LA Fitness Member: Early-Termination Fees Forced, Unreasonable

LA Fitness members must sign contracts that include early-termination fees that do not reflect the gym chain's costs and are meant to deter unsatisfied customers from canceling their personal training services, according to a California federal court suit.

The Irvine, Calif.-based company charges customers an early-termination fee equal to half the cost of a full personal training contract, which can run from three to 12 months, if the contract is canceled after a 72-hour trial period, the suit says.

Plaintiff Cory Abramowicz, of Illinois, filed suit against the fitness chain in the U.S. District Court for the Central District of California on behalf of all LA Fitness members who have been charged the termination fee.

LA Fitness charges the fees not to compensate it for the cost of customers' canceling their memberships, the suit says, but to deter members from canceling and to penalize those who do.

The contract that members are required to sign is a pre-printed form agreement that is not open to modification or negotiation, the suit says. Members must either "take it or leave it."

Abramowicz alleges that the early-termination fees have meant huge profits for the fitness chain, although no estimate is provided in the complaint.

The collection of excessive termination fees is an illegal business practice in violation of California's business codes and consumer protection laws, according to Abramowicz.

He says the fees are not a reasonable measure of the damages the defendant could face as a result of broken contracts. According to the complaint, the contract is one of adhesion, which members have no choice but to accept, and is unfair.

Abramowicz seeks damages and an injunction to stop LA Fitness from collecting the termination fees.

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He is represented by Joshua H. Haffner of Kabateck Brown Kellner LLP in Los Angeles.