Markey v. Jonathan Club

The Jonathan Club (the club) (defendant) was a nonprofit mutual-benefit corporation that operated a beach facility in Santa Monica for social and recreational purposes. Christian E. Markey III (plaintiff) was a member of the club. In December 1997, an incident occurred between Markey and three minor girls. Two police reports were filed, and three misdemeanor counts of annoying or molesting a minor were charged against Markey. Markey pleaded no contest to the charges and was placed on probation for three years. Additionally, Markey was ordered to pay restitution to the victims, have no contact with the girls, and undergo psychological testing. Under state law, a no-contest plea to misdemeanor charges could not be legally used as an admission of guilt in any civil suit or administrative hearing. In due course, the club notified Markey that the board of directors had decided to expel him from the club, considering the facts and circumstances of the incident, the location, and the outcome. The club’s bylaws allowed the expulsion of any member for conduct that was “prejudicial to the best interests, welfare, character, and reputation” of the club. Markey was given proper notice of an expulsion hearing. Prior to the hearing, Markey submitted a 25-page letter to the board explaining his reasons for opposing the proposed expulsion. At the hearing, which occurred before a three-member committee of the board, Markey was represented by counsel. Subsequently, Markey sent another letter to the board stating his contentions. Thereafter, the board voted unanimously to terminate Markey’s membership. Markey sued the club seeking to compel reinstatement of his membership. The trial court denied relief. Markey appealed, arguing that he did not receive a fair expulsion procedure, that he was unreasonably expelled, and that the club improperly used his no-contest plea.