Consumer Law, Warranties Contract Dispute

[somethingal]

I hired a PR company to organize an event for me and signed a contract with them. They threw an event and I was unhappy with the results and do not believe they gave me the outcome I wanted out of the event. We agreed that the event would be free and all I would have to do is ensure the bar made $1000. At the end of the night I was told that the bar made around $1200 and I would have to pay 20% or $200 of that as a tip. I refused to. This was not agreed upon beforehand I was told to tip and I tipped $60 even though people who bought drinks tipped the bartenders throughout the night. later they billed me and said that I had to pay their expenses which totaled $210 (which included $150 the remainder of the tip they claimed to have paid, which I refused to pay).

The contract states

"Expenses. During the term of this Agreement, {company deleted} shall bill and Client shall reimburse {company deleted} for all reasonable out-of-pocket expenses which are incurred in connection with the performance of the Services hereunder. {company deleted} shall provide an invoice for such expenses at the end of each calendar month. Client agrees to pay such invoice within seven (7) calendar days of receipt. {company deleted} reserves the right to arrange for any expenses that are anticipated to be over $100.00 (one hundred dollars) to be billed directly to Client, unless the Parties agree to other arrangements. {company deleted} will seek Client's approval for any such expenses before incurring such expenses."

Am I liable?

 

[dee_dub]

If I understand you correctly, they're claiming that they incurred.a $210 expense in tipping their own staff and trying to pass that on to you?

That's preposterous. This isn't an "expense". Even if it was, they needed your approval because it's over $100.

 

[somethingal]

Thank you!! Thank you so much!! They are claiming that since it was my party I should have tipped the bar $200 which was 20% of what the bar made. They are saying it is not an expense I need to approve because they didn't bill me directly. They are saying it is in the reasonable expense category and therefore I am liable to pay this. I can't be liable for this..can I?

 

[dee_dub]

What does your agreement say about who pays the bar staff and who is responsible for tipping them?

 

[somethingal]

The agreement doesn't say anything about that. All I have to go on is what I previously quoted from the contract. Their Attorney states that the tip was "a reasonable expense" therefore I have to pay it. I disagree. Am I correct? Even though this isn't a large sum it is the principle. Am I liable?

 

[dee_dub]

My two cents: it's not a reasonable expense. A tip is a gratuity. Tips are paid by the people being served, not by the employer. If you want to tip the wait staff out of the goodness of your own heart, good on you. If they want to tip the wait staff out of the goodness of their own hearts, good on them. But it's not a reasonable expense, and it shouldn't be passed on to you.