jersey,

York, Ohio, Oregon, Pennsylvania, Texas, Virginia, Washington, Washington,
Wisconsin.
76. D.C. and
The actions of Defendant LA Fitness, set forth above, constitute unfair methods of
and
competition and unfair and deceptive acts
practices in violation of the consumer protection
laws of the states in which LA Fitness does business.

77.
Plaintiff and the Class justifiably relied
on
Defendant's unfair and
deceptive
Fitness's
Monthly Dues Membership Agreement and

cancellation policies and
other representations
concerning LA
procedures when they entered into their Monthly Dues Membership
Ag-eements.
78.
Plaintiff and the Class did not
know,
nor
could
they have known, that as a result
of Defendant's unfair and
deceptive acts
and
practices, their Contracts were not "monthly"
contracts, and they would incur additional charges for monthly dues when they
attempted to
cancel their memberships and followed the written notice procedure set forth in the Contract.
79.
As
a
direct and
proximate result of Defendant LA Fitness's actions, Plaintiff and
the Class have suffered financial and other harm.

80.
By virtue of the foregoing violations of law, and pursuant to the consumer

29
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Page
32 of 45
protection laws of the states in which Defendant LA Fitness does business, Plaintiff and the
Class
suit.
IX.
are
entitled to
an
award of actual
damages, treble damages, attorneys'
fees and costs of
COUNT IV 81.
82. 83.
BREACH OF DUTY OF GOOD FAITH AND FAIR DEALING

At all times material
re-alleges all preceding allegations as

Contract.
hereto, Plaintiff has performed fully pursuant to the
There is
duty of good faith and fair dealing implied in the Monthly Dues
Membership Agreement between Plaintiff and Defendant.

84. in the
Defendant LA Fitness has breached its
duty of good faith
and fair
dealing implied
Monthly Dues Membership Agreement,
and thus, withheld from Plaintiff and the Class the of the
benefits of the
Monthly Dues Membership Agreement, by reason

a.
following:
Defendant LA Fitness's Monthly Dues Membership Agreement is deceptive and misleading because it is not a "monthly" contract. To the contrary, it obligates a new member to at least a three-month contract. LA Fitness requires payment of first and last month's dues up front, and then charges members at least one additional month of dues if they do not cancel 30 days before the next billing cycle, and also charges them last
month's
b.
prepaid dues in all
cases.
Defendant LA Fitness's 30-day notification of cancellation requirement (and its current 20-day requirement) is unnecessary, dilatory, unfair, deceptive and intentionally constructed to allow LA Fitness to extract additional monthly dues from members long after they have requested that their monthly dues billing be stopped. Even though the Contract states that cancellation must be done by "mailing written notice of your cancellation request to" an LA Fitness post office box, the Company imposes additional requirements such as using the Company's pre-printed notice of cancellation form and the need to pick up the form by personally going to an LA Fitness club, to delay cancellation. Also, no e-mail address, telephone number or facsimile number are provided so a member can cancel more quickly when they no longer wish to continue their
monthly membership.
c.
Monthly Dues Membership Ageement is

30
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33 of 45
misleading because it omits to state that members must use the Company's pre-printed notice of cancellation form to terminate membership. Instead, the Contract requires only "mailing written notice of your cancellation
request to"
d.
an
LA Fitness
post office box.
"no further billing will occur" after timely mailing a notice of cancellation is misleading because even if a member sends a written notice of cancellation more than 30 days before
The Contract's
representation that
the next billing date, LA Fitness bills members for at least one more month by applying the member's prepaid last month's dues to extend the Contract, regardless of whether the member wishes to or is able to continue using its facilities, resulting in an overcharge of monthly membership dues and a cancellation penalty.
e.
penalty.
f. Defendant LA Fitness's Monthly Dues Membership Agreement contains an improper automatic renewal clause because it fails to provide a renewal option for continued membership that must be affirmatively accepted by the buyer at the expiration the Contract.
a
85.
As
direct and proximate result of Defendant's breaches of the
duty of good faith
and fair
X.
dealing, Plaintiff and the Class have suffered substantial monetary damages.
UNJUST ENRICHMENT
COUNT V 86. 87.

In the
re-alleges all preceding allegations as
alternative, Defendant LA Fitness has been unjustly enriched through the that,
as
collection of monthly membership dues

88.
alleged herein, it was not entitled to collect.

of, and to the detriment of,
Defendant has been unjustly enriched at the expense
Plaintiff and each member of the Class by
improperly charging monthly membership dues as
alleged herein. Through its practices, Defendant charges monthly dues for services which
members do not
use.
Plaintiff and each member of the Class

31
are
therefore entitled to
recover
Document 1
Filed 05/18/10
Page
34 of 45
from Defendant,
as
restitution, all money they paid for improper monthly membership dues,
as a
any
benefit received by Defendant
result of such
charges, plus interest thereon
from the time of
payment.
89.
A constructive trust should be established
over
the funds created by the
aforementioned payments, fees,
charges, interest and benefits generated in connection with the

The funds
are
improper billing of monthly membership dues.

member and for the Class
as a
clearly identifiable for each Class
whole.
Accordingly, restitution and disgorgement of such
amounts should be ordered.
XI.
JURY TRIAL DEMANDED
90.
XII.
Plaintiff hereby demands
trial
by jury on all
issues
so
triable.
PRAYER FOR RELIEF
WHEREFORE, Plaintiff, individually and
on
behalf of all others
similarly situated,
respectfully requests that the Court enter an Order:

a.
Certifying the proposed Class under Fed.
R. Civ. P. 23 and
appointing
Plaintiff and Plaintiff s counsel to represent the Class;

b.
Finding that Defendant is liable under all legal claims asserted herein for its improper billing of monthly membership dues, as alleged herein; Ordering injunctive relief, including but not limited to changes to the Monthly Dues Membership Ageement including reducing the notification period required to cancel membership from 20 days to 5 days and providing members with alternative methods to transmit their cancellation notifications, including without limitation, in-person at LA Fitness clubs, or via e-mail, or facsimile, or on the Internet; Awarding damages to Plaintiff and Class members under the common law and statutory theories alleged herein, including compensatory damages, consequential damages, treble damages, punitive damages, and any other damages provided under relevant laws; Declaring that Defendant has breached the Monthly Dues Membership
32
c.
d.
e.
Document 1
Filed 05/18/10
Page
35 of 45
Agreements and allowing Class members to terminate those Contracts;

f.
g.
Awarding litigation costs
and
attorneys' fees;
Awarding pre and post judgment interest; and
h.
Awarding any other legal
or
equitable relief as justice requires.

BERGER &
Dated: May 18, 2010
MONTAGUE, P.C.
By
/s/ Sherrie R. Savett Sherrie R. Savett (PA Bar No. 17646) Michael T. Fantini (PA Bar No. 57192) Barbara A. Podell (PA Bar No. 28583) Eric Lechtzin (PA Bar No. 62096)
1622 Locust Street Philadelphia, PA 19103
Tel:
Fax:
(215) 875-3000 (215) 875-4636
Counsel for Plaintiff and the Class
33
Document 1
Filed 05/18/10
Page
36 of 45
EXHIBIT A
2:10-cv 02
LAIFITNESS.
MEMBERSHIP AGREEMENT "zti-ivintihijaument 1 I Filed 05/
1111111k
FIRST NAME
MGR. INT
LAST NAME
STREET ADDRESS.
APT NO.
CtTY
STATE
ZIP CODE
011101.1111111110
BUSINESS PHONE E.MAIL: EXT. HOME PHONE
CELL/OTHER PHONE (MAX 4)
MUST LIVE AT SAME IMMEDIATE FAMILY MEMBERS INCLUDED ON MEMBERSHIP

AS MEMBER. ADDRESS AND USE SAME SOURCE OF PAYMENT
OFFICE USE ONLY METHOD It is agreed by and between L.A. Fitness International, LLC PAYMENT ELITE L.A. Fitness') and you, the undersigned Bup- (individually, if of the Member ZICC INITIATION FEE 149.00 li34 you are the Member, and/or as agent or guardian Y START u from, or res_ponsible paq, that you are purchasing a membership PLOW DUES FIRST/LASTMONTHS' Ftness according to the terms on the front and reverse side LA. t EICA.SH 69.98 DUES of this Membership Agreement and the current Membership 13 BEST VALUE DC H K Poficies and Club Rules and Regulations CAgreementi. PREPAID DUES (P1F)$ PREMIER. F-1 PAID IN FULL (PIP) MEMBERSHIP: EXPIRES. 218.98 0E-0K '1_...._ 1..__I ANNUAL RENEWAL: (EXPIRES SAME DATE) EASY T Plus Applicable Sales Tax SERVICES DUES 0 SALES TAX
WSW STARSUBTOTAL D'

