Senate Commerce Committee Statement to Senate, No. 825 — State of New Jersey (February 13, 2020)

Summary

The Senate Commerce Committee of the State of New Jersey, in a statement dated February 13, 2020, reports favorably and with committee amendments Senate Bill No. 825. The bill bars health club services contracts from limiting the club's liability to a buyer for injuries caused by the negligence of the owner or operator or an agent or employee. The statement says the bill is intended to codify Justice Albin's dissent in Pulice v. Green Brook Sports & Fitness. A violation 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. The amendments changed the effective date to the first day of the ninth month after enactment.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
825

with
committee amendments

STATE
OF NEW JERSEY

DATED: FEBRUARY
13, 2020

The
Senate Commerce Committee reports favorably and with committee amendments Senate
Bill No. 825.

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
2018-2019 session pending technical review. As reported, the bill includes the
changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS:

The committee amended the bill to change the effective
date of the bill to the first day of the ninth month next following enactment.

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