At the time of the announcement that the park would not be opening, The Beach had already sold 8,800 season passes. But rather than offering full refunds to the thousands of consumers who had purchased waterpark passes, the Beach offered a collection of day passes and various discounts to other local attractions, such as Kings Island and the Cincinnati Zoo, that it said was valued at "close to $200." Season passes to The Beach had most recently been sold for $89.99.
In response, 427 people filed complaints with the Ohio Attorney General’s office, resulting in the May 25 filing of a lawsuit against The Beach by Attorney General Mike DeWine. The lawsuit charges the business with failure to deliver, a violation of Ohio’s Consumer Sales Practices Act.
"It's unfortunate when a long-standing Ohio business closes," DeWine said in a press release. "But The Beach Waterpark took money from thousands of consumers and never delivered promised services. That's unacceptable."
The Beach in recent years has seen increased competition from such nearby attractions as Kings Island’s Soak City waterpark and the Great Wolf Lodge, which opened an indoor waterpark in Mason in 2006. In response to The Beach’s closing, Kings Island offered discounted rates for upgrades to its season passes and a complimentary visit to its amusement park and waterpark for Beach pass holders.
Dan Tierney, spokesman for DeWine, says companies that go out of business often refund money or provide a different product or service in place of that which was previously purchased, but it must be of equal or greater value and meet the consumer’s satisfaction.
“That has not occurred in this case,” Tierney says.
The lawsuit alleges that The Beach’s ownership partners have committed unfair or deceptive acts and practices in violation of the Failure to Deliver Rule and Consumer Sales Practices Act. Each violation of the Consumer Sales and Practices Act is punishable by a $25,000 fine. The lawsuit asks for reimbursements for all consumers, legal and court costs, an injunction and civil penalties.
“There’s a possible penalty on the punitive side of $25,000,” Tierney says. “That being said, the goal of this, because there is no bankruptcy protection, is to help affected consumers get refunds.”
According to Tierney, if The Beach had filed bankruptcy protection, the company would be protected and each individual consumer would need to file failure to deliver lawsuits.
“During a bankruptcy consumers can become creditors for not being delivered products,” Tierney says. “In absence of that they would have to each individually file failure to deliver lawsuits, but the attorney general is doing it on behalf of Ohio consumers.”
The lawsuit was filed in the Hamilton County Court of Common Please against the park’s owners and operators: The Beach at Mason Limited Partnership and Dayton-based Water Parks, Inc., and Cabana Equities, Inc.
According to the lawsuit, the Beach’s operators decided to close the waterpark on March 7, two days before announcing the canceled season and lack of refunds.
The attorney general’s office is encouraging other consumers who purchased passes to The Beach Waterpark to file a complaint a www.ohioattorneygeneral.gov.
An institutional shareholder at Cintas Corp. will make a motion at the company’s annual meeting later this month seeking to have an independent chairman appointed to its board of directors to improve oversight and increase company performance.
Representatives for the North Carolina Retirement Systems (NCRS), which represents the pension investments of retired North Carolina state employees, said objective oversight is needed at Cintas to represent shareholders and “reverse a five-year trend of underperformance.”
At the company’s annual meeting on Oct. 14th, the pension fund will also support a proposal seeking an advisory shareholder vote on executive pay and will oppose appointing nominee David Phillips to the firm’s board of directors.
The various proposals are supported by Risk Metrics/ISS Governance Services and Glass Lewis, which offer proxy services to institutional shareholders.
Although Cintas is the largest uniform rental company in North America, its stock has underperformed the S&P 500 and its peers for the past five years, according to pension fund representatives. Cintas’s share price is down 18 percent during that period, while shares of its largest publicly-traded competitors are up 83 percent and 4 percent respectively.
Also, Cintas has lost market share in recent years, a trend that accelerated in 2008.
“These proposals offer an opportunity to make real change at a company that is underperforming and failing to address the concerns of shareholders,” said State Treasurer Richard Moore, who manages NCRS, in a prepared statement. “I encourage other institutional investors and shareholders to vote for these proposals and for improved governance at Cintas.”
Some shareholders contend that current Board Chairman Richard T. Farmer and his son, Cintas CEO Scott Farmer, have stacked the 11-member board of directors with friends and close associates that too closely follow the Farmer family’s directives. Cintas began as a private company started by Richard Farmer’s grandfather in 1929, before it was taken public in 1983.
Another institutional shareholder, CtW Investment Group, first proposed blocking Phillips’ appointment to the board due to what it described as an undisclosed conflict of interest and weak leadership in his role as the company’s Nominating and Corporate Governance Committee chairman.