[(LOW
TOTAL DUE TOTAL PAID
BALANCE DUE
218, 98
pgq
LeM
+ APPLICABLE 34.99 MONTHLY DUES= TAX. If this box Is checked your dues will be billed monthly funds transfer (*EFT). IF THERE ARE ANY by electronic FAMILY ADD-ONS TO THIS AGREEMENT, BE ADVISED THAT IF YOU CHOOSE IN THE FUTURE TO PAY FOR ANY
U BEST VALUE
RACQUETBALL
TOWEL SERVICE KID'S KLUB
N/C
mo.
CLASSIC
219
ITO.
RIO.
SUCH FAMILY ADD-ONS THROUGH MULTIPLE ACCOUNTS
ACCOUNT ADDED. IF YOU MAKE THIS CHOICE AFTER THIRTY (30) DAYS FROM PURCHASE, A SPLIT FEE OF $19 WILL BE CHARGED PER ACCOUNT ADDED.
WITHIN THIRTY (30) DAYS FROM PURCHASE, YOU MUST PAY THE FULL INITIATION FEE AS ADVERTISED FOR A CURRENT "EASY START" MEMBERSHIP FOR EACH
0 EASY START 0 LOW DUES 0 BEST VALUE 0 SINGLE CLUB

once a
-0.02
CORPORATION NAME:
YOUR EFT BILLING DATE: Your monthly dues will be billed and collected each month thereafter until terminated in the manner provided below.
month
beginning on
10-01-04
and
continuing
on
the same
day
f th, i1, 1). yo.0 ii).7 1,,+)4,4,I, F, .1 l!I oa ce- o ri thl y 1, i t, l T i How to stop mon thl. Fil tqlg. II, Jr' TP. Nd11.e o r, a,..DP q11.PL-.1e 2P You C, y.,, t?, Send tl)e to yovrardit of your taquest at 1:2 Ict ill FT and *cfue's throagh rur Cancel your fnember-, h[i I,, F Wq1ding y,ratter? flPtIC the notice IS pottbriq, d at rly1 day prioi priohkrOurbtllingliate: date no t, 't 30-da)/8 nextbilling QV 9261 9,-417a II viytjen notice to LA Fitnese;(4., Box.. 541)v, liwIQ,les5 tb6rll'.3 caso;, YOLii. M* neKt d6Ys.prO to, 014no billing r(-1?-lP cr I' or Plo're-hilliod will occur. In,bp:date. ftirk billlf:Ig'ii'i(ill gcct)r,l1rtri:e=n-Oti6-1S Postrnailk0 on sIgn a, ).1aMmonth!t, prepaid cipep4kIll dXteh:elyourrnecubprshilp'pkatinn by an arimioryi days or 1,, 6_.pandino your original authorizes L.A. Fitness to make periodic charges to or withdrawals from *EFT Request. Buyer (individually and as agent or guardian of Member) nereby due L.A. Fitness
account hereafter used for payment of any sums the account used to pay the initial payment described above, or (b) a replacement if not paid by the due date, or for any other use by Buyer of L.A. Fitness under this Agreement, including but not limited to Buyer's balance due the 1st or 15th of the month following your membership sign up facilities or services (the EFT), as follows: Monthly membership dues will begin on either account or debits are otherwise not accepted, L.A. Fitness may date, as described above. In the event sufficient funds are not available in Buyer's the rejected amount plus a $10.00 service charge may be added to Buyer's next regularly resubmit the charge. If the resubmittal is returned uncollected, and withdrawals under the EFT, but Buyer waives the right to scheduled debit. Buyer understands that Buyer is entitled to notice of all varying charges of the balance due described notice for charges or withdrawals made with respect to any uncollected monthly dues payments or portions full receive.prior or withdrawals. Buyer understands that Buyer is in above and the corresponding service charges, both of which Buyer agrees are not vatying charges Fitness receives written notice of termination of this Agreement and control of Buyer's payment and that this EFT Request will remain in effect until L.A. information, a 30-day notice is required. Buyer may timely notify has a reasonable opportunity to act on that notice. If you decide to chang_e your billing but such notification will not otherwise affect this Agreement and the financial institution in control of Buyer's account to terminate this EFT Request, Automated Clearing House transactions to Buyer's account must comply with of the Buyer's obligations herein. Buyer acknowledges that the origination the provisions of US Law.
(a)
BUYER'S RIGHT TO CANCEL certified mail, return receipt requested, written If you wish to cancel this contract, you may cancel by delivering or mailing by do not wish to be bound by the contract and notice to this health club or the Club of Enrollment. The notice must say that you and receive a copy of this contract. must be delivered or mailed before 12 midnight of the third business day after you sign or submitted by personal delivery to the The notice must be mailed to L.A. Fitness, P.O. Box 54170, Irvine, CA 92619-4170 shall refund to buyer all monies including any Club of Enrollment. Upon receipt of notice of a 3-day cancellation, L.A.Fitness this contract if you signed it before the health initiation fee paid under the Agreement In some cases you may also cancel become permanently disabled or if you move if club facility was completed, if the club moves or goes out of bu.gness, you of the contract price. If the health club goes from the area. If you cancel, the health club may be entitled to a certain portion letter of credit under which you are entitled to collect. out of business or refuses to give you a refund, there may be a bond or Act is by the Attorney General of the Commonwealth For details, read your contract carefully. Enforcement of the Health Club club is located. You may also bring a private cause of Pennsylvania or the district attorney of the county in which the health Protection or your local district attorney. of action. If your rights are violated, you may contact the State Bureau of Consumer NOTICE OF CLAIMS AND DEFENSES claims and defenses which the debtor could assert against the seller of Any holder of this contract or note is subject to all the proceeds hereof. Recovery hereunder by the debtor shall not exceed goods or services obtained pursuant hereto or with amounts paid by the debtor hereunder. that Buyer is of legal age, has received a filled-in and completed copy of this By signing this Agreement Buyer acknowledges services understands the entire Agreement including purchased, has identifying the membership type and the Release and Waiverread and and Indemnity, all other Additional Terms Agreement of Liability but not limited to the EFT Request (if applicable) and Club Rules and Regulations provided and Conditions on the reverse side hereof and the current Membership Policies other agreement or understanding exists herewith. This Agreement constitutes the entire agreement of the parties and no other than those and L.A. Fitness. L.A. Fitness has made no express or implied warranties or representations that between Buyer L.A. Fitness recommends you consult set forth in this Agreement to induce Buyer to enter into this Agreement expressly the original Agreement and any to beginning any exercise or weight loss program. Any conflict between your physician prior the original Agreement copy of the original Agreement shall be controlled by
Executed at: (Club of Enrollment)
HUNTINGDON VALLEY
1791495
Pennsylvania on
MEMBER'S
2020 COUNTY LINE RD.,
By
LA. FITNESS EMPLOYEE SIGNATURE
EMP. NUMBER
BUYER'S SIGNATURE
19000
HUNTINGDON VLY, PA,
1Al24PN 2/04
Document 1
Filed 05/18/10
Page
38 of 45
EXHIBIT B
Document 1
Filed 05/18/10
Page
39 of 45
LAIFITNESS.
NAME
BAR CODE
MEMBERSHIP AGREEMENT
E-MAIL
ADDRESS
BUSINESS PHONE
#1 FAO NAME
HOME PHONE
#2 FAO NAME
CELL/OMER PHONE
#3 FAO
IMMEDIATE FAMILY MEMBERS INCLUDED ON MEMBERSHIP MUST UVE AT THE SAME ADDRESS AND USE THESAME SOURCE OF PAYMENT AS MEMBER. (MAX4)
NAME
PAYMENT TYPE
It is agreed by and between LA. Fitness International, LLC ('LA. Fitness") and you, the undersigned Buyer (individually, if you are the Member, and/or as agent or guardian of the Member or responsible party), that you are purchasing a membership from LA. Fitness according to the terms on both pages of this Membership Agreement and the current Membership Policies and Club Rules and
PAYMENT
iNmATioN FEE
DATE
ACCT. NO.
EXPIR. DATE
AMOUNT
Regulations ("Agreement".
PAID IN FULL (PIF) MEMBERSHIP: EXPIRES. ANNUAL RENEWAL (EXPIRES SAME DATE) Plus Sales Tax
FIRSTLAST
MONTHS DUES PREPAID DUES 5
Applicable
(FIF)
SUBTOTAL
MONTHLY DUES Your dues will be + APPLICABLE TAX. SALES TAX billed monthly by electronic funds transfer to your bank account ("EFT") or, TOTAL DUE credit card ("CC") (collectively, 'EFT/CC"). S,^5.,,, -S1,:a."Z-7.
SERVICES
u
:I
if
LIMITED ACCESS: If checked, no entry/access after 4:00 pm, Mon-Thurs. there are any Family Add-Ons ("FAO") to this Agreement be advised that if you choose in the future to pay for any such FAOs through multiple accounts, a onetime split fee of $79 will be charged per account added. Additionally, if a FAO splits off this Agreement, you agree and understand that the amount of your preauthorized Monthly Dues will be decreased by the corresponding Monthly Dues amount of the FAO being removed from your Agreement. I.MA I t: Your
.z-
.Z.4;e, rf,
-1,
TOTAL PAID awmE DuE wawa:moo Type
i..:,.
:4-14,
GUEST PRIVILEGES
me. me.
1-ci
0 FAABLY ACCESS 0 RACQUETBALL 13 TOWEL/SERVICE 0 KIDS KLUB

