"Specifically, the lawsuit will be based on violations of Title II of the Civil Rights Act of 1964, which relates to the denial of access and use and advantages of a public accommodation," attorney Carolyn Wright

said on CNN.

Wright said Creative Steps, which cares for many minority children, also will seek "punitive damages to punish the club for the harm that they've done to the children."

The dispute started after the Valley Swim Club in Huntingdon Valley, Pa., revoked swimming privileges of about 65 children from the center after a visit June 29. The center had contracted to use the pool during the summer, but the club canceled the agreement and returned the center's $1,950 check without explanation.

Some black and Hispanic children said white club members made racist comments during the June 29 visit.

"The humiliation, embarrassment and the scarring and suffering of the children -- that would be covered by our claim for compensatory damages," Wright told CNN.

The club also canceled contracts with two other day-care centers because of safety and crowding, Valley Swim Club Director John Duesler said. The other centers have not protested the club's decision.

The swim club has been subpoenaed by Pennsylvania's Human Relations Commission, which initiated a fact-finding investigation, said Bernice Duesler, wife of the club's director.

She told CNN Tuesday the club "could not handle a lawsuit" because it doesn't have the money and it is a small club staffed by volunteers.