Legal Question in Consumer Law in California

Breach of assigned contract

Hello:

I entered into a contract with Gym #1, where I paid a 2-year membership up front. 6 months into my membership, the gym closed its doors. They posted a notice on the door that said that they transferred my membership to Gym #2. I visited Gym #2 several times and told the receptionist that I was a former member of Gym #1.

Then, I received a letter in the mail from Gym #2 asking for $49 to transfer my membership, and that they had ''acquired'' all memberships from Gym #1. I sent them a letter saying that I would not pay the additional membership, as they were asking for additional consideration, and I originally bargained for a 2-year membership at a gym, therefore they should honor my original agreement.

They denied my request.

Can I sue Gym #2 for breach of an assigned contract? I cannot locate the owner of Gym #1.

Thanks,

Paul


Asked on 4/23/04, 5:30 pm

1 Answer from Attorneys
Roy Hoffman Law Offices of Roy A. Hoffman

Re: Breach of assigned contract

I suspect that your claims are for less than $5,000.00, so you could possibly sue Gym No. 2 for breach of contract, assuming that they actually were "assigned" the contract. When one assumes the contract of another, they generally "step into the shoes" of the assignor, and all claims and defenses against the assignor (the original gym in this case) become the claims and defenses of the assignee (Gym No. 2).

That having been said, it sounds as though Gym No. 2 is seeking some sort of "administrative fee" for accepting your membership, as opposed to seeking "additional consideration." Look at your "contract" with Gym No. 1 to see if it addresses this situation. If not, and you sue in small claims court, the worst that could happen is that you loose your filing fee ($12.00) and a day of work. On the other hand, the best thing would be a successful action. Of course, you won't be going to the gym either.

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Answered on 4/23/04, 6:03 pm


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