S
mo
mo
mo
YUUK tl- I /UU

on
Buyer agrees that LAF may provide Buyer's personal contact information to independently operated businesses within the Club and Buyer consents that such businesses may contact Buyer Oncluding by phone) concerning available services or promotions. Buyer hereby consents to the use of an electronic signature to record Buyer's commitment to the terms of this Agreement. By signing this Agreement, Buyer acknowledges that Buyer Is of legal age, has received a filled-in and completed copy of this Agreement has read and understands the entire agreement including but not limited to the *EFT/CC Request (if applicable), the Release and Waiver of Liability and Indemnity, all other Additional Terms and Conditions on the reverse side hereof. L.A. Fitness recommends you consult your physician prior to beginning any exercise or weight loss program.
Executed at:
mail, return receipt requested, written notice to this health club or the Club of Enrollment. The notice must say that you do not wish to be bound by the contract and must be delivered or mailed before 12 midnight of the third business day after you sign and receive a copy of this contract. The notice shall be sent to L.A. Fitness International, LLC, P.O. Box 54170, Irvine, CA 92619-4170 or submitted by personal delivery to the Club of Enrollment. Upon receipt of notice of a 3-day cancellation, L.A. Fitness shall refund to buyer all monies including any initiation fee paid under the Agreement. In some cases you may also cancel this contract if you signed it before the health club facility was completed, if the club moves or goes out of business, if you become permanently disabled or if you move from the area. If you cancel, the health club may be entitled to a certain portion of the contract price. If the health club goes out of business or refuses to give you a refund, there may be a bond or letter of credit under which you are entitled to collect. For details, read your contract carefully, Enforcement of the Health Club Act is by the Attorney General of the Commonwealth of Pennsylvania or the district attorney of the county in which the health club is located. You may also bring a private cause of action. If your rights are violated, you may contact the State Bureau of Consumer Protection or your local district attorney. NOTICE OF CLAIMS AND DEFENSES: Any holder of this contract or note is subject to all claims and defenses which the debtor could assert against the seller of goods or services obtained pursuant hereto or with the proceeds hereof. Recovery hereunder by the debtor shall not exceed amounts paid by the debtor hereunder.
HOW TO CANCEL YOUR MONTHLY DUES MEMBERSHIP: You may cancel your membership and the continued billing of monthly dues through EFT or CC by mailing written notice of your cancellation request to: LA Fitness, P.O. Box 54170, Irvine, CA 92619-4170 or such other address designated by LA Fitness. A cancellation notice postmarked a minimum of 20 days prior to your next Billing Date will result in no further billing of monthly dues. .A.1/4 cancellation notice postmarked less than 20 days prior to your next Billing Date will result in one more monthly dues billing. Then, your last month's prepaid dues.will be applied for your final monthly dues payment, extending your membership at least an additional 30 days, at which time your membership will expire. After this candellation notice, you will have continued health studio ("Club) access until your membership has expired. *EFT/CC REQUEST. To the extent permitted by law, you hereby authorize us to initiate separate EFT/CC charges from the account you Identified and/or any replacement or substitute account (the "Account') for the following amounts: (1) the Balance Due shown above, if not otherwise paid within 60 days after the date of this Agreement; (2) your monthly dues as described above, prior to cancellation or freeze, if you are a Monthly Dues Member; (3) any one-time or monthly fees we charge if you request a freeze of your Membership prMleges (currently ranging from $5-$20 per month, or a one-time fee ranging from $15-$100, dependihg on length, but subject to change); (4) your monthly dues, or a pro-rated portion thereof on reactivation of your membership privileges following any freeze; (5) a $10 return fee for any EFT/CC charge that is returned unpaid; and (6) any other fee for Personal Training Services or other goods or services we provide you from time to time if you instruct us to bill the charge to your Account on file. Authorized EFT/CC payments may be separately initiated or, to the extent permitted by law, combined with other authorized EFT/CC payments. You may cancel your EFT/CC authorization for the payment of monthly dues by giving us written notice of termination. It will only take effect after we have had a sufficient time to allow us and your financial institution, using commercially reasonable (but not extraordinary) efforts, to act on the notice. BUYER'S RIGHT TO CANCEL: If you wish to cancel this contract, you may cancel by delivering or mailing by certified
that same day each month thereafter until terminated in the
monthly dues
will be
automatically
billed and collected
electronically once a month beginning on
and
conttnuing
manner
provided below.
(Club of enrollment)
Pennsylvania
DATE MEMBER'S BUYER'S SIGNATURE LA. FITNESS EMPLOYEE ID NUMBER When you provide a check as payment of any amount due under this Agreement, you authorize LA Fitness either to use information from your check to make a one-time electronic fund transfer from the account on which the check is drawn or to process the payment as a check transaction. When LA Fitness uses information from your check to make an electronic fund transfer, funds may be withdrawn from the account on which the check is drawn as soon as the same day LA Fitness receives your payment and you will not receive your check back from your financial institution.
Page 1
of 3
LA-PA 7/09
Case 2:10-cv-02328WIN4DaamveAND INFIGIVIZOES10
Except as otherwise stated herein, all notices to L.A. Fitness hereunder shall be mailed (certified or registered, return receipt requested) to P.O. BOX 54170, Irvine, CA 92619-4170 or to such other address designated for notice as posted at LA. Fitness club facilities. All notices to member hereunder shall be mailed to the address member has provided in this Agreement or to such other address which member agrees to notify LA Fitness of in writing and in accordance with this paragraph. If any part of this Agreement is held by a court of competent jurisdiction to be void or unenforceable, the remainder of the terms and provisions of this Agreement shall remain in full force and effect and shall not be affected. You agree to give us notice if your billing or Account information changes and you authorize us to seek and obtain information about changes in Account numbers and status from third parties, such as your bank or our credit card processor. If you decide to change your billing information, a 30-day notice may be required.
You Qndividually, if you are the Member, and as agent and/or guardian of Member) agree that Member, and Member's family members, and any guests and invitees shall be bound by this Agreement and the LA Fitness Membership Policies and Club Rules and Regulations provided herewith for the usage of LA. Fitness Club facilities. You agree that the Membership Policies and Club Rules and Regulations may be revised, supplemented or amended in the sole and absolute discretion of LA. Fitness and any such changes shall become immediately effective upon posting in the LA. Fitness Club facilities.
It is guaranteed that your monthly membership dues will not increase for three years from the date of enrollment You agree to pay dues in advance, for the first and last months of Membership. Termination of Membership will be effective only if the procedures described herein are followed. Failure by any Member to use the Membership wit not relieve you of your payment obligation regardless of the circumstances, except as provided for below. If any payment of dues or other charges is not made on time, LA Fitness may, but is not obligated to, suspend or terminate your Membership. No refunds shall be made for Membership dues paid, except as specifically provided in this Agreement In no event shall this Agreement require payments or financing or extend for a period that would give rise to a retail installment contract or be greater than that permitted under the laws of the State of Pennsylvania.
Page 40 of 45
IMPORTANT: RELEASE AND WAIVER OF LIABILITY AND INDEMNITY. You hereby acknowledge and agree that use by Member and/or by Members minor children of LA. Fitness' facilities, services, equipment or premises, involves risks of injury to persons and property, including those described below, and Member assumes full responsibility for such risks. In consideration of Member and Member's minor children being permitted to enter any facility of L.A. Fitness (a "Club") for any purpose including, but not limited to, observation, use of facilities, services or equipment, or participation in any way, Member agrees to the following: Member hereby releases and holds LA. Fitness, its directors, officers, employees, and agents harmless from all liability to Member, Member's children and Members personal representatives, assigns, heirs, and next of kin for any loss or damage, and forever gives up any claim or demands therefore, on account of injury to Member's person or property, including injury leading to the death of Member, whether caused by the active or passive negligence of L.A. Fitness or otherwise, to the fullest extent permitted by law, while Member or Member's minor children are in, upon, or about LA Fitness premises or using any L.A. Fitness facilities, services or equipment. Member also hereby agrees to indemnify LA. Fitness from any loss, liability, damage or cost LA. Fitness may incur due to the presence of Member or Members children in, upon or about the LA. Fitness premises or in any way observing or using any facilities or equipment of LA. Fitness whether caused by the negligence of Member(s) or otherwise. You represent (a) that Member and Member's minor children are in good physical condition and have no disability, illness, or other condition that could prevent Member(s) from exercising without injury or impairment of health, and (b) that Member has consulted a physician concerning an exercise program that will not risk injury to Member or impairment of Members health. Such risk of injury includes (but is not limited to): injuries arising from use by Member or others of exercise equipment and machines; injuries arising from participation by Member or others in supervised or unsupervised activities or programs at a Club; injuries and medical disorders arising from exercising at a Club such as heart attacks, strokes, heat stress, sprains, broken bones, and tom muscles and ligaments, among others; and accidental injuries occurring anywhere in Club dressing rooms, showers and other facilities. Member further expressly agrees that the foregoing release, waiver and indemnity agreement is intended to be as broad and inclusive as is permitted by the law of the State of Pennsylvania and that if any portion thereof is held invalid, it is agreed that the balance shall, notwithstanding, continue in full force and effect. Member has read this release and waiver of liability and indemnity clause, and agrees that no oral representations, statements or inducement apart from this Agreement have been made.
LA. Fitness makes no warranties or representations, express or implied, other than those set forth herein, and your sole and exclusive remedy in the event of any breach of this Agreement shall be cancellation of this Agreement. IN NO EVENT SHALL LA. FITNESS BE UABLE FOR ANY SPECIAL INCIDENTAL OR CONSEQUENTIAL DAMAGES. In addition to the other dues, fees and charges provided for in this Agreement, you agree to pay a $10.00 service fee for any item or direct charge memo not paid by your financial institution or account when presented for payment by LA. Fitness.
Any active membership in good standing may be placed on an inactive status (frozen) pursuant to LA. Fitness' current policy. L.A. Fitness may assign this Agreement, including Members payment obligation herein. If the Club facility temporarily closes for 30 days or less, the member shall receive an extension of the Membership term equal to the period during which the Club facility is closed. If the Club facility closes for more than 30 days, the Member is entitled to cancel the Membership if LA. Fitness fails to t provide a comparable facility within ten miles of the location designated herein. Upon receipt of notice of cancellation, LA Fitness shall refund the Member all moneys paid in excess of an amount computed by dividing the full contract price, including any initiation fee, by the number of weeks in the contract term and multiplying the result by the number of weeks elapsed in the contract term. LA. Fitness, in its sole and absolute discretion, reserves the right to close any Club facility and/or change existing facility rules, regulations, conditions, guidelines, club facilities, classes, programs and hours of operation. Classes, Club facilities, parking and equipment are available subject to demand and may be crowded at peak hours or may be discontinued or times changed if demand fluctuates. Other clubs may be built acquired, reopened or converted after the date of your Agreement which may be excluded from your membership at our sole discretion. The Member may extend the Membership term of this contract at no additional cost for a period of time equal to the duration of a disability where the Member has a disability which precludes the Member from using one-third or more of the Club facilities for a period of less than six months and the disability is verified by a physician. The Member or Member's legal representative may cancel the contract if the Member dies or becomes permanently disabled. A permanent disability means a condition which precludes the Member from using one-third or more of the Club facilities for six months or more and the condition is verified by a physician. Upon receipt of notice of cancellation, LA Fitness shall refund the Member all moneys paid in excess of an amount computed by dividing the full contract price, including any initiation fee, by the number of weeks in the contract term and muttiplying the resutt by the number of weeks elapsed in the contract term less a fee of $100 or, if more than half the life of the contract has expired, a fee of $50. In the case of a permanent disability L.A. Fitness may require the Member to submit to a physical examination by a physician agreeable to the Member and LA. Fitness. The additional cost of the examination shall be borne by L.A. Fitness.
If the Member moves more than 25 additional miles from the Club facility, and LA. Fitness is unable to transfer the Agreement to a comparable facility within 5 miles of the Member's new residence Member may cancel this Agreement and upon receipt of notice of cancellation, LA. Fitness shall refund to the Member all moneys paid in excess of an amount computed as of the date of relocation by dividing the full contract price, including any initiation fee, by the number of weeks in the contract term and multiplying the resutt by the number of weeks elapsed in the contract term, less a fee of $100, or, if more than haft the life of the contract has expired, less a fee of $50. The Member shall notify LA Fitness of cancellation in writing, by certified mail, return receipt requested, or by personal delivery to the address specified for notices in this Agreement or the Club of Enrollment. All cancellation refunds shall be paid within 40 days of receipt of the notice of cancellation. If the Member has executed a credit, lien or automatic funds transfer agreement with LA. Fitness to pay for services, any negotiable instrument or credit or lien agreement executed by the Member shall also be returned and any automatic transfer shall be canceled within 40 days after the cancellation. The Member may cancel this contract without penalty within three business days of its signing and the buyer receiving a fully executed copy thereof. Upon receipt of notice of cancellation, LA. Fitness shall refund to the buyer all moneys, including an y initiation fee.
Agreement at any time. Until LA. Fitness has provided the Member with a signed copy of this Agreement written in full compliance of Section 2163 of the Pennsylvania Health Club Act, the Member may cancel the Agreement at any time. In the event Member, or any of Member's family or an invitee of Member, violates any of the terms or provisions of this Agreement or the LA. Fitness Membership Policies and Club Rules and Regulations, L.A. Fitness may suspend their right to use the Club facilities and the services until such time as Member, or Members family Members, have abided by and fully complied with the terms and provisions of this Agreement and the LA. Fitness Membership Policies and Club Rules and Regulations. Member shall not be entitled to any refund, credit or abatement of Membership dues for the period during which the Membership was suspended. If Member, or Member's family or an invitee of Member, thereafter violates any of the terms and provisions of this Agreement or the LA. Fitness Membership Policies and Club Rules and Regulations, L.A. Fitness may terminate Member's Membership and the right to use the LA. Fitness facilities without reimbursement LA. Fitness also reserves the right to terminate the Membership for any reason whatsoever upon written notice and a refund of the pre-paid dues, if any.
If the L.A. Fitness Club is not completed and operational on the date this Agreement is executed, the following items apply: A) the estimated date the Club facility will be open and available for use will be within 12 months from the date this Agreement is executed B) the Member may cancel the Agreement without penalty and receive a full refund, including the initiation fee, if the Club facility is not open and operational by the date specified in (A) above, and C) the Member may cancel the Agreement without penalty and receive a full refund, including any initiation fee, within three business days after the Club facility opens or the Member receives notice of its opening, whichever occurs later.
If the Member sustains any loss or damage as a result of the breach of contract or bankruptcy by LA. Fitness, the Member may file a claim with the surety, Bank of the West, 1977 Saturn Street, SC-MPK-02-G, Monterey Park, CA 91755 and if the claim is not paid, the Member may bring an action based on the Letter of Credit and recover against the surety. My claim should be filed no later than six months from the date on which the injury occurred. The aggregate liability of the Letter of Credit to all persons for all breaches of the conditions of the Letter of Credit shall in no event exceed the amount of the Letter of Credit. If claims filed exceed the amount of the Letter of Credit, the surety shall distribute the amount of the Letter of Credit as a standard percentage of the amount claimed by all buyers seeking relief. In the case of a letter of credit that has been filed with the Director of the Bureau of Consumer Protection, the buyer shall bring action against the heath club and thereafter submit the final judgment he obtains to the Director requesting payment under the terms of the letter of credit Until LA. Fitness has provided the Member with a signed copy of this Agreement written in full compliance of Section 2163 of the Pennsylvania Heafth Club Act, the Member may cancel the
Page
2 of 3
LA-PA 7/09
Document 1
Filed 05/18/10
Page 41 of 45
LA FITNESS MEMBERSHIP POLICIES AND CLUB RULES AND REGULATIONS

