
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, May 18, 1993                   TAG: 9305180173
SECTION: VIRGINIA                    PAGE: C3   EDITION: NEW RIVER VALLEY 
SOURCE: Associated Press
DATELINE: VIRGINIA BEACH                                LENGTH: Medium

`PEEPHOLE' KARATE SCHOOL SEEKS MONEY

A martial arts school is trying to collect money from students who left with unpaid contracts after peepholes were found in the school's tanning room.

"Any place of business that conducts itself in this kind of immorality ought to be shut down," said Melody Bish, a karate student who took photographs of the peepholes. Bish quit the school last October and is trying to get out of a two-year contract to pay $59 a month.

Bish did not sue the school, but other students did and won a ruling that the peepholes gave them sufficient cause to break their contracts with the National Institute of Martial Arts.

Tom A. Palatini, owner of the business, said he didn't drill or use the peepholes. He said he suspects a former student drilled them.

"There's absolutely no question they should never have been there," said Palatini's attorney, Barry Jenkins. "Mr. Palatini was trying to block them out."

Palatini said he tried to cover the holes with wooden blocks, but someone removed the blocks. "There was no secret of the peepholes to anybody," he said. "Everyone knew about it. It was common knowledge."

General District Judge Robert L. Simpson ruled in January that Palatini should have "exercised better discretion" in correcting the problem. The case was brought by the parents of five children who sued to revoke their contracts. Simpson allowed the terminations but did not order refunds.

Pam Harrison, who had a daughter and son, ages 10 and 13, at the school, said once she saw the pictures of the peepholes "my decision was to immediately remove my children."

Bish was not part of the suit. The school took her to court for the remainder of her contract and won when she failed to appear. She said she was not notified and that Palatini is retaliating against her for finding the peepholes.

Palatini said he plans to pursue unpaid contracts. He said some former instructors have been instigating complaints so they could draw away his students.

According to court records, the school has sued about 25 students this year to collect money owed.

Bish, a preschool teacher, has given up karate. "I've lost my zeal for it," she said. "I'd rather go for a walk on the beach."

by CNB