Leonard Kasler & Company
Members Clubs
(20 Things for Trustees to Know)
1. Until recently, it was thought that a member of a Members Club could not sue the Club.
2. This was because, legally the Club is no more than the sum of its members and an injured member was in fact suing him or herself.
3. This has now been reversed.
4. A Club Committee and its employees owe a member a duty of care to ensure that the premises are safe.
5. In the recent landmark case, a Club member won compensation for personal injury when he tripped over a low wall at the Club when leaving by an unlit exit.
6. It is important for Clubs to evaluate the hazards to members and visitors and to try and eliminate them.
7. Further, insurance policies should be read to ensure that the Club is adequately covered.
8. Another area of interest is the liability of the Club’s Trustees or Committee Members.
9. A recent case found that four club Trustee’s, who signed a mortgage specifying themselves as Trustees, could still be held personally liable for the debt.
10. To avoid this, Trustees, or Committee Members, should either limit the liability to the value of the Club’s assets from time to time under their control, or
11. Specifically state that they are acting without personal liability for any shortfall.
12. This last ‘exclusion’ clause should not exclude all liability, as it may not be upheld by the Courts.
13. An additional protective step is to obtain an indemnity either from all Club members or from the Club’s Management Committee.
14. Licensing is also an area that should concern Clubs.
15. Obviously, if alcohol is being sold, a Licence is required. Applications should be made to the Local Licensing Committee.
16. Further, if there is a television at the club a TV Licence is required.
17. If the club has a Video Recorder, Tape, Record or CD player (i.e. any recorded material) a Licence should be obtained from Phonographic Performance Limited (PPL).
18. If the Club uses non-recorded material a Licence should be obtained from The Performing Rights Society (PRS).
19. The tariff for such Licences are assessed by a Local Licensing Inspector who would look at the floor space and the likely audience.
20. If you are a Club Member, Trustee or on the Committee and have any concerns, please give us a call.
Michael Breeze
Leoanrd Kasler & Company
Sunday, 13. October 2002