The following Membership Policies and Club Rules and Regulations ("Rules and Regulations") are a part of the Membership Agreement You, the Member, agree to abide by the Rules and Regulations and other rules as posted which may vary depending on the club location and services offered. LA Fitness may change the Rules and Regulations without notice at any time. LA Fitness will post any such changes at the clubs. The Rules and Regulations and the individual club rules apply to Members as well as their family members, guests and invitees (collectively, "guests") while in, on or about the club premises.
Membership types and services are subject to change without notice and are not necessarily available at all clubs. If a service is eliminated and additional fees were charged for that service, the fees will be discontinued upon Member's request No fee reductions will be made if services that are provided at no additional charge are discontinued. Club classifications are subject to change without notice or fee adjustment
MEMBERSHIP TYPES
Signature: A multi-state membership valid at LA Fitness dubs in all states, including "Signature' dubs. Refer to vnvw.lafitness.com for current "Signature" dub listings and locations. Future club locations and brands may be excluded from this membership at the discretion of LA. Fitness. Premier: A multi-dub membership valid at LA Fitness dubs in all states, except "Signature clubs and dubs located in the state of New York. Refer to www.lafitness.com for current club listings and locations. Future club locations and brands may be excluded from this membership at the discretion of L.A.
Fitness. Premier Single State: A multi-club membership valid only at LA Fitness dubs in the state of enrollment, excluding "Signature" dubs. Refer to www.lafitness.com for current club listings and locations. Future club locations and brands may be excluded from this membership at the discretion of L.A. Fitness.
Single: A single club membership valid only at the club of enrollment. Limited Club Access: If this box is checked on page 1, this membership does Thursday after 4:00 p.m.
not permit access to the health club
facility on Monday, Tuesday, Wednesday or
SERVICES
If this service is purchased, it entitles the member to use racquetball courts (subject to club reservation policies and court availability) at any LA Fitness club that offers racquetball courts where member has a valid LA. Fitness membership. Kid's Klub: If Kid's Klub services are purchased, the parent or guaglian must check the child in and out of Kid's Klub and the parent or guardian who checks the child in must check the child out Children may remain in Kid's Klub for a maximum of two hours and the parent or guardian must remain on L.A. Fitness' Klub. premises at all such times. Please check with the front desk for additional rules, policies and applicable fees concerning Kid's Kids' Klub services Family Access: If "Family Access" is checked under the "Services" heading on page 1, the membership you have purchased includes use of the for up to 2 children, during the times and pursuant to the current rules such services are made available at the dub (currently for ages 3 months 12 years). 14-18 to use the club with that adult, provided the paying adult Additionally, the paying adult member(s) on this membership may bring in a family member aged member is at the club with the family member at all times. However, this guest family access is not available after 5:00 p.m. Monday through Thursday. If "Guest Privileges" is checked on page 1, Member may bring in up to two guests, age 14 or older, to use the club with Member. Guest
Racquetball Courts:
Privileges:
RULES AND REGULATIONS

