BROOMALL, Pennsylvania (WPVI) -- The Action News Troubleshooters have a story about a local kids program that has recently filed for bankruptcy but continues to operate.
Families say the experience their kids were provided at the business' summer camp was not as advertised.
Shin Karate operates year-round and has several locations in our area.
But our story begins with some Delaware County parents, who are upset over the experience they say their kids had at Shin Karate's summer day camp in Newtown Square. They want to pass along lessons they say their families learned the hard way.
"They were offering gymnastics. They were offering karate lessons," said Michael O'Neill of Broomall.
Shin Karate summer camp claims to be the number one camp program for kids in greater Philadelphia, so Lily Lee and O'Neill enrolled their kids. But both parents say their children didn't get the experience they expected.
"They offered three iPad times a day and that wasn't listed in the original schedule," Lee said.
And excursions required additional fees even though the flyer seems to say otherwise.
"It broke my kid's heart," said O'Neill.
The parents also say the camp did come through with some of the promised activities but not all. For instance, horseback riding never materialized despite a picture of that on Shin Karate's camp website.
And while the camp touted a safe environment with "teachers, instructors, and other professionals, who go through extensive staff training," we talked with Erica Shaw, a former counselor, who says she received no training, no instruction and no guidance.
She says she was hired the day before she started work. Shaw and Shin Karate also had a dispute over her pay.
O'Neill says he pulled his girls out of the camp after eight days and Lee did the same after four days, but neither got their money back.
But perhaps not surprising, considering what we now know, it turns out that back in May, Shin Karate received a notice seeking to evict the business from the Newtown Square camp location.
Shin Karate says it had a dispute with the landlord over conditions, and the litigation is on hold because Shin Karate filed for bankruptcy at the end of August.
"I am mad. I am I'm upset. We're not rich people by any means," said O'Neill.
Through an attorney, the business tells the Troubleshooters that Lee is being refunded $750.
But Shin Karate says it is denying O'Neill's refund request because "there is a legitimate dispute" with him and he was "provided everything that was requested" before he pulled his kids out, and "counselors were placed on staff in anticipation of these slots."
The attorney also says Shin Karate is "not aware of failing to deliver on any obligation," and while one of its locations did close, "the Newtown Square location continues to operate under a new staff."
And Shaw, the former counselor, "met all clearances required for the camp program," the attorney adds.
An attorney representing Louis Castelli and Shin Karate released this statement to Action News:
"The Newtown Square location is still operating. At that location, our client has a legitimate dispute with 1 customer. There is litigation between the landlord and tenant at Newtown Square, which is stayed by bankruptcy protection. There has been no resolution of that matter as of yet. The Newtown Square location continues to operate under a new staff.
Shin Karate is not aware of failing to deliver on any obligation in its contracts.
Our client and Lily Lee reached a resolution in principal, and she is being refunded $750, which includes a full release with non-disparagement.
Our client did not know anything about that issue [iPad viewing] with Lily Lee. She could have called at any time and our client would have addressed her concerns. That said, they have resolved their issues.
There is a legitimate dispute with Mr. O'Neill. That customer was provided everything that was requested, in the timeframe he requested it. For example, Mr. O'Neill was concerned about a bully at the camp and that bully was removed. At one point, the camp was having technical issues with the camp's video camera, which allows parents to see their children in real time. Mr. O'Neill demanded the issue be corrected by a Wednesday or he would remove his children from the camp. The video camera was running by Tuesday and Mr. O'Neill confirmed it was working.
Now he is requesting a refund for three weeks when his children did not attend. The refund was denied because the children were pre-scheduled. Counselors were placed on staff in anticipation of those slots. All customers prepay ahead of time.
As for the former counselor, Ms. Shaw. She met all the requirements with her resume and all clearances required for the camp program. Ms. Shaw did not have transportation and so she would carpool and arrive at times when she was not scheduled to work. Regardless, she would "clock in" for times that were longer than her scheduled work hours. Ms. Shaw is not being paid for times when she arrived at the camp but was not working.
The customer contract is linked here.
All activities listed in your email were provided except yoga and horseback riding. Yoga was not in the camp literature or photos and was never offered. Horseback riding was going to be offered at the Richboro location, but that location never had a camp.
Field trips were not promised with the camp, but they were offered every Wednesday, weather permitting. The customers had an option to go on the trip. They could also stay back with a counselor if they chose not to attend the field trip.
Our client is subject to the bankruptcy court and does not know how long the bankruptcy process will last."