Country Club Requires 90 Day Notice to Terminate Membership

What is the name of your state (only U.S. law)? Kansas

I hope this is the correct forum for my question.

II recently resigned my membership in a 501(c)(7) private country club where I was a stock member. The stock was to be redeemable for a specified cash amount at the termination of membership. The redemption value of the stock is less than $1,000.

Until recently, membership was on a month-to-month basis with no contract or obligation to pay dues past the requested date of termination. About nine months ago, the board of directors of the country club amended its bylaws requiring members to provide a 90 day notice when terminating their membership. Dues were to be payable during this 90 day period.

After resigning membership I endorsed my stock certificate in order to redeem its cash value. I was then notified of this requirement to give 90 day notice to terminate and I would be responsible for dues during this 90 day period. Further, they refused to pay me the redemption value of the stock. They have now threatened to turn my account over for collection, less the amount of the value of the stock. I also question that the refusal to redeem the stock may be a State securities violation.

I do not see how the country club can require a 90 day notice with the requirement to pay dues absent a written contract. At no time did I sign a contract or agree verbally for payment of dues beyond the month-to-month bases. However, I did sign a membership agreement many years ago stating I would “abide by the bylaws and rules and regulations now in effect and hereafter adopted.” Regardless of this clause in the membership agreement, I do not see how this amendment to the bylaws requiring the 90 day notice can be enforced absent a signed agreement. If they can unilaterally change what I consider was a month-to-month contract for services, then why stop at just 90 days? Why not make it six months, a year or even five years?

Because of the relatively modest amount of money involved here I do not think it would be prudent to consult a local attorney as the fees could easily end up exceeding the value of the stock. I am trying to do my own research before I make a final decision to file suit in small claims court. This is really more a matter of principal than money. Any assistance will be sincerely appreciated, especially if cites or legal precedence can be provided.

Thank you for your help.What is the name of your state (only U.S. law)?

You could have quit when the change was made and then you would have an argument. Otherwise, they DO have a signed agreement for the dues. Such provisions are usually enforced.

I think you're going to have problems (not that this means you shouldn't try), but here are a few thoughts on what you'll be facing.

Specifically, while I agree it seems unfair that the notice period was extended, in the Club's favor are two pretty strong arguments. You admit you signed an agreement (contract) that says you would “abide by the bylaws and rules and regulations now in effect and hereafter adopted.” Had it said you agree to “abide by the bylaws and rules and regulations now in effect and hereafter adopted that you feel are fair”, you'd have some traction. But it is a blanket agreement -- you agreed to follow the rules.

But, you may have an "out" if you can show the rules regarding amending the Bylaws were not complied with (perhaps there was a notice required to be sent, or maybe a quorum wasn't present). Barring that, the Club's main argument is that this is something you contractually agreed to.

Compounding that is the fact that once the rule was changed, you continued your membership. The Club will argue that this shows your implied consent to the rule change. That is, had you not consented, you would/could have terminated your membership then and there, using the old rule for termination. Since you didn't, you clearly agreed to proceed under the new rule.

The possible "out" to this argument concerns whether you should have and/or actually did receive notice of the rule change. It's possible that if you didn't know about it until now, there might be a way to escape out from under it.

All in all, given the amount at stake, you don't have much to lose by filing a small claims suit (other than your time, I suppose), so may as well give it a shot.

Good luck.

Thank you for your very prompt reply. I don't have any reason to believe the Directors did not follow the bylaws regarding bylaw amendments. After the change, I did receive written notice.

Based on your thoughtful analysis, it looks like my claim is rather thin. Thank you for your time.