1.
license or other government issued picture Upon entering the club, all Members are required to present their active membership card or driver's identification. If you do not have your Membership card or proper identification, LA Fitness may prohibit your use of the facilities or may charge a guest fee for use of the facilities for that day.
Rules and Regulations. All guests must prove that guests must sign a medical and injury release form prior to using the club facilities and follow all member guest who is at least 14 years of age and are at least 18 years of age or older unless they have paid a guest fee or a Platinum they for accompanied by a parent or legal guardian. All guests using a Guest Pass may only do so one time during any six month period and must arrange All
a
2.
subject to change without notice. LA Fitness may restrict the privileges in its sole and absolute discretion.
3.
brief tour of the club at least 24 hours in advance of their arrival and provide proof that their residence is within 25 miles of the club. Guest fees, are number of guests brought by a Member and reserves the right to discontinue guest
use, all Members and
During Club
Members
or
club
guests will refrain from engaging in loud, foul or slanderous language or molesting, badgering employees, agents and contractors. Threatening or violent conduct is prohibited.
or
harassing other
4.
Members and guests will abide

reasons, clubs may
in all wet tile areas post recommended, but not required, attire. For example, LA Fitness recommends shower shoes or sandals
by and fully comply with
the LA Fitness dress code for proper attire
on
the Club
premises.
In addition, for
safety
and eye
5.
guards during racquetball activities. (as determined solely by LA Fitness). Members may not engage in any type of
No Member or guest may coach or train other Members or guests business or enterprise while at the LA Fitness Clubs.
6.
in From time to time, LA Fitness may permit independent contractors to offer products or services to Members. LA Fitness does not stand behind or the quality or reliability of, these products or services, including whether or any way make any representations or warranties concerning, or guarantee not these independent contractors will remain in business for any period of time. that Members should not bring valuables, including money, onto the club premises, lockers or parking areas. Each member understands and agrees LA Fitness will not be liable for the loss, theft of, damage to, the personal property of Member or guests.
7.
8. 9.
Members and
guests may not bring illegal drugs or alcoholic beverages
onto LA Fitness
premises.
The front desk telephone may
only be used by guests or members in the event of an emergency. by any additional LA Fitness rules and regulations posted at the Clubs.
10.
Members and guests will abide
CAN KEEP WARNING: USE OF STEROIDS TO INCREASE STRENGTH OR GROWTH CAN CAUSE SERIOUS HEALTH PROBLEMS. STEROIDS DAMAGED LIVER TEENAGERS FROM GROWING TO THEIR FULL HEIGHT; THEY CAN ALSO CAUSE HEART DISEASE, STROKE, AND ACNE. MEN CAN FUNCTION. MEN AND WOMEN USING STEROIDS MAY DEVELOP FERTILITY PROBLEMS, PERSONALITY CHANGES, AND HAZARDS ARE IN ADDITION TO THE ALSO EXPERIENCE PREMATURE BALDING AND DEVELOPMENT OF BREAST TISSUE. THESE HEALTH CIVIL AND CRIMINAL PENALTIES FOR UNAUTHORIZED SALE, USE, OR EXCHANGE OF ANABOLIC STEROIDS.
Page 3 of 3
LA-PA 7/09
Document 1
Filed 05/18/10
Page 42 of 45
EXHIBIT C
Document 1. Filed 05/18/10
Page 43 of 45
LA.IFITNES
MEMBERtHIP NAME.AoREemot
E-MAIL
S.
BAR OODE
?q)DRESS.
EILISINEbS RHONE.
HOME
0511/0-MERVIAONE PII.ONE..
niasii
IimisselATE FAMILY Maidletatifietsiago-ON:giatetasHit* Oat Le,reAT ttiesAme Acierst MOUSE ViE SAME SolJate OF PAYmgfir AS MeMBER. (Max. 4)
/f J rew pirmyic....
4ii) men
ii3.FAtif^IAME-
agreed by end between LA. Fithess InternationaL LLC (Lk Fitness') arid at yeti, the undersigned Biryet (indiyidiially, if yOu ate the Mentor, and/or agent PAYMENT that yoU are litircilasing a.. or guardian' of the Member or responsible pa4). frem LA. Fithess acdoNing id the. taint On edth odes of thla. hoktfoktEt.._, .filedibershIp MeMbership Agt.dertient and d-te turrent Membership Pellcies and Club Mkt arid FietritAtt
It Is
INITIAL fiAYWENTS AOTHilitIZED

amt..,
LAST 4 bteITS pAy rYPE.:.. iNF ACCT. tio...
AmovNT
Regulatlions CAgreernent").. isit-Kme. Gets.. PAID IN PULC(PIF)MEM6ERSHIP: EKRIRES .(E)TIRES SAME DATE) Pitts Applitable ANNUAL RENEWAL:
Sales Tex.. + APPLICABLE TAX. YOur dues Will be SALEB tAX 5 MONTHLY DUES It.;.ST...-. billed Menthly by electronic fund's trendier to Our bank aecOunt (tF-r) or toULti.ue. SERVICES.... :1 s.. credit CakfCCC"). i k! o WEST PRIVILEDES 7, I *LIMITED ACCO'S: If checkedhe entry/access after 409 pith Mon-Thurs. 5.. TOTAL PAID 5 f.',.. 0 RARIA' AODES5 5 If there ere any Family Add-00 FAO") to thit Agreement be advited tHat if You .6",;(cEi5.i. It ohoOde InghtfatUre to pay ferahy such FAOS throUgh rnultIPle aCcOunts, a one- MEMBEBBHIVIYPE: 0 RADODETBALL a FAO Atm dplit fee Of $79 Will be thared per acOeunt added. Additionally, if pre0 feweuderivice SOUS. Off this Agrettnerk yob agree and -Onderttand that the atheyht of yourDifet. aUthorid MOnthly Dues will be decreaded bY the dorresponding Monthly d KitliiiLOt amauht of the FAO being terneved freen your Agreement.
Rio:
rho.
ino.. hlo.
ma..
Mb.
conoei this Agtoemoht atohy-timo ptic* to Midnight. of tho fifth butifiess (lOy of the bf this Agreement; exclUding Stindays affd.hbildayS: TO C01001 this-Agretihieht, rhbil or Club 'OW thtfdAte this deliVet A.Signeti anddated hOtice, .ot tend a telegrain:whict.f-StateS-, that., you, -.the 13.4y0t..0e.'coheetiog CA the nOtioe shall be sant-to-.1.A. Fitnetsf14:0: 00(54110, levinei Agradinentior words of situileteffect .CA 92014 rot quit.kof 92019.4110 or delivoad to LA, Fitrib$sgt: 1600 Michelson tvelVei *Oa 30; and tozi Sure tc.) raeOlve .4 tedOiljt. :See page 2 fdr reft)ht4 ..vi$it tho -tita0ott oltib Iodation to-cancel Ih.perSOn addifibeta[taitellatitin old refund rights:.
ano cOntiniang tin. youk errico BILLING DATE: YoUr montrilY dues will ba'autorhatically billed and C011ebted elebtrOhicallyonte a-Mohth beginning StiOn thereafter.ad prootital,, until terininated In.the manner provided herein... oh that seine clay Of eaCh Month, or as Of riferithly OUes through eFT dr HOW TO CANCeL )(Pun. MpNTH4Y-DII0 MEMBERSHIP: Yeirrhay4ahoel YOUr memberthip ancl thedOntinUed billIng tibtide A eaneellatibh pestmarked at 1E-lett 5 co by MailitIg *Men' notice of Your caribellation fequest to: LA ritfrats; P.O..13toi 54170, NO, CA 92-611j-417O than 6 buSlhest days befOre yoUr 'herd blilihg date should result th no Niter Mobthly DUeS billing: A dafibellation.notice-9099tiarWIO9.s buOiriots pap before yout refUnd that"billihg. oeOurs, LA FitheSS next billihg date, may resultin Vie tribre MOnthly Mies billing. In either. tate, .if Saoh.ahaddilicinal MOrdhlyOVOS billing the Month epaid by yOur final EFT tit CObilling, atid your diedidoNhio will *Ire et the arid Of that Year laSt itionth's.preptid dues' vAII be applied tO the nibnth after prepaid leSt month UntIl ydur inenibershIP oplrot, you will have.ddhtihuadtiohabbaSS. faith the abOdunt yOU Identifieti gridior any trt-ib'c initiate cEFIKC REOUEST: Try the eidont penriltted bY law,. you hereby authorize tit tbI4elarite Warble above 'chalet If not othehMte Paid Within 60 days after the date of Due ShOWn Or SUbstlidte act:di:int (the "Addbunr)for the fdllowIng errioutitt: (f) the replabeiterit rtionthly feet We charge If yoUreduast a freezethIS Agree-inert (2) Mir rnohthlyddet, at deteribed abOve, if ybu ate a Mblithly DOet Wilber; (8) anydne-tithe"Or 6-0:00, .dependihg eh length, butsubject to changio; (t), from $6-$20 pat months, or a One4irrie fee rafting frign of Our' MoritershiP privileges (eUrreritlyran6ing a:tato-01 fee Of up td $19 fitir any EFT/CC freake: yoUr monthly dues, or a pro-rated portion thereof .cin-teactivatIon-of yak meMberthip privilegeS following gny we proVide you frOrn titneto tittle if yOu inStruct ut to or Other gadda or servlbes Chate that IS returhed unpaid arid (6) any othat fee for Pertrinal Training 'Services' te the ektent penriitted by law, OOrribihed With Other guthoriteg bill the criatgeto yOUr AccOuht ori file. Authorized EMCC baymenta may be Separately initiated Or, tie-Writteti netite Of tentilhatIOn. It Will only take effect EFlyee paymenta. YOU they cartel yOur EFT/CC authoription for the payment Of itorithly dueo by dvinb efforts to ad oh the mete. We hava bad a tele:Iota titoe to allow ut and your finahCial institUtieb, usitiToorniterolallyreasonable(tlaribt Oratirdinary) after to NOM floyer.ooonlinitenerntiothe.terrho of thIO AMU-Merit BUyer hereby odirsehts torthe-ote Of an eleetronio signature' retelved a fillod-in. oho oomOietott copyof this AgreeMetit legal ay Signing -OS Agreemeht, BUyer acknOWledget thot Buyer is of and lige;, haS theentire -*EFT Underatandt agrettiletit Including bilt hot IIMItedle theherebf end SerVicea outottased, haa read Identifying the MeMbetShip type andCOnditiOtTaOn 'OW reverte 'aide the Release rinO WaiVer Of Ltability-and Inderfutityi- all Other Additional Terme. Request (if applidable), opristitotos the entire aMeehient of the andthe current MeMber*hiP POlioles and Club Rules end RegUlatiOnsprevided:hefeWith..This Agre.etnefit Fitneas h0 WOO nO oxphige Or litYptied pO. *her agreeMent Or underatandihgeXIStS betw,ean BUyer -and WHOand or enyOne-tti"efiter. Into-IWO AgreaMerit. L. worrontios.0 rePrOVOtiOPe otherthan thbet eXpreesly, set foech ih this AgmatifottO Intiuqe tibyer ram Any ocinflict betweeti- the. Gag( nal fitheo.te6ifinThend$. that yeir zeritult yOUr:ptiy&iolorr pnorto beginfling: any eitarelfe or Weight Uss'prOg COpy of theOriginetAgreeinent shall be tontr011ed hy the 00101 AgregMeht., Agteericent.thdany
You; the'Elwei-, 'may
to:the cancellation provisions herein, a MOrfthl DVes.AgreeMent if etin awes for roughly two months after your final EFT/ a payment. or you purchased a Paid in Full MeMbership; the:length df the tetrn is MOilths.
SUbieCt
ExeCuted at: (Club of entelithent)

