Genesis Health Clubs involved in two new lawsuits

UPDATED — Genesis Health Clubs is involved in two new lawsuits, one that it has filed and one that has been filed against the business.

First, Genesis is suing its Rock Road club tenant Beautydot, a medical spa that used to be at the Shops at Tallgrass.

According to the suit, part of Beautydot’s rental depends on its gross sales and sales from anyone subleasing the space.

The suit says Beautydot hasn’t shared information about gross receipts or made payments based on those receipts.

Also, the suit says Genesis believes someone may be subleasing part of the space without permission.

No one at Beautydot immediately returned a call or e-mail for comment.

In February, Genesis served Beautydot a notice to vacate its space, which the suit says the business has not done.

A phone at the business still has a Beautydot message.

Beautydot has filed a counterclaim, and Genesis has filed a motion to dismiss it.

In the other lawsuit, Willowbend Golf Club is suing Genesis and co-owner Rodney Steven II over a shared-member agreement between the clubs that started in 2011.

The suit says that the agreement was extended in 2017 and the fee structure for the joint dues was modified. It says Genesis still had to collect payments and give part of the dues to Willowbend.

Willowbend alleges that Genesis has not paid what it owes.

The suit says Genesis owes $30,517.13 from May 2019 through February 2020.

The general manager of Willowbend did not return a call for comment.

No one with Genesis would comment on either lawsuit.

Genesis also recently had a claim with the city and won a $189,659.52 settlement over a malfunctioning chiller at the Wichita Ice Center, which it manages for the city. The malfunction caused the center to close for three months.

“Due to the uncertainty and risk of an adverse judgment at trial, the Law Department recommends the settlement,” said notes from the City Council’s April 28 agenda. “The settlement of this claim does not constitute an admission of liability on the part of the City; rather, it is merely a settlement to resolve a disputed claim.”

Wichita carries business interruption insurance at the center, and that’s what paid the settlement.

This story was originally published May 20, 2020 at 2:28 PM.