NJ Wants $10K Daily Fine Over Gym's 'Brazen' Virus Defiance

By Jeannie O'Sullivan
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Law360 (August 4, 2020, 3:56 PM EDT ) The state of New Jersey wants a Bellmawr gym to pay at least $10,000 for each day it remains open in "brazen" defiance of COVID-19 shutdown orders, marking the latest showdown in the biggest legal battle over the Garden State's closure mandates.

In a letter to Superior Court Judge Robert T. Lougy, Deputy Attorney General Stephen Slocum said Monday that Atilis Gym's two owners kicked down a barricade on the gym's premises Saturday and let in patrons as a crowd of supporters and news reporters stood by. The move came days after the owners were arrested and held in contempt for violating a previous order to limit operations.

The ongoing flouting of the pandemic orders puts the public's health and safety in danger, making it clear sanctions and relief are warranted, Slocum wrote.

"Defendant Atilis Gym's brazen conduct is abhorrent to an organized judicial system, jeopardizes the public health and the safety of New Jersians, and must not be tolerated," the letter said.

The deputy attorney general pointed out that the $10,000 daily sanction is within the gym's means since it has raised more than $143,000 through GoFundMe for its legal fees, and is appropriate due to the "galling nature" of the owners' behavior.

Also, the state wants to recoup the $4,888 in legal fees it racked up lodging the contempt motion, according to the letter.

The battle began in federal court with Atilis' May lawsuit alleging that Gov. Phil Murphy's March shutdown of nonessential businesses runs afoul of federal civil rights laws as well as the due process and equal protection clauses of the Fifth and 14th amendments to the U.S. Constitution. Owners Ian Smith and Frank Trumbetti criticized the orders in interviews with local and national media outlets.

The arguments moved to state court, where Murphy and health officials already had an action pending over the gym's refusal to close. Meanwhile, the gym began racking up summonses after repeatedly reopening even despite Murphy's mandate and health department order specifically targeted at the gym.

The state moved for sanctions in July when the gym refused to comply with a relaxed order to limit operations to individualized, appointment-based instruction. Judge Lougy initially refused, but switched gears days later after a Camden County surveillance team and state health investigators observed continued defiance.

On July 27, Smith and Trumbetti were arrested and released with a disorderly persons summons for one count each of contempt, obstruction and violation of the New Jersey Disaster Control Act. Three days later, Smith publicly announced plans to kick down the barricade on Aug. 1.

Asked for comment, a spokesperson for the New Jersey Attorney General Gurbir S. Grewal referred to the content of the letter.

An attorney for the gym did not immediately respond to a request for comment.

New Jersey is represented by Stephen Slocum of the attorney general's office.

The gym is represented by Christopher Arzberger of the Russell Friedman Law Group LLP and James G. Mermigis of The Mermigis Law Group PC.

The case is Persichilli v. Atilis Gym of Bellmawr, case number MER-C-48-20, in the Superior Court of New Jersey, Mercer Vicinage Chancery.

--Editing by Abbie Sarfo.

For a reprint of this article, please contact reprints@law360.com.

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