L.A.
Califarrila
tvi5MBEIVS puyER's SlaNATURE DATE FITNESS EMPLOYEE ID NUMER -due wider Mit Agreetrieht YOu itithOriplA-Atilest either tO useltiferrhatibri front your Chedic to When you prbVide a thedk ao, payinont Of atiyarribtint the pertikitit at a OhoOk transaction. When LA or to thaw a one4init efettrOniC fund franifer frail the atcotint on Whigh the Check IS draWri be proCeSrt frOM the adbount On ywhICh the Check is draft as WithdraWn uses infortnatieh froTh yea Check to Make an elettronic fund trahger, hindS triay ROSS beck from your fioanClal instItUtlorf. tocin at the dame day LA Fithess retelyea yotir payftient and yeti Will net receive yOUr ehoOk
Paie 1
of 3
LA-tA
12109
Case.2:101.1119.1Wfw
'Mint of 'fiterither Rai:Mired
r^';,..4,
i.:,
RaYrnent.
:lucling_Initlation fees
500
Length of Membees right to taridel Agreedient after the date Of citetUtion

00
52 000, inclusive.
pot $2.500.1nclusive
!.*.i daYs after exectitiOn of moreberShiOcontract days after execution Of membershipsentiact.
o be liable., or that p the total oantract payMent, fridirding Initiatieri and other chargeS been made aVaitable for ute by however dendnfthetedthat has the Mernber based upon a Pro rate caltulatien Over the ten Of the chntrett peyfilent this Agreement The rertialning Porticin Of thee be retdrned tO the Mettlber.
im.,
1.1prin Candelladori.-Meriibet she(
Additicirtai
after ike ifate this Oenherein shall begin Within .siX rribrithtthe Cancellation Rights and Reftinde: FerfortflanCe Of the tetVices agreed seta SP'eCifie fadlties a refund if LA. Fitnett falle to prdvidd WO. Metter May Cancel this Agreernerft and teCelv pre after Agreement Wasentered indleated In this Agreement, Mender May Centel this Agreenient Within six mentht the br offered in Writing by the the ihdiCated. If ne time is adVerlited fails to Meet a tinieline Set fdrth herein, Member May candel of this AgreeMent and shell rebeive d pre tate refund. If LA Fitness the execution fbildWing the expiratien Of the timeline, LA. Fifties's deep prOVIde the aoyettiaeti Areertient at any tiMe after the expiration cif the briteline, previded that if, i. to 10 days after thote servicet ere Provided.. or agreed upon seNces, MeMber May canCel the AgreeMent up bueinete' hat the right to Canoe this at a faCility that has not yet Opened fer A MeMber who pays any money under thie Agrertient for Memberehip bUdineet. The refund Shall. of the fifth barites day after the date that facility cipent for Agreement end receiVe a full refund et any tittle prior tb Midnight df notice of Cancellaticin.... be paid within ten *(1 0) days of receipt eitate and all L.A Fitnese CIO serViCes for Which MeMber has crintradted, member% if by reason of death orditability, Mentber is Unable to receive froM Other than thbee.recelyed prier hi the Obligation df Making payment fet Sersiites Written noboe hereunder, anall be relieVed MeMber, upon giving to tervieee MeMber hat nottaken sum for eerviees, to much Of euCh surri at Is.alkicable a death or the drfset Of dieability, and, if Member hes prepaid any frOm physidally using the facilities,: and the cblidition is"verified by be refunded. "Disability" Meahs a COnditIOn Which precludet thaMernber the!l
physician.. Fitnest is unable to-transfer the' AgreeMent to a corriparable if Menber Moves further than 25 Mlles kora the LA.' Fithets Club of enrdllMent and LA. AgreeMeht by supplying Written .notfce haretinder, proof of of membere neW teSidence), Merriber May terminate this the daneellatien fee-wIll be facility, (one Within 25 miles If More than half of the life Of the Agreernent has eipired, 'reside-we, and paying a Oantellatien fee Of $100 for eaCh Meinbet: as is alledated tO serViCes Metriber has not taken, if If the Mernher has prepaid any .sum fOr set-vibes; at Muth of stiOh.suMs prepaid $50 per Member: daneellation foes.. kny, shall 1;.e promptly refunded, less the applicable agree that Use by Mernbeir andleir by Nt&nor$ ifou IMPORTANT: nLeAs5 AND WAIVER OF LIABILITY ANC) INDEMNITY., hereby acknewledgaand and PrOPerty,. including' thote dettribed belOW, Or prentises..inVelvet riska of injury to perSent Miner Children of LA Fitness' facilities, Services,. dOuiprhent L.A. Of Mentbdr and Membee Miner children being perinitted lb-enter ahy fatilityof and MeMber atatimes full reabonsibility fOr WO ritkt. in Cdrisideration Of faoilitiee, ativiCes eir- equipMenL or parecipatiOn tn- dity:wqy,. Member Observation, use Fitnest (a "Club") fOr any purpose Including, but notifmiled to, and agents harMlees froM altliability to Member, releases and holde LA. Fithess, Its direCters, tifftbert, efhplOyeet, agrees to the folieWing; MeMber hereby cit dainage, and forever giVeis up any claim Or astigns, heirs, and next of kin fOr ariy tote Menthes children and Members persbnal repreteritative% baited by.the activeor dr preOerty, .inaludihg injury leading to. the death Of Water, Whether deMatide therefere, on adebUnt Of InjOryito Merneers Perkin Children are in, .tiptin, or about L.A.
event of any breach of this
for notiCe Or to such other eddress deSighated LA. Fitness Shall be Mailed tb P.0, Box 54170, Irvine, CA.42619-4170, cider Noticea: Except as otherwfse ttated herein, all notiCes.to tend the ndtibe by Certified or regittored Mailreturn receilit requetted, n or LA. Fitneas recorritnendSbut does not require, that you In this Agreertterit as poSted at LA. Fitness Club facilities. td mernber hereunder shall be malldd tO the addreas (tenter:44S provided Of to Maintain Order thet you Om the notice in your Personal reCordt. AtInetices tiny part of thia Agreenient IS held by a teutt LA. Fitness of 14 writing and In aocoldarice With thls"paragraPh..lf lb Such other addreS$ which nierriber agreei to ridtify fullforte and effeCt.. the Wins and browns of this Agreeirierit shall rein& In remainder of In kdcdOnt rafrnbers and Walt ROM conigetent itirisdlOtion to be void a uneinforcOblethe end yOu.authotite ut Vassal; and obtain InTeritiatiOn atici0t thanget You agree to giVe Us notiCe if yeur biking oe Acceunt InforniatiOnchenges be required.,..... If yOu decidetdchahge yew billing infonatien, a 30-day notice may third paniet, sUch as yoOr bank or oUr credit card protestor. Membes end as agent andter Oen:Ilan of MeMber) agree that WOW, and Club Policies: You (individually, if you art theMerriber, Membership, Rules, RegulatIont andInvitees shall be beund by (hit AgreeMent arid the LA. Fattest Memberthip Polices and Club Rulet and Regulatiens prOvIded hereWith for or deriendea In the-sole and family Mernbersand any gUests.and POlices end Club 'Wet and Regulations may be revIted, Supplemented the usage of Lk Fitness Club facilities. YoU agreethat the Membeithip In the L.A. Fithett Club facilities. ahall becorne Immediately effeetive uporiposting absolute diseretIon of L.A. Pitt-fess and any such Ohanges fee It hot a prepaid surn for terVIces: a Merely entitlet this AgreeMent, the triitlatibb fee IS 6On-refundable. The Initiation It is guaranteed that your monthly Financial POlicieS: Except as ethenwite provided In Changes. Monthly dues will be In the aMeurit Intiltated herelnaboye. increate by More than One dollar and Other-applicable rate will net you tb buy services by paying ninthly -dues kern Me date of enrollnieht. After thief-5 years; your-monthly MeMberahlp dues Of a Multi-Member MeMbership, terMinatiOn byline rheinbership dues MI not Increase for three yeart dues-14 advante, for tlie firSt and !eat ninths of Mentership. Incase agree to te Use Me Memberen1p tatee. Felkite ($1) in any calendar year, dm all. You rates Ray dues tothereinaining Membert te Increase to the bievailino inoividoal Of dues cir by anyMdater Appilcable Membei- may cause the.mordhly other Charget tenet Made ori time, LA. Of the cirCumstatices, except AS 0*i:fed for herein..lf any payment duet will not relieve you df yoUr paynient ObligatiOn regardless bald, extept ge *dully- provided In thls NO refunds Shaii be Made for Memberthip Fitness may, Nit is not Obligated to, tuapend or terMlnate your MeMbeithip. 