Posted: Aug 17, 2012 5:50 AM CDTUpdated: Aug 17, 2012 5:50 AM CDT
HUNTINGDON VALLEY, Pa. – The U.S. Justice Department says it has reached a settlement with the Valley Club in Huntingdon Valley, Montgomery County.
More than two years ago, the swim club was sued for race bias.
According to the Justice Department, a Northeast Philadelphia day camp called Creative Steps Inc. had paid the club a fee to give its campers access to the club’s swimming pool for the summer. But on the first day they swam, the black and Hispanic children reported hearing racial slurs while enjoying the pool.
On July 3, 2009, the club refunded the day camp’s membership fee and prohibited the children from returning to swim.
The club said there were just too many campers and not enough lifeguards.
Valley Club filed for Chapter 7 bankruptcy protection in November 2009. The club property was sold in June 2010 for $1,460,000.
The settlement agreement stipulates that once the administration of the estate and the bankruptcy case is closed and after paying allowed costs and fees, the remaining assets will be paid to more than 50 children, their camp counselors and to Creative Steps.