The Ohio Court of Appeals recently reversed a summary judgment in favor of Rising Stars Boxing Gym, allowing Jared Rowley to pursue his claims against the gym for alleged violations of the Prepaid Entertainment Contracts Act (PECA). This decision is significant for consumers who may face similar issues with gym memberships and other prepaid contracts.
On June 30, 2026, the court ruled on the case of Rowley v. Rising Stars Boxing Gym, No. 26AP-63, after Rowley appealed a January 8, 2026 judgment from the Franklin County Municipal Court. Rowley claimed that the gym charged him for services he did not authorize after he moved from Columbus, Ohio, to Boston, Massachusetts.
The dispute began when Rowley purchased a one-month gym membership for $180 on November 11, 2024. He informed the gym that he would only use the membership for the duration of his stay in Columbus, which ended on November 24, 2024. However, Rowley alleged that the gym charged his account an additional $720 for four months of membership fees without his authorization. He claimed that the gym did not provide him with a written contract or the required cancellation and refund disclosures under Ohio law.
Rowley filed his complaint against Rising Stars Boxing Gym and its owner, Ryan C. Dickey, on June 10, 2025. He asserted several violations of PECA, including failure to provide a written contract with cancellation rights, failure to inform him of his three-day right to cancel, and failure to process his refund after he relocated more than 25 miles from the gym.
In their defense, the gym claimed that Rowley had purchased a monthly membership online and could cancel it with 30 days' notice. They argued that Rowley did not cancel his membership as required. The gym supported its motion for summary judgment with an affidavit from Dickey, who stated that Rowley never prepaid for membership and that all services were available to him immediately upon payment.
On January 6, 2026, a magistrate of the trial court granted the gym's motion for summary judgment, concluding that Rowley had not canceled his membership and that he had no intention to do so. The trial court dismissed Rowley's case with prejudice, meaning he could not bring the same claims again.
Rowley appealed the decision, raising four assignments of error. He argued that the trial court misapplied the law, failed to consider his timely filed opposition, denied his motions for remote appearance, and resolved disputed facts without proper evidence.
The Ohio Court of Appeals reviewed the case and focused on whether the trial court erred in granting summary judgment. The court found that genuine issues of material fact remained regarding whether the gym violated PECA. Specifically, the court noted that the gym had not produced a written contract or provided Rowley with the required cancellation notice.
The court stated, "Viewing all facts in the light most favorable to Mr. Rowley, as we must at the summary judgment stage, we therefore find genuine issues of material fact remain as to whether appellees violated the PECA."
As a result, the court reversed the trial court's judgment and remanded the case for further proceedings. This ruling allows Rowley to continue pursuing his claims against the gym, potentially impacting how gyms and other businesses handle prepaid contracts and consumer rights.
The decision is significant for consumers who may find themselves in similar situations, as it reinforces the importance of compliance with consumer protection laws like PECA. The ruling emphasizes that businesses must provide clear contracts and cancellation policies to avoid potential legal disputes.
Looking ahead, the case may set a precedent for how courts interpret PECA and the obligations of businesses to provide consumers with adequate information about their contracts. It also highlights the importance of proper documentation in consumer transactions.
As of now, it is unclear whether the gym will appeal the decision. However, the case serves as a reminder for consumers to be aware of their rights when entering into contracts and to ensure they receive all necessary documentation and disclosures.