If you’re looking into or are even in the process of creating your own pickleball facility, you’ll have to negotiate a whole host of obstacles.
These range from getting your initial land purchase right to staying on the right side of the law regarding construction contracts.
Be On The Right Side Of The Law – From Start To Finish
The process from idea to realization involves various legal steps, and having knowledgeable professionals to assist you is essential.
Lowndes Law provided a framework for potential pickleball projects. This article uses their tips to highlight 10 key areas where legal experts play a crucial role in correctly realizing your pickleball concept.
1. Construction Contract Preparation
Developing a pickleball concept often involves construction or remodeling. An attorney helps minimize risks by drafting contracts that define project scope, timelines, payment terms, and dispute resolution mechanisms.
Construction contracts are complex documents that can be difficult to understand and interpret, and this can lead to disputes between the parties, which can be costly and time-consuming to resolve.
Some of the most common legal difficulties involved in construction contract preparation include ambiguity in the contract terms, unclear or incomplete contract scope, improper allocation of risk, unfair or unrealistic contract terms, and failure to comply with applicable laws and regulations.
2. Local Resident Analysis
We’ve read so many stories recently about the noise factor involved when it comes to pickleball courts. If you plan on including outdoor courts in your facility, you must take the proximity of nearby housing into consideration.
Ensuring local residents are fully aware and on board with the project will protect you against potential lawsuits. The answer may be expensive acoustic insulation and fencing, which will drive costs up even higher.
The potential legal difficulties involved with Local Resident Analysis (LRA) when looking to construct an outdoor pickleball court depend on the specific municipality or homeowners association (HOA).
However, some common issues that may arise include:
Setback requirements: The property may have setback requirements that specify how far a structure must be set back from the property line. A pickleball court may not be able to comply with these requirements if it is too large or if there are other structures on the property that would need to be moved.
HOA restrictions: If the property is located within an HOA, the HOA may have restrictions on the construction of outdoor amenities such as pickleball courts. These restrictions may be based on aesthetic considerations, noise levels, or other factors.
Neighborhood opposition: Even if there are no legal restrictions on the construction of a pickleball court, neighbors may oppose the project due to concerns about noise, traffic, or other impacts. This could lead to a lengthy and expensive legal battle.
To avoid these potential legal difficulties, it is important to carefully research the zoning and HOA regulations that apply to the property before starting any construction on a pickleball court. It is also advisable to communicate with neighbors early on in the planning process to address any potential concerns.
3. Compliance with Regulations
A recreational facility must adhere to numerous local, state, and federal regulations. Legal experts guide you through this complex landscape to ensure full compliance.
Some examples of this include:
Building codes: Building codes are regulations that set minimum standards for the construction of buildings. They may specify the size, materials, and location of a pickleball court.
Land use permits: A land use permit is required to construct a new building or structure in many jurisdictions. The permitting process can be lengthy and complex, and it may require the approval of multiple agencies.
Environmental regulations: Environmental regulations may restrict the construction of a pickleball court in areas that are sensitive to environmental impacts, such as wetlands or floodplains.
4. Zoning Restrictions
When property zoning doesn’t align with your pickleball concept, legal professionals collaborate with local authorities to align the property use with your vision.
The land where the pickleball court is proposed may be zoned for residential use only, which would prohibit the construction of a non-residential structure such as a pickleball court.
The designated area may have setback requirements that specify how far a structure must be set back from the property line. A pickleball court may not be able to comply with these requirements if it is too large or if there are other structures on the property that would need to be moved.
There may be height restrictions that limit the height of structures that can be built. This could be a problem if the pickleball court needs to be elevated to provide drainage or to meet other requirements.
The zone may have parking requirements that specify the number of parking spaces that must be provided for a new structure. Check that the earmarked land is big enough for the required number of parking spaces.
Noise restrictions may be in place that limit the amount of noise that can be generated from a new structure. This could be a problem if the pickleball court is located near a residential area and the noise from the game could disturb neighbors.
5. Land Acquisition or Lease Arrangements
Securing the right location is fundamental to any pickleball concept. Whether buying or leasing property, it involves critical evaluations. An experienced attorney ensures all legal considerations are met and safeguards your interests in land agreements.
You must also take the following into consideration:
Ownership of the land: The property where the pickleball court is proposed may be owned by a private individual, a corporation, or a government entity. The ownership of the land will determine who has the authority to approve the construction of a pickleball court.
Leasehold interests: If the property is leased, the lease agreement may contain restrictions on the use of the land. These restrictions could prohibit the construction of a pickleball court or could require the lessee to obtain the landlord’s consent before constructing a pickleball court.
Easements: An easement is a right that allows someone to use the land of another person for a specific purpose. For example, a utility company may have an easement to run power lines across a property. If the land where the pickleball court is proposed is subject to an easement, the easement may restrict the construction of the pickleball court or may require the consent of the easement holder.
6. Company Formation Documents
Establishing your legal entity, such as a corporation or LLC, requires well-drafted organizational documents. These documents outline company structure, governance, ownership, and operations.
The type of entity: The first step is to decide what type of entity to form. The most common types of entities for pickleball courts are limited liability companies (LLCs) and corporations. LLCs offer limited liability protection to the owners, while corporations offer more flexibility in terms of ownership and management.