“As lead director and chairman of the Nominating and Corporate Governance Committee, Mr. Phillips bears responsibility for many of the company’s questionable governance practices, which include … inadequate response to legitimate governance concerns,” Michael Garland, a CtW executive, wrote in an Oct. 1 letter to other shareholders.
The letter continues, “As discussed above, nominee Phillips serves as trustee of Cincinnati Works, which received over $200,000 in charitable contributions from foundations controlled by insiders and affiliates of the Company. We question the need for the Company to engage in such significant charitable contributions with one of its directors, especially considering the amount of such contributions as a percentage of Cincinnati Works’ annual revenue.”
In July, yet another institutional shareholder — the Manville Personal Injury Settlement Trust — filed a lawsuit alleging the firm’s board of directors isn’t fulfilling its fiduciary duties and fosters a corporate culture that ignores safety regulations.
At least 10 Cintas facilities nationwide have been cited for safety violations by the U.S. Occupational Safety and Health Administration (OSHA) in just over the past year.
OSHA imposed a $2.78 million fine against Cintas last year for violations that led to the death of Eleazar Torres-Gomez at the company’s laundry facility near Tulsa, Okla., in March 2007. Gomez died after he jumped onto a conveyor belt to dislodge clothes and was dragged into an industrial dryer, where he burned to death.
Federal and state inspectors have issued citations against Cintas facilities in Alabama, Arkansas, California, Illinois, Indiana, Ohio, Texas and Washington.
Since 2003 Cintas has been cited for more than 170 OSHA violations in its facilities, including more than 70 citations that OSHA deemed could cause “death or serious physical harm.”
Cintas representatives say the company has adequate safety procedures and blame the accidents on workers who don't follow their training on how to handle machinery.
Based in Mason, Ohio, Cintas is the largest uniform supplier in the United States. Cintas reported $531 million in profits for the 2008 fiscal year, which ended in May.— Kevin Osborne
The National Underground Railroad Freedom Center is suffering from a poor economy and continuing financial trouble.
The center announced today that they will be laying off 17 full-time employees, by the end of the year, leaving a staff of 47.
The museum will also no longer be open on Sundays.
Last year, the Freedom Center was caught up in a battle at City Hall when Councilman Chris Monzel attempted to redirect a proposal to give the center $800,000 to pay for speed humps.
At the time this sum was delivered, a $25 million debt remained for the $110 million construction of the center.
The museum has been criticized by state and local officials for requesting public funds after Freedom Center President Ed Rigaud said the center wouldn’t ask for additional public money to balance its books, even after projected and actual attendance numbers dropped dramatically.
Attendance at the center peaked in its first full year open in 2005 at just over 200,000. The numbers have been falling ever since.
For Christmas, the Freedom Center might want to ask for financial independence.
The new year already is looking a lot like the old one for employees at The Enquirer.
Workers at Cincinnati's only remaining daily newspaper got some bad news Wednesday: They can expect to take another five-day furlough during the first quarter of 2011. Robert J. Dickey, who is U.S. newspaper division president at The Gannett Co., The Enquirer's parent firm, announced the latest round of furloughs in a memo sent to workers.
City Council is considering increasing cab fares prior to the World Choir Games in July as part of an overhaul of the city’s taxi industry. During a Rules and Government Operations Committee meeting Monday, Councilman Wendell Young described the industry as having little regulation and often undesirable experiences, The Enquirer reports. Council last spring removed a city rule that made it illegal to hail a cab. Among the recommendations expected to be made are the standardization of rates, an increase in the number of permanent taxi stands and the visible display of a Customer Bill of Rights.
The two men hired to beat a Columbia Tusculum man over a property dispute admitted in court yesterday to having been paid by Robert Fritzsch to whoop on Tom Nies Jr. The beaters will avoid jail time in exchange for testifying against Fritzsch. The beating was allegedly a retaliation after a court ordered the removal of Fritzsch's addition to his home that blocked the river view of Nies' house.
Robert Chase is a member of Ohio’s oil and gas commission, in addition to operating a private consulting firm that deals with many of the private companies interested in making mass money off the state’s drilling leases. The Ohio Ethics Commission this week warned Chase that such consulting work could present a conflict of interest, though Chase says he’s not surprised and that he knows what his ethical responsibilities are.
NBC has picked up a
sitcom set in Cincinnati starring Anne Heche, who reportedly plays an
Indian Hill housewife who believes she can channel God after
surviving an accident involving nearly choking on a sandwich (with
humorous results?). The show, which will have a 13-episode first season, is titled Save Me.
The Obama administration might be hinting at considering same-sex marriage rights during a second term, but the folks down in North Carolina are having none of it: A state constitutional amendment to ban gay marriage and civil unions is on today’s ballot, despite the existence of a state statute that already outlaws it.
