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The Gym 24/7 Fitness LLC v State of Michigan

Michigan Gyms and Fitness Centers COVID-19 Closure Class Action Lawsuit
Closed Gym

Background

Please fully read this material. You need not take action at this time but you may wish to contact the law firm.

Two Minute Explainer - Michigan Gyms and Fitness Centers COVID-19 Closure Class Action Lawsuit

In March 2020, Michigan Governor Gretchen Whitmer declared a state of emergency in response to the COVID-19 outbreak in Michigan. She thereafter issued numerous executive orders in response to COVID-19 dramatically changing and affecting businesses, individuals, and citizens. Throughout the "Executive Orders," it was continuously ordered that gymnasiums, fitness centers, recreation centers, sports facilities, exercise facilities, exercise studios, and like-kind businesses be shut down for the public purpose of stopping or minimizing the spread of COVID-19. The problem, however, is that such a decision placed the cost of these Executive Orders – issued for the benefit of the public – squarely upon the shoulders of private businesses and failed to justly compensate affected parties for these takings undertaken for the benefit to the general public. Many gymnasiums, fitness centers, recreation centers, sports facilities, exercise facilities, exercise studios, and like-kind businesses (in whatever legal form) were on the verge of economic collapse as a direct result of the actions taken in response to the novel coronavirus (“COVID-19”) health response.

Other previous court cases had judges not correctly characterizing the real threat to the gym businesses, their operations, and their continued viablity. As the Sixth Circuit noted: we sympathize deeply with the business owners and their patrons affected by the Governor's Order. Crises like COVID-19 can call for quick, decisive measures to save lives. Yet those measures can have extreme costs — costs that often are not borne evenly. However, the Supreme Court has explained that our constitutional "guarantee that private property shall not be taken for a public use without just compensation was designed to bar Government from forcing some people alone to bear public burdens which, in all fairness and justice, should be borne by the public as a whole."

On July 8, 2020, an Alma, Michigan gym - The Gym 24/7 Fitness LLC - brought a class action "takings" lawsuit against the State of Michigan.

Unlike other COVID-challenge cases, this suit specifically did not seek to contest whether Governor Whitmer’s decision to issue the Executive Orders were prudent or were not within her authority to issue. Instead, the lawsuit asserts that when the government "takes" property for a public purpose by a regulation that goes too far, the US and Michigan Constitutions require the payment of just compensation when eminent domain proceedings are not first commenced.

In response to the lawsuit, the State sought immediate dismissal of the lawsuit. The trial court judge denied the State's request. The State then took an early appeal and a stay of all proceedings was imposed over objections. After briefing and oral argument by Zoom, the Court of Appeals reversed and held there was no constitutional responsibility to compensate affected gymnasiums, fitness centers, recreation centers, sports facilities, exercise facilities, exercise studios, and like-kind businesses when the government shuts down these businesses. Counsel for The Gym 24/7 appealed to the Michigan Supreme Court. On March 17, 2023 - nearly three years after first bringing suit - the Supreme Court agreed to take up the case for oral argument. It also invited seven other organizations and entities offer their input as well.

Class Actions

What is this class action all about?

A class action lawsuit consolidates similar or identical claims of many people into a single lawsuit against one or several defendants. Class actions are cost effective ways of resolving many legal disputes that have a lot in common.

In a typical class action, a plaintiff sues a defendant or a number of defendants on behalf of a group, or class, of absent parties. This differs from a traditional lawsuit, where one party sues another party for redress of a wrong, and all of the parties are present in court. Instead of each person bringing his or her own individual lawsuit by an individual lawyer, the class action allows all the claims of all class members — whether they know they have been damaged or not — to be resolved in a single proceeding through the efforts of the representative plaintiff(s) and appointed class counsel.

A class action attorney helps initiate and handle a class action, and advocates for the Class and argues against the sued governments and their officials and attorneys in court. Class action attorneys are generally paid a percentage of the money that is recovered on behalf of the Class. Some lawsuits that involve civil rights will require the government to pay all or some of the attorneys' fees due to their illegal actions. All attorney fees must be reviewed and approved by the court.

FAQs

What is a Class Action?

    A class action suit occurs when, with court approval, many different people's similar complaints are combined in a single action represented by a lead plaintiff or class representative who suffered a similar wrong. This saves court time and allows a single judge to hear all legal claims at the same time, and come to one judgment or settlement for all members of the class. Many times, members of the class can get a favorable outcome without having to participate in the day-to-day litigation obligations.

Who is eligible to participate in the final outcome?

    In this case, a class is being pursued to vindicated the rights of certan gyms and fitness centers who were shuttered as a result of the State of Michigan's response to the arrival of COVID-19 to Michigan in 2020. The court has not yet defined scope of or certified any class.

Who is the Lead Plaintiff / Class Representative?

    Currently, The Gym 24/7 Fitness LLC is the named lead plaintiff and proposed class representative, but others may be added. At the request for class counsel, the court reviews and appoints a Class Representative to prosecute the lawsuit on behalf of the members of the Class. An individual plaintiff, a group of individuals or other entity can serve as a Class Representative. The court has not yet named a class representative.

Who is Class Counsel?

    The court has not yet named class counsel. However, the attorneys seeking class appointment are attorneys Philip L. Ellison and Matthew E. Gronda.

What do I need to do to be part of the class?

    No action is yet required on your part at this time. However, if you believe you are a shuttered gym or fitness center, you are encouraged to contact the lawyers with your contact information.

What are the Costs and Expenses for me?

    Costs and Expenses of the lawsuit are usually advanced by the law firms prosecuting on behalf of the Class. The class counsel works on a contingent fee basis. That means Class Counsel will ask the court to award reimbursement of the out-of-pocket expenses and attorneys’ fees -- usually a percentage of the total recovery -- but upon being successful.

Contact

You can contact us directly at:

    Law Office of Outside Legal Counsel PLC
    PO Box 107
    Hemlock, MI 48626
    (989) 642-0055

Official Class Action Website of The Gym 24/7 Fitness LLC v State of Michigan