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918 F. Supp. 2d 708
S.D. Ohio
2013
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Background

  • Plaintiffs filed a class action in Ohio against Global Fitness Holdings, LLC, d/b/a Urban Active, alleging deceptive contract practices and related claims.
  • Global Fitness removed the action to this court under CAFA, asserting numerous contractual and consumer-protection violations under OCSPA, OPECA, and ODTPA, among others.
  • Plaintiffs asserted misrepresentations at sale, unauthorized withdrawals, failure to provide copies of contracts and cancellation notices, and failure to honor cancellations in Ohio facilities.
  • Defendant moved for partial judgment on the pleadings in August 2011 and again in February 2012, seeking dismissal of several counts, including breach of contract and OCSPA/OPECA claims.
  • In March 2012, the Court addressed the first motion; it denied some aspects and limited class claims under OCSPA and OPECA; the second motion remained unresolved at that time.
  • In May 2012, Plaintiffs moved for certification or reconsideration to address whether consent judgments provide proper notice under RC 1345.09(B); the Court denied both requests.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Certification of Ohio law question on notice Goes to whether consent judgments in PIF give prior notice under RC 1345.09(B). Certification would delay and is not warranted; Ohio law is unsettled but has been decided below. Denied
Motion for reconsideration on notice issue Consent judgments in PIF provide prior notice; ask to reconsider or defer to Ohio Supreme Court. No clear error; Charvat/Kline discussed; no manifest injustice. Denied
Second Motion for Partial Judgment on the Pleadings Contract terms and notices show eligibility for OCSPA/OPECA claims; exhibits raise questions of contract validity. Documents attached govern contract terms; exhibits authenticate the alleged agreements. Denied

Key Cases Cited

  • Lehman Bros. v. Schein, 416 U.S. 386 (U.S. 1974) (certification discretionary; unsettled state law not mandatory)
  • Transamerica Ins. Co. v. Duro Bag Mfg. Co., 50 F.3d 370 (6th Cir. 1995) (certification is not obligatory; used for unsettled issues)
  • Pennington v. State Farm Mut. Auto Ins. Co., 553 F.3d 447 (6th Cir. 2009) (late certification requests disfavored)
  • Marrone v. Phillips Morris USA, Inc., 850 N.E.2d 31 (Ohio 2006) (class action availability tied to public inspection of judgment)
  • Robins v. Global Fitness Holdings, LLC, 838 F.Supp.2d 631 (N.D. Ohio 2012) (courts may consider contract copies attached to motions to dismiss if authenticity not challenged)
  • Inge v. Rock Fin. Corp., 281 F.3d 613 (6th Cir. 2002) (Rule 59(e) standard for reconsideration)
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Case Details

Case Name: Gascho v. Global Fitness Holdings, LLC
Court Name: District Court, S.D. Ohio
Date Published: Jan 16, 2013
Citations: 918 F. Supp. 2d 708; 2013 U.S. Dist. LEXIS 6596; 2013 WL 170112; Case No. 2:11-CV-00436
Docket Number: Case No. 2:11-CV-00436
Court Abbreviation: S.D. Ohio
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    Gascho v. Global Fitness Holdings, LLC, 918 F. Supp. 2d 708