8 $10.00 senride fee ter atiy iteM <feared Charge theft pot paid for in this AgreenfenL you agree to pay AgreeMent. In addition tO the other dUes, feet end Charges previded by LA. Fithets. In ne event theill this' Agreetrierit reqUird any peyments Or financing bY the Buyer over a pretented for payment bY yOur finanCial InstitutiOn or aCcoUnt when of the Agreernent.. period Of three years or In excess of the term Me-titers payinent Obligation herein.. Assignment: L.A. Fattest May estIgn'thliAgfeemont; Including for po?Oriat-es of single er clatSic club Membership aS to USe Of all current L.A. Faness facilities in California (exCept Servicet, Fectlittet and Wafts: Member Is entitled and sauna (where aVallable), lookarreem, arid aerbbic Classes, tite Of free weights, battik) rheehineS, peol Indicated On page 1). Setylded.purehased inclUdeaCcets to:group fatIlities are open to the public: Future alba 'May be Iribluded in tilt cOun aboess if -se indicated on page 1) dUring'all heurs the tiatIteiball Court acceet (plot reeqUetbell In exoets df 72 libdra. the L.A.:Fitnett Club Fitness CO facilities ere Unavailable to Member for a ContInunt peeled Membership at the discnation of LA. FitriesStf the LA. a at the electibri of LA. Fitnest, it May make available to Shall po extaridod for period equal to the timeof such Unavailability. Alternatively, Membership ante (Upon request) In Itt tole and absolUte disci-den, raters/et therighttb Close any Club Moilitles Within e mdius df 25' Mlles of the Club, L.A. Fitness. MeMber at no additional cbst coMparable L.A. Flinett diub*hilet, regulations, conditions, guldelinet; faCilitiet, ClaSteS, prograMs arid heat Of operallen. Clattes, facilities, Club and/Or change ekiSting LA. 'Fitness or Urnes changed If dernand fluCtdates. to dernand end may be crowded et peak hour's or May be ditcontinued parking and equipment are available subject
Agreement. shall be cancellation of CONSEQUENTIAL DAMAGES.
extent by raw, while Meniber or MerriberS tither passiVe negligenCe Of LA. Fitness or OtherWIte, tb the fullest dr perMittedMOM* Wed hereby agreet td inderithify LA Fithatakcitii ahy lots, liability. equipment or using any LA Fitneat .facilitiet, ..servicee Fitnats prernitet cit atibtit the LA Fithete Pretillsee or In any Way tb the preeendeOf Mdrnber dr Merebere Children in, Uperi daMage Or. cbst LA. Fitness May incur due Of Meniber(s) et Otherviite:"YOu repretent (a) that MeMber or equIprilerit of LA Fitrieee whether baited by the negligence front eXereiting obsenfing or-using any Wilkie no &ability, illness, or other addition that coUldprevent Mernber(e) and Members Miner Children are in geed phyaioar condition arid have that will het riek injury td MeMber dr that Mernber hat &insulted g phytician CorteMing an ekerclee prograin withOut ihjUry or imowment bf health, and (b) of eierdie egoibment aho le het liMited to): injUriee arising kern lite by Merriber orldthett inipaignent of Members health. Such risk of Injury InclUdee (but at a *ClUb; Inpries and MediCal irt sUpervieed or untuperVited adtivitiee or progratht or ethers machlnet; injuriee arising intim participation by Merit& Nati-tenth., among Strokes, heat Stre8S, eptaine, beoken eerie& and terrirnUteles .and disorders ahsing frdm 'exercising at g CIO such 08 he0rt etack8, fatilities. MeMber fUrther eXpreselyggreet that the fOregOing anywhere in CIO drestihg reerns, thOwers and ether that if any portion others; and daiderital injUries Occurring and inclireive as 18 perMitted by the law Of the State of California-6N release, waiver arid indeMhity agreement is interided tO be es bread died. Meraller hae read Mit releaSe and waiver Of liability that the balance ehall, notWitrittanding, centinue ih full face and thereof it held inVoild, it is agreed have beentriede.. or Inducement apart. frdm thle AgreeMOnt and indemnity Clause, and agrees. that no oral. repreeentations, staternente exClUsive reitiedY In the other than those sot forth herein, and yotir sold arid or iMplied, ANY SPECIAL 'INCIDENTAL- OR L.A. Fitnees makee no Warranties or representation-a, express IN NO EVENT StiAll LA. FITNESS BE LIABLE FOR
r
this
Agreement.
Page 2 of 3
LA-CA 12/09
eraft#72420.eiggPnalitriigL1TfoUtiib4u1B RIMigHtifift9t3LARi 45
and
are a
of 45
part of the Mritherthlp Agree Merit. YOU., the Member, agree to RegulatiOne") 11.ft itilleiiihg Mertiberthip POlicies and Club RuleS and flegUlatiOnt ("Rules and -terviCes Offered. LA'Fitnets may Change the Rules abide by the Rulet and Regulationt and Other rillet at Osted Whith may vary depending on the- dub kidation dub rulet apply to at any firth. LA Fitness Will pat any wen changes at the dubt. The AIMS and Regulatibrit thd theindMdUal and Regulatione without notice Oti Or abeut ttia dub Preriliset. Wilbert aS Well as their farifily nierribert; guetts and MI/Met (cetledtVely, ''gtieste) Mile in, if a tenthe is elithinated and additional fees Were Memberthip tipas and Servicesare tubjecttO Change WittioUttiblice and ere not iitheetarily.availoble at all dubt: Sio fee tedUetions vdi tie thadalt tttvic:6.that ita prO41ded at it aciditkdal chdtga are distentithed up00 Meinber't tot:tat, f& that s'efvice; the feet
charged
disccilArittell CIO. diaaakiatiOrit aria subject tO change withOutflotide-or Ted adjustinent
will.be
dribs. Ref& tO wii.W.lefitriets.corn fot Orient tignatUre" dub thlt rhorriberthlp theditoretion Of L.A. Fithea. atki lbcationt. Future dub lOcations and brands May be excluded listings .lkefer to Pre-rider: A ditiltf-Club Metribership valid att...A. Fitness diibt in all Oates. except "Signettlre'clubs end Clubt located in the Siete of New York. locatIont: FutUre dub IticatiOnt and.brands may be ekluded frorn thie niernbershiP at the disdetion of L.A. vw+M(.18fitriess.com ter current dub fittings and
.gigriature: A mUlti-ttate Mettherthip Validat LA Pitnaas OlUbs In aft ttataa-, intludingtignature" at froni
MEMBERSHIP tYPES.
rittia5..
wwwdafithess.Oom for current club listings and locatiths.
Firethlet .tingle State: A Milli-dub memtiership valid Only gt L.A.
Fitnett clubs in the ttate Of entailment, exchidiN "Signattire" dubs. Ittefer to Future dub todatiOns end brands May be eXCluded WM this ineMberthin at the ditcretiOn Of LA.
abdeSS te thehealth dub fealty Ori Menday,..Tueedeji, Wedneaday or Llialted ChM Aecatt: lf this box is checked On page 1', this' riiertibershlp does not Perriiit ThttrOday after 4110 p.m.
Sirigie: A tingle dub memberthip valid only at the dUb of enrollinent..
Fitness..
SERVICES.
Ratityrietball Cdift-tt: If Mit terVide it purdhaed, it entitieS the indifit;et tia Ute moo-ad:54 taint (Subjed LA fitnets g
to olub(etarVatien
policies end Oat-availability) at any LA
menibership.... Pitriess dub that offervraequettiell .oeiftts Where Meither hat valid who checks the .kieN KlirLe If kid's klub serviCes are pOrchated, the"perent Or guardieh mutt-check thesdhild In atid OUt of Kid'eXikib and the tiareritdi guardian Fitnets' Kin KlUb forA ingiiithurn Of MO Woe and the.paront or guardian Mutt retain On Lk child itirraist check the child out. Children may reniain ih Kid% Eit:tb.. and epplideble prerhises at all such tinesrleaSe check with the front detk kir additiOrial rules, lolkraa Membership feet OncethIng 'Iriclude-s-ue Of the Kidt' KIO teiviCet you haVe purehasod Addees: If "Faintly ACeett" is checked Linder the "'Services" ti6ading cin 00.1, the Fa-frilly at the &lb (euttantly kW ages.3 illdnflit 12 years): for up to Z children, during the trews and purtuarit to the current rtifee tUCh servides ere &aide available the payin0 adUlt oh thit Meinbeithip May brihOlh a faMily ifiernberebed 14-11 i3 te Obe the club With that adrift, provided Additionally, the paliing adult Menber(t) at all thee< HoWever; this guettfanilly aCtets is nOt available efter 6:001).#1. VI:6day throUgh-ThUteday. Matter it at the dub With the faMily Member It checked on page 1, Matti& may brihg in LIO tO IWO guettt, agt 14 or deter, to use the tith with Neither.
Gtiett
Privileget: If 'Guest Privileges"
RULES AND NEOULATIONS...