The name of the entity: The name of the entity must be unique and cannot be the same as the name of another entity already in existence. It is also important to make sure that the name is available for registration in the state where the entity will be formed.
The articles of incorporation or organization: The articles of incorporation or organization are the governing documents of the entity. They must be filed with the state and contain information about the name, purpose, and structure of the entity.
The operating agreement: The operating agreement is a private document that sets forth the rules and procedures for operating the entity. It is not required by law, but it is advisable to have one in place to avoid disputes between the owners.
The capital structure: The capital structure of the entity determines how the ownership interests are divided. In an LLC, the owners are called members and their ownership interests are called membership interests. In a corporation, the owners are called shareholders and their ownership interests are called shares.
The management structure: The management structure of the entity determines how it will be run. In an LLC, the management structure can be either member-managed or manager-managed. In a corporation, the management structure is always manager-managed.
7. Intellectual Property Protection
Protecting your brand, instructional materials, and unique programs is vital. Attorneys assist in trademark registrations, copyright applications, and trade secret agreements.
They will deal with the following:
Trademarks: A trademark is a word, phrase, symbol, or design that is used to identify and distinguish the goods or services of one party from those of another. If you use a trademark that is owned by someone else, you could be liable for trademark infringement.
Copyrights: A copyright is a form of intellectual property protection that gives the owner the exclusive right to reproduce, distribute, perform, display, and create derivative works of a work of authorship. If you copy or use a copyrighted work without permission, you could be liable for copyright infringement.
Patents: A patent is a form of intellectual property protection that gives the owner the exclusive right to make, use, sell, or offer to sell an invention. If you make, use, sell, or offer to sell an invention that is patented by someone else, you could be liable for patent infringement.
Trade secrets: A trade secret is information that is not generally known and that has commercial value because it is kept secret. If you misappropriate a trade secret, you could be liable for trade secret misappropriation.
8. Investor Documentation
Legal documents like investor agreements and private placement memoranda (PPMs) must be legally sound if you seek external investment. They attract investors while ensuring compliance and protecting your interests.
Please the following points into consideration:
Incomplete or inaccurate information: Investors need to be provided with accurate and complete information about the pickleball court project in order to make an informed investment decision. If the information is incomplete or inaccurate, investors could lose money or suffer other losses.
Fraudulent misrepresentation: Investors could be misled by fraudulent misrepresentations about the pickleball court project. This could include false promises about the project’s profitability or the risks involved.
Negligence: Investors could sue the developers of the pickleball court project for negligence if they fail to exercise reasonable care in the preparation of the investor documentation. This could include failing to disclose material information or failing to investigate potential risks.
Breach of contract: Investors could sue the developers of the pickleball court project for breach of contract if they fail to fulfill their obligations under the investor documentation. This could include failing to provide the promised returns or failing to complete the project on time or on budget.
How to Build an Outdoor Pickleball Court: https://t.co/CB5IRBigt5
— Sports Imports (@SportsImportsVB) October 19, 2022
9. Due Diligence for Entitlements
Thorough due diligence helps prevent unforeseen legal and financial challenges. Investigating the site’s history, environmental factors, and zoning regulations reveals potential restrictions on your concept’s operation.
Zoning: The property where the pickleball court is proposed may be zoned for a different use, such as residential or commercial. If the property is not zoned for a pickleball court, the developer will need to obtain a zoning variance or a conditional use permit.
Building codes: The building codes that apply to the property may restrict the size, materials, and location of the pickleball court. The developer will need to ensure that the pickleball court complies with all applicable building codes.
Land use permits: A land use permit may be required to construct a pickleball court. The permitting process can be lengthy and complex, and it may require the approval of multiple agencies.
Environmental regulations: Environmental regulations may restrict the construction of a pickleball court in areas that are sensitive to environmental impacts, such as wetlands or floodplains. The developer will need to comply with all applicable environmental regulations.
HOA restrictions: If the property where the pickleball court is proposed is located within a homeowners association (HOA), the HOA may have restrictions on the construction of outdoor amenities such as pickleball courts. The developer will need to comply with all applicable HOA restrictions.
10. Liability Waivers and Risk Management
Pickleball can be physically demanding. Experienced legal teams draft comprehensive liability waivers and advise on risk management strategies to minimize legal liabilities related to injuries, incidents, or accidents at your facility.
Liability waivers: A liability waiver is a document that releases the party that owns or operates the pickleball court from liability for injuries that occur on the court. However, liability waivers are not always enforceable, and they may not protect the party that owns or operates the court from all liability.
Risk management: Risk management is the process of identifying and reducing the risks associated with a particular activity. In the context of pickleball, risk management could involve things like providing safety equipment, training employees, and inspecting the court regularly.
Other Considerations
In addition to the legal issues mentioned above, there are also a few practical considerations that should be taken into account when constructing a pickleball court. These include:
Site selection: The ideal location for a pickleball court is a level surface with good drainage. The court should also be located in a sunny area to avoid shadows that could interfere with gameplay.
Surface material: The surface of the court should be non-slip and durable. Concrete, asphalt, or sports court surfaces are all commonly used for pickleball courts.
Fencing: The court should be fenced in to prevent balls from going into neighboring properties.
Lighting: If the court is going to be used in the evening, it will need to be equipped with lighting.
Introducing a pickleball concept is an exciting endeavor, but it requires meticulous legal planning and execution.
