Hirsch v. Jupiter Golf Club LLC

232 F. Supp. 3d 1243, 2017 WL 448952, 2017 U.S. Dist. LEXIS 56798
CourtDistrict Court, S.D. Florida
DecidedFebruary 1, 2017
DocketCASE NO. 13-80456-CIV-MARRA/MATTHEWMAN
StatusPublished
Cited by14 cases

This text of 232 F. Supp. 3d 1243 (Hirsch v. Jupiter Golf Club LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hirsch v. Jupiter Golf Club LLC, 232 F. Supp. 3d 1243, 2017 WL 448952, 2017 U.S. Dist. LEXIS 56798 (S.D. Fla. 2017).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW1

KENNETH A. MARRA, United States District Judge

This matter was tried before the Court. Based upon the evidence presented during the bench trial, the record in this matter, the argument of counsel,2 and otherwise being duly advised in the premises, the Court issues these findings of fact and conclusions of law pursuant to Rule 52(a) of the Federal Rules of Civil Procedure.

I. INTRODUCTION

Plaintiffs Norman Hirseh, Matthew Dwyer and Ralph Willard (“Plaintiffs”) purchased refundable memberships in the Ritz-Carlton Golf Club & Spa Jupiter, n/k/a Trump National Golf Club Jupiter (“Club”). The underlying dispute arises out of Plaintiffs’ contention that the current Club owner—Defendant, Jupiter Golf Club, LLC d/b/a Trump National Golf Club Jupiter (“Defendant”)—failed to refund their membership deposits under the terms of the agreements they executed to become Club members.3

II. FINDINGS OF FACT

Plaintiffs are members of the Class (“Class Members”) that the Court certified and whose rights to refunds the parties tried before the Court. (DE 227 at 4). The Class contains sixty-five identified members including Plaintiffs. (Id at 4-5).

Class Members purchased Club memberships and became Club members of the Club by executing the Ritz Membership Agreement. That agreement defined the members’ relationship with the Club, .it established the categories of membership and granted them access to the Club. (Trial Tr. Vol. I at 18-19, 25-27, 29-30; Trial Tr. Vol. II at 9; Plaintiffs’ Trial Ex. 10 at R000000958; Ex. 6, Ex. 7-9 and Ex. 59-61). The membership categories the Class Members purchased were either Full Golf, [1247]*1247Fractional Golf, or Social and Spa. (DE 146 at 17; Plaintiffs’ Trial Ex. 7-9 and Ex. 59-61). These categories of memberships were “Refundable Memberships,” entitling them to a refund of the membership deposit they made when joining the Club. (Id.; Plaintiffs’ Trial Ex. 10 at R000000958; DE 227 at 4). The deposit amount each Class Member paid with respect to the member’s category of membership is uncontested. (DE 227 at 4).

The Refundable Memberships entitled the members to use the Club facilities according to their membership categories (Trial Tr. Vol. I at 39, 50; Vol. II at 24), and expressly granted them “a revocable license to use the Club Facilities in accordance with the terms and conditions of the Membership Plan and Rules and Regulations ...” (Trial Tr. Vol. II at 20-21, 23; Plaintiffs’ Trial Ex. 7 at R0000008174-8175; Ex. 8 at R0000001216; Ex. 9 at R0000001199-1200; Ex. 56 at TMP 000005; Ex. 58 at TMP 000155; Ex. 59 at TMP 000148; Ex. 60 at TMP 000265; Ex. 61 at TMP 000254).

In addition to executing a Membership Agreement, the Club provided Membership Plans (“Plan”) and Rules and Regulations (“Rules”) to the Plaintiffs and the Class Members upon their admission to membership. (Trial Tr. Vol. I at 30-31). Under Section V of the Membership Agreement, a member agreed not only to be bound by the Membership Agreement, but also to be bound by the terms and conditions of the [Ritz] Membership Plan and Rules and Regulations. (Plaintiffs’ Trial Ex. 7 at R0000008175; Ex. 8 at R0000001216; Ex. 9 at R0000001200; Ex. 56 at TMP 000005; Ex. 58 at TMP 000156; Ex. 59 at TMP 000149; Ex. 60 at TMP 000266; Ex. 61 at TMP 000255).

