Lawsuit cost could overwhelm Valley (Swim) Club

[RamboLiberal]

Source: Philadelphia Inquirer

Racial-discrimination lawsuits against a private Montgomery County swimming club over its revoked contract with a Philadelphia day camp could cost enough to threaten the Valley Club's existence.

Attorneys, club members, and tax records indicated that a pair of federal-court lawsuits - one filed, one promised - could cost the club more money than it has and possibly leave board members liable for civil-rights verdicts.

-----

Duesler said the club has 150 member families, and its 2007 IRS filing says it spent almost its entire year's revenues of $100,267 to cover operating expenses. Having to pay taxes would shift that balance.

Wiley, the civil-rights attorney, said federal law allows for a nonprofit organization's board members to be held individually liable in a discrimination case.

"Being private is not going to help them," Wiley said, "and being nonprofit is not going to help them."


Read more: http://www.philly.com/philly/news/local/20090715_Lawsuit_cost_could_overwhelm_Valley_Club_1.html

[ixion]

1. perhaps they should have thought of that before their racist action

I mean, it doesn't take a trial lawyer to tell you if you openly discriminate based on race that there will be lawsuits.

Sorry, no pity for these idiots.

[MineralMan]

2. They could save money by just signing over the club to that

day camp group.

[tomm2thumbs]

3. Now everyone will know what it is like to not be allowed to swim there - howzat feel?

no pity for them from me either

[goclark]

29. Poetic justice nt

[NanceGreggs]

4. Awww, that's a terrible shame ...

:nopity:

[Paladin]

5. Good. (n/t)

[HopeHoops]

6. Maybe they could raise money by renting the pool out to daycare centers - D'OH!

:rofl: :rofl: :rofl: :rofl:

[Romulox]

7. It's well settled that a private club may discriminate.

The lawsuit likely has no merit.

[RamboLiberal]

10. But what if like Bob Jones they are stripped of tax exempt

status by IRS?

Also even if they end up not having to pay any money out, the attorney costs will eat up their budget unless they have some attorney's among the membership who want to work pro-bono.

[Romulox]

11. A private club likely isn't tax exempt...

And it is distasteful to me to suggest that one can win in the legal system by simply bankrupting one's adversary, where, as here, the law is firmly settled on this matter.

[Naipes]

15. Did you even bother to read the link?

The club is, in fact, a tax exempt, non-profit club. Go read the story.

[Romulox]

28. No, I didn't. Mea culpa. nt

[RamboLiberal]

23. Nonprofit - read this

The club includes more than 10 acres of land and a 110,000-gallon pool, according to its Web site, and is a private nonprofit organization chartered in 1954. A single membership is $395 per year.

http://www.philly.com/inquirer/local/pa/20090709_Montco_swim_club_accused_of_racial_discrimination.html

[msanthrope]

24. Well, they aren't a 'private club' in the sense that they can

claim exclusion rights.

Membership is by payment, not selection process. Therefore, they do not fall into the classification of clubs who can claim legal cover.

[Romulox]

27. I don't think characterization as a "private club" turns on payment, does it?

Not a civil rights expert, but I believe the distinction is whether the club holds its services/facilities open to the public or not.

[NoGOPZone]

12. The club has allowed the public to rent their facilities. The plantiffs have a case nt.

[Romulox]

13. That is likely the only fact in controversy

Nonetheless, nothing I've seen suggested this private club became public by offering membership to a select group of persons under a specific set of criteria--this is how all private clubs operate.

[NoGOPZone]

14. The only fact?

Whether or not the children were excluded because of race is certainly a fact in controversy.

As far as whether or not the club becomes public, the Civil Rights Act of 1964 states

The provisions of this title shall not apply to a private club or other establishment not in fact open to the public, except to the extent that the facilities of such establishment are made available to the customers or patrons of an establishment within the scope of subsection (b).,

The emphasis is mine, not in the Act.

My understanding is that the lawsuit is being filed in a federal court. The plantiffs would also have a case in a state court under Pennsylvania's Human Relations Act.

on edit: 'law' to 'court' and 'Relationship' to 'Relations' in the last sentence.

[Romulox]

26. If the club is deemed "private", there is no COA under Federal Civil Rights law.

So that is what the case turns on.

"Whether or not the children were excluded because of race is certainly a fact in controversy."

I meant what I said only in a technical way--if the club is private, it does not matter (for the purposes of the Federal civil rights law) whether the children were discriminated against on the basis of race. Of course, it matters very much on a moral level, regardless!


"except to the extent that the facilities of such establishment are made available to the customers or patrons of an establishment within the scope of subsection (b).,"

Without quoting subsection (b), that doesn't shed much light on the matter.

[NoGOPZone]

31. Section b essentially defines what constitutes a public accomodation

b) Each of the following establishments which serves the public is a place of public accommodation within the meaning of this title if its operations affect commerce, or if discrimination or segregation by it is supported by State action:

(3) any motion picture house, theater, concert hall, sports arena, stadium or other place of exhibition or entertainment.



The issue of public vs private is not as black and white as you imply it to be, no pun intended. This is evident in the phrase 'except to the extent' in the section originally quoted. An organization may meet the definition of a 'public accomodation' only in certain instances.

[msanthrope]

20. You have it reversed--

Because they were not choosy enough, but rather, because they have a membership that merely begs payment, they are NOT a 'private club' in the sense that provides legal cover.

[Geoff R. Casavant]

18. I thought the same thing, but someone pointed out --

-- that the act of publicly offering the pool for rent prevented any racial discrimination regardless of being a private entity.

[msanthrope]

22. That is one prong of the eventual case...

when you rent out, you are subject to applicable law.

But they are NOT truly a 'private club'. Why? Membership is to be had by writing a check. You need to actually be more choosy, much more of a private club in order to claim privacy.....

[msanthrope]

19. They are NOT a 'private club' in the sense that gives them

legal cover--at least by my reading of the applicable case law.

They are a club of general membership...as in, any JoeBlow can pay for membership and go.

If you want to be a truly private club, then you must have a choosy selection process that restricts.--See country clubs that don't have women, etc.

It goes back to a basic property right--the right to exclude. If you don't exercise that right specifically, you lose it's legal cover.

[Romulox]

30. If what you say is true, then the plaintiffs should recover under the Civil Rights Act.

However, my understanding is that this is not a "take all comers" type establishment. I may be mistaken.

[TheCowsCameHome]

8. Drowning in debt? Gee, what a shame.

[Segami]

9. Looks like the Board has entered deep waters without a flotation device. Looks like

that Land Developer just might get that property he seeks after all. If practiced ugliness goes around, it will eventually (in time) make its way back around.

[mbperrin]

16. Good news, and just what I predicted in the original thread on this story.

We need fewer organizations like this. Period.

Hope the kids enjoy their new pool once they take possession!

[damntexdem]

17. Well here's a big crocodile tear for their plight.

Sorry, but that just won't be enough to refill the pool. Bye, bye, swimming club.

;-)

[DarthDem]

21. So Sad!

The world's tiniest violin plays.

[msanthrope]

25. Just hand over the keys....n/t

[hayu_lol]

32. As I understand this thing(if I'm wrong, surely someone here...

will correct me)....lol

Justice here would be best served if the club and attorneys for the damaged parties got together and paid all the expenses for an appropriate amount of time that would allow the YMCA pool in the area where these kids live to reopen and stay open.

The fact that the kids neighborhood pool had to close was the reason for renting the club's pool in the first place.

This would be appropriate justice.