Often, a club management agreement reads exactly like a hotel management agreement, with the word “hotel” changed to “club.” This should not be the case. Clubs have unique characteristics that should be considered in drafting a club management agreement.

1. If the club is a member-owned club, it is not a profit-seeking business. As a result, the management fee structure would not have a profit based incentive fee, but could have an incentive fee tied to membership sales and retention or members’ satisfaction.


Continue Reading Difference Between Club and Hotel Management Agreements

Lotz vs. Claremont Club, Court of Appeals, Division 2, California (August 15, 2013)

This decision illustrates both the general risk of club liability when liability waivers are unclear and when a club does not follow its written management policies and the unique risk of club liability when a club offers child care. In this case, a member’s child was injured playing dodgeball in the club’s childcare program. The trial court ruled that (i) a release signed by his father barred the claims, (ii) there was no evidence showing the club’s conduct amounted to gross negligence, and (iii) the injuries were an inherent risk in dodgeball. A finding of gross negligence was relevant because in California, a liability release for gross negligence is generally unenforceable. In an unpublished opinion, the Court of Appeals reversed and held that there were triable issues of material fact regarding each of the trial court’s findings.


Continue Reading Claremont Club Case: It’s Not Just Dodgeball