Health Club Contract Question

[lynchrob]

I live MA and recently moved for grad school. I paid up front for a 12 month membership to a local health club. The contract I signed states refunds are available if you move greater than 25 miles away. My move satisfies this requirement. The contract further states "...after notice and reasonable proof to club you will receive back a pro-rated share of monthly membership charges. Refunds are determined by time purchased (Term of Agreement)..." I used the club for 7 months, thus assumed I would receive 5/12 of my original year term agreement as my pro-rated refund due to my move of greater than 25 miles away. The owner sent me a refund for a significantly lesser amount. In his refund letter he agrees I moved far enough away for a refund and that I used the club for only 7 months. The problem is with the amount of the refund. He states that since I only used the club for 7 months they charged my for a 7 month prepaid program (almost the same amount as my 12 month contract). So I received a much smaller refund. Can contracts be switched in duration as they have done? I think the contract wording is on my side since I should receive a "pro-rated share of monthly membershipn charges...determined by time purchased (Term of Agreement)", which was a 12 month agreement-not a 7 month agreement. I thank you for any help offered.

 

[loku]

I agree with you that the plain English meaning of "pro-rated share of monthly membership charges...determined by time purchased (Term of Agreement)", in your case would be for you to get back 5/12, and the “plain English meaning” of terms is what a court looks for in a contract. However, even if somehow a court determines that the meaning is ambiguous, you would win this. When a contract is ambiguous, the ambiguity is resolved in favor of an individual, who had to take the contract or leave it, and against the organization that drew it up.

So I would say, you had an excellent chance of prevailing on this in the Small Claims court.

 

[lynchrob]

I thank you for your quick reply. I will contact the owner and see if logic can prevail. I still have my copy of the signed contract and it's refund terms. I will point out (to the owner) the excerpts (from the contract) posted in my original thread in regards to refund procedure. I hope it will allow an amicable resolution. Again I sincerely thank you for your timely advice and suggestions.