Meanwhile, the Obama administration is busting Mitt Romney up for choosing not to address a woman’s suggestion that Obama should be tried for treason.
During an event near Cleveland yesterday, a woman asked Romney if he thinks President Obama is "operating outside the structure of our Constitution," and "should be tried for treason."
Romney did not respond to the treason comment, but instead criticized Obama's recent comments on the Supreme Court -- drawing a rebuke from the Obama campaign.
Romney says he doesn’t correct all the questions that are asked of him and that he obviously doesn’t believe Obama should be tried for treason. USA Today pointed out that the incident is similar to one that occurred during the 2008 election, which John McCain handled quite differently:
It was one of the defining moments of the 2008 presidential campaign: A woman at a rally for Republican John McCain, while asking McCain a question, called Democratic contender Barack Obama "an Arab" who couldn't be trusted.
McCain took the microphone and said, "No ma'am. He's a decent family man ... who I just happen to have disagreements with on fundamental issues." McCain's response symbolized his discomfort with the volatile crowds he was seeing as his campaign faded during the final days of the 2008 race.
A study suggests that fighting obesity will necessitate a broader approach than blaming the individual, likely involving schools, workplaces, health care providers and fast-food restaurants.
Yahoo CEO Scott Thompson has apologized for pretending to have a degree in computer science. Thompson says he’ll update his resume but has no plans to step down.
The U.S. could make a $1.5 billion profit on its bailout of insurance company American International Group, Inc. At least that’s what the Government Accountability Office says.
cars have received their permits in Nevada. What's next? Drive down every single street in America and photographing it?
UPDATE: The Greater Cincinnati Coalition for the Homeless has canceled its Wednesday mock rally for Western & Southern Financial Group. The Coalition Tuesday evening released the following statement: "Due to a change in plans the mock 'Rally to Support Western and Southern' has been canceled. Stay tuned for upcoming gatherings and events to support the Women of the Anna Louise Inn as we fight for the right of self determination."
The following is CityBeat's Tuesday afternoon blog post in response to the event announcement:
The Greater Cincinnati Coalition for the Homeless is helping to organize a mock rally to support what it believes is the bullying of the Anna Louise Inn women’s shelter by Western & Southern Financial Group. The mock group will be called “Citizens for Corporate Bullies” and will hold signs that say “Greed is Good,” “We Support Corporate Bullies,” “Poor Women Not Welcome” and “W&S Take Whatever You Want.” The event begins a noon May 2 at 4th and Sycamore streets.
The Coalition has created a fake persona who supports W&S’s desire to build condos to attract a more desirable class of residents and rhetorically asks, “Besides, what gives the Anna Louis Inn the right to stay in that building just because they own it and it’s been there for a hundred years?”
The protest is in response to ongoing legal issues surrounding the Inn’s proposed expansion and W&S’s development efforts in the neighborhood. CityBeat last October reported on the situation in a story titled, “Putting on the Pressure: Western & Southern won’t take ‘no’ for an answer.” The following is an excerpt summarizing the situation then:
Last summer the facility’s owners rebuffed an offer from the powerful Western & Southern Financial Group to buy their property, triggering a heated legal battle. The company, located near the Anna Louise Inn in the affluent Lytle Park district on downtown’s eastern edge, wanted the site so it could demolish or redevelop the Inn and build upscale condominiums.
After the offer was rejected, the Anna Louise Inn continued with a long-planned renovation and was awarded a $2.7 million loan by Cincinnati City Council. That’s when Western & Southern filed a lawsuit against the Inn and the city, alleging zoning violations.
The showdown pits the Inn, opened in 1909 with the help of prominent attorney Charles P. Taft, against a company that ranks in the Fortune 500 and is headed by CEO John Barrett, an ex-chairman of the Cincinnati Business Committee who is widely considered one of the most powerful men in the city.
The facility’s owners and some city officials say Western & Southern is trying to use its sizable financial resources publicly, along with its political clout behind the scenes, to strong-arm opponents and get what it wants.
Representatives for W&S have stated that the company's $3 million offer to purchase the building is fair and have also offered to aid the Inn in finding a new location.
WVXU reported that supporters of the Inn held a rally April 4 calling for a quick judgment in a court case that could delay funding for the renovation.
Developers of the casino planned at Broadway Commons downtown will hold a session Thursday aimed at increasing the use of subcontractors and suppliers on the project from businesses owned by women or African-Americans.
The session will be held from 5-7 p.m. at the Cincinnati-Hamilton County Community Action Agency, located at 1740 Langdon Farm Road in Bond Hill's Jordan Crossing complex. That's the site formerly known as the Swifton Commons shopping center.