Senate Commerce Committee Statement to Senate, No. 1481 — State of New Jersey (June 12, 2025)

Summary

This New Jersey Senate Commerce Committee statement to the Senate, dated June 12, 2025, reports Senate Bill No. 1481 favorably. The bill bars health club services contracts from limiting a health club's liability to a buyer for injuries resulting from the negligence of the owner or operator or an agent or employee. According to the statement, the bill is intended to codify Justice Albin's dissent in Pulice v. Green Brook Sports & Fitness. Violations would be an unlawful practice under the consumer fraud act, punishable by not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense, and can lead to cease and desist orders, punitive damages and treble damages.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
1481

STATE
OF NEW JERSEY

DATED: JUNE 12,
2025

The Senate Commerce Committee reports favorably Senate
Bill No. 1481.

This
bill prohibits health club services contracts from limiting the liability of
the health club to a buyer for injuries caused by or resulting from the
negligence of the owner or operator, or an agent or employee of the owner or
operator, of the health club.

This
bill is intended to codify Justice Albin’s dissent in the case of Pulice v. Green Brook Sports & Fitness , 236 N.J. 1 (2018); see also Stelluti v. Casapenn , 203 N.J. 286 (2010) (Albin, J., dissenting) (arguing
that a contract limiting a health club’s liability from its own negligence is
void as against public policy).

A
violation of this bill would be an unlawful practice pursuant to the consumer
fraud act, P.L.1960, c.39 (C.56:8-1 et seq.), and is punishable by a monetary
penalty of not more than $10,000 for a first offense and not more than $20,000
for any subsequent offense. In addition, violations can result in cease and
desist orders issued by the Attorney General, the assessment of punitive
damages, and the awarding of treble damages and costs to the injured party.

This
bill was pre-filed for introduction in the 2024-2025 session pending technical
review. As reported, the bill includes the changes required by technical
review, which has been performed.

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