1..
2.
bard di &Men liceifte Or Other -0/din-Merit ittued pidture identification. WitheUt Ligon entering the dub, ell MembeS era required to piesent their actkie Metriberthip fee for ute of the Witte's (Or that.day. the MeMberthi0 card er proper identification, LA Fitness May prohibit your use Of the facilitiee or May Charge a gUest ell Oules and RegUlations..Allgdests entistpreve that they ere &team All goeels Must-Sign a Medical and Mit-in/release form pOor to using the dlub facilitips and follow a Guest Patt may only do-SO one tithe during 1.8 yeart cif age Or older ot are at legal 14 yeart- of age arid actoriip-anted by a parent dr legal guardian. All gtietta using Miles of tdur ef the club at least 24 heurs In ads:lance Of their arrival and proVIde proof that their ietidente Is within 25 any six Month peed arid Mutt arrenge Mr a brief dlecontlnue without notice. LA Fitnest (nay restrict the nurnber Of guests breught by a:Methber and reserve's, the right to the Club. Guest feea are spbjeCt to
guest privileges In
3.
its sole and absolute
change
discretion.
4.
5.
MeMbefer guest May Flthets-Clebt. to Meribert. LA Hthest ddet nOt Medd behind.Or Inany waytnake any Froth tithe te-Unie, LA Fltnett May perhilt Independent contrattors 0 OfferprOductS Or teiviCet 6. Whether ot not theseIndependent COntractors will or representationt CiiiaeratiOs cdricerning, or guar'anteetheAdelitydr reliability.of, theta products teridas, Iddirding tent* lh tinsinets kir anyperiod Of tiine; Or periling areas. tech meniber undeMands end agreet that LA.Fitness Is not 7.- -.Mernbers.Shotild not bringvalitables, Intruding niOney, Ohtb the Cluti prerhiees, lotkets oh or around the PIO pleMises. Indluding but hot limited to, anyvehIcle dr its liable to MeMber or 'Netts for any personal Protierty-that is lett, daMaged of stolen While
.While at the LA
the Club Oreinitet. Iri addition, for safetji tenadna; clObs may post Members'and 'guests Will abide by end fully coMply With the LA Flthest itreet Cede fdr .propeiattire.On In tile altered eye guards'diking racquetballactMtles. but not required. attire. Fitt ekartiple, -LA Fltheat redordinendt shoWer stkies or Sandals ell Wet reddrritnended, In of titialfiete or entdrptise CoaCh or train other Mar-Tibet orguettt (as deterMined aolelY by LA FitnesS). Members Mai/ not engage any WO No
empleyees,
Curitig*Club ose,
all Merribert and-gudets will-refrain from, engaging in loud, foul ot slanderous agents and Contractore. Threatening or ylelerit conductis prohibited.
language or nielesting, badgering Or haratsing other Members or club
contents, Or ahy prOpertylelln a lodker.. 8. MeMbeit'and goats May not bring Illegal drifga or alccillcille beverages onte LA- Fltnets PreMitet... The frcint desk telephone may only beuted by.gUests Orrilenibertin the'event of an prilefgency.. 9. et dUbs.. to. MeMbers and gUetts will abide by any acklItional LA kfiess rulet 'arid regttatldht pbsted ifte ei Inective.Status (tidied) dursUant tO LA.Fithaeoloi Otirreht pity; 11. MY aCtkie L.A. Fitnett inenderthip in geoctstendlng Mey tie placed on i2.. MeMber Is liable to LK. Fitnest fOr eriY alb dadiage Ceuted by Membet and Member'Sguests.... Member or ivtotilbeii 'itieste vio6te Wit Agraethent dr erigage In 'other 13. LA Fitnett thay suip.ohd Or teritilnete Meitinert.t1fif 1.5 ike the CIO fetifiliband tenrides:if If Such a bieaditef the Agreetherit OCCUit. rhisadndudt In dr abbutthe Lk Fithest Witty. Menthe Shall liottie entilied te anyrefda credit (kabala:Merit or 60 day Ocirturitnieht by tioth peitiee, LA Fitnest Its-Wes the riglif to terinInate the Menbershlp Icirenfreaton WhatSoeVer drotrWfitten'dOtice 14. After, ihe Initial 30
and a refUnd'of the dre-pald dyes, flatly....
WARNINO: USE OE StEkOIDS TO1NottEASE tTRENOtH.Ott attOMN CANCAUsE SERIOUS HEALTH PROE4EMS:: sTaRolot.dAN.Kep -reNAotks F.RoM oftoWINO tO tHEIkF014.*NSIONT;IkEYcAN.AL$o cAuSE HEARf .01gAse,, $11100, AND DAMAGED LivERFUNCIION. mENANDWOMEN USINO.StEttoIDS MAY DEVELOP:FERMITY.fikoKEM% FEOONALITY CMAN9E8, AND ACNE. M'EN CAN ALEC) txpeftieNo PilEMATUftE, BA4DING AND DEVELOFMENT OF, EREAtt TitsuE. THoe'REALYNNAZARDS Alit IN OF Apliftio.N to.tHe MIL AND- DRiMINAL PENALTIES rokuNAUTHORIM$ALe, LiSti OR EXCHANOE ANABOLud STEROIDS*,..
Page 3
of 3
LA-CA 12169

LA Fitness Monthly Dues Contract Cancellation Issues

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LA Fitness Monthly Dues Contract Cancellation Issues

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Case 2: 10-cv-02326-M M B

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF PENNSYLVANIA

STEVEN BILGRAM, on behalf of himself: and all others similarly situated,

Case No. JURY TRIAL DEMANDED

CLASS ACTION COMPLAINT

TABLE OF CONTENTS I. II.

NATURE OF ACTION JURISDICTION & VENUE PARTIES SUBSTANTIVE ALLEGATIONS A. B.

Background Regarding Defendant LA Fitness

Monthly Dues Membership Agreement and Practices Deceptive

Defendant LA Fitness's Cancellation Practices Are Abusive And

The 30-Day Notice

Requirement is Unfair and Abusive

Applying Prepaid Last Month's Dues

30-Days After Cancellation is Unfair and Abusive

There Are Hundreds of Consumer Abusive Practices Plaintiff s

Complaints About LA Fitness's Deceptive and

CLASS ACTION ALLEGATIONS COUNT I BREACH OF EXPRESS CONTRACT

COUNT III VIOLATIONS OF ALL OTHER STATES' CONSUMER PROTECTION LAWS

JURY TRIAL DEMANDED PRAYER FOR RELIEF

Plaintiff brings this action

behalf of himself and all other persons in the United

similarly situated who: (i)

former members of Defendant L.A. Fitness International,

("LA Fitness" or the "Company") who have incurred

they mailed their notice Monthly Dues

current members of LA Fitness who entered into

Membership Ag-eements which contain the egregious cancellation provisions

months after they attempt to cancel their

memberships (the "Class").

and operates health and fitness clubs

the member pays

(which amounts to several hundred dollars), or to

enroll under its

"Monthly Dues Membership

times, LA Fitness has represented to Class members that the

Monthly Dues Membership Agreement was a "monthly"

monthly dues billing

simply by following the Contract's procedures for cancellation.

representation is deceptive and misleading because,

practices, it is virtually impossible to cancel the Contract without being

charged at least one or two months of additional

when members follow the

strict cancellation procedures. More

monthly EFT billing;

be cancelled at any time by

following the cancellation provisions in the Contract, Defendant

LA Fitness has structured and

implemented its Monthly Dues Membership Agreement in an

unfair, abusive and deceptive manner that is designed to

cancel their Contracts.

Indeed, if a member wishes

stop using LA Fitness's facilities and not be

dues for periods in which he

she does not wish to

days notice of cancellation (or at least 50

days for newer Contracts).

box, post marked no later than April 1, 2010,

at which time LA Fitness

will bill his/her credit the member's

May 1, 2010, and then

last month's dues to extend his/her membership

procedures and timeframe to cancel are not known to