No Protection for the YMCA Under the Charitable Immunity Act (NJ)

We previously shared our thoughts on Walters v. YMCA as to whether an exculpatory release signed by the plaintiff at the inception of his membership relieved the YMCA of liability.  At that time, the Appellate Division ruled that the release was unenforceable as the injury was unrelated to the plaintiff’s use of the fitness center’s equipment.

Having been denied that the defense, the YMCA recently sought protection under New Jersey’s Charitable Immunity Act, N.J.S.A. 2A:53-7. The CIA protects charitable organizations from tort liability, provided the organization is: 1) formed for non-profit purposes; 2) organized exclusively for religious, charitable or educational purposes; 3) promotes such purposes at the time of the plaintiff’s injury; and 4) the plaintiff was a beneficiary of the organization’s charitable works. Although the YMCA is considered a haven for children’s activities and after school programs, the the court found that it is not entitled to charitable immunity.

The YMCA put forward its mission statement on its purpose to “promote the moral, spiritual, physical and mental welfare of the young men and boys of the community” to  try to establish that it was organized exclusively for religious and/or educational purposes. The court was not convinced. Likewise, noting that the primary function of the YMCA organization is a fee-based fitness center, the court determined that the YMCA is also not exclusively a charitable organization. The court also noted that only a single digit percentage of the YMCA’s revenue for the year of the plaintiff’s accident came from charitable contributions and grants, with the remainder generated by fee-based services.  As such, the court founds it was not entitled to protection under the CIA

We will continue to follow the case as it winds its way through the trial court.  Thanks to Emily Kidder for her contribution to this post and please write to Mike Bono with any questions.