The Dispute

The documents governing operation of the Club provide four circumstances which would entitle those members with Refundable Memberships the right to a return of their deposit within 30 days: [1] termi-. nation of the Membership Plan, [2] termination of any category of membership, [3] recall of the membership or [4] the discontinuance of operation of all or substantially all of the Club Facilities ...” (Plaintiffs’ Trial Ex. 7 at R0000008174; Ex. 8 at R0000001216; Ex. 9 at R0000001199; Ex. 56 at TMP 000005; Ex. 58 at TMP 000155-56; Ex. 59 at TMP 000149; Ex. 60 at TMP 000266; Ex. 61 at TMP 000255; DE 146 at ¶¶ 17, 36, 80d, 103-104; DE 216 at 6, 9).

In the present case, the Court determined, as a matter of law, that there was no showing by Plaintiffs that the first, second or fourth circumstances occurred. The Court also concluded that a genuine issue of material fact existed as to whether Defendant recalled the memberships of Plaintiffs and the Class members entitling them to a return of the membership deposits within 30 days. (DE 124).

Defendant’s Assumption of Ritz’s Obligations

Defendant purchased the Club through a Purchase and Sale Agreement (“PSA”) dated November 14, 2012. (Plaintiffs’ Trial Ex. 1, 7-9, 59-61; Trial Tr. Vol. II at 5; DE 141 at ¶¶ 24, 26; DE 227 at 5). In the Membership Agreement, Club members agreed, “[i]n the event that the Club Facilities are sold and the buyer assumes liability for the repayment of the membership deposit, the[y] ... shall look solely to the new owner for repayment of the membership deposit and the seller of the Club Facilities shall be released from all liability for the repayment thereof.” (Plaintiffs’ Trial Ex. 7 at R0000008174; Ex. 8 at R0000001216; Ex. 9 at R0000001199; Ex. 56 at TMP 000005; Ex. 58 at TMP 000155; Ex. 59 at TMP 000148; Ex. 60 at TMP 000265; Ex. 61 at TMP 000254).

[1248]*1248Plaintiffs and the Class Members paid a total of $4,849,000 in refundable membership deposits. In the PSA, Defendant assumed the obligation to repay the membership deposits according to the terms and conditions of the Delivered Club Documents. (DE 227 at 5-6). As previously indicated, one of the obligations- Defendant assumed provides: “In the event of termination of the Membership Plan, termination of any category of membership, recall of the membership or the discontinuance of operation of all or substantially all of the Club Facilities, the members affected will be entitled to a refund of the membership deposit paid within 30 days.” (Plaintiffs’ Trial Ex. 7 at R0000008174; Ex. 8 at R0000001216; ,Ex. 9 at R0000001199; Ex. 56 at TMP 000005; Ex. 58 at TMP 000155-56; Ex. 59 at TMP 000148; Ex. 60 at TMP 000265; Ex. 61 at TMP 000254; DE 146 at ¶¶17, 36, 80d, 103-104; DE 216 at 6, 9).

Fees and Charges

In addition to the payment of dues and refundable deposits, Club members, including Plaintiffs and the Class Members, were obligated by the governing Club documents to pay fees and charges. (Trial Tr. Vol. I at 36-37, 39-40, 54, 125, 142, 154, 172). Fees and charges were and are associated with actual use of the Club facilities and were and are paid in consideration for some form of actual Club usage. (Trial Tr. Vol. I at 39-40, 54, 169-170, 172, 191; Plaintiffs’ Trial Ex. 10 at R000000959-0960, R000000962). A person having no access to the Club facilities would not incur a fee owed to the Club. (Trial Tr. Vol. II at 95). Examples of usage fees include cart, caddie, range, greens, and guest fees. (Trial Tr. Vol. I at 39-40, 54, 112, 125-126; Plaintiffs’ Trial Ex. 10 at R000000959-0960). Examples of usage charges include charges for use of the ballroom, spa, or for consumption for food and beverages at the Club. (Trial Tr. Vol. I at 54, 126, 142, 169-171).

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232 F. Supp. 3d 1243, 2017 WL 448952, 2017 U.S. Dist. LEXIS 56798, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hirsch-v-jupiter-golf-club-llc-flsd-2017.