Consumer Law, Warranties Large Non refundable deposit

[Jzarr]

Hi,

This is the first time I'm writing to this forum and I'm looking for some advice. In March of this year my fiancé and i signed an "Agreement" saying that we would be placing reservations at a reception hall for our wedding. Before I signed the agreement I read a section which states that if we cancel before a specific day we would have to pay a cancellation fee. The chart states we would have to pay 20% of the contracted value if we canceled 120 days before the day of the event. Recently there have been some family emergencies that have forced us to cancel the wedding and just elope. We contacted the reception hall and they told us that our deposit was non-refundable.

Does the hotel have any legal standing to withhold our money from us? I understand that some money is lost which is why I don't have a problem paying 20% on the $1500. Some people say that most courts don't hold up such large deposits.

Is small claims court the way to go? Anyone have any advice or ideas? I'd hate to have to pay hundreds of dollars to pay to have a lawyer to look at the agreement. We wouldn't end up getting any money back.

 

[SarahUMD]

Hi,

I am writing with the same problem. I am trying to get a deposity back from a photographer who doesn't even state that the deposit was non-refundable. I am looking for advice, but I think I am going to small claims court. It seemed all you have to pay, for claims over 500 is $30, at least that is the fee in massachusetts. You don't need a lawyer either. Also, I would file a complaint with the Better Business Bureau as well. Keep me posted if you make progress.

 

[Michael Wechsler]

Yes -- it is possible to obtain part of your money back if the contract is seen to have a clause that is "punitive" in nature and designed to punish rather than compensate. However, I'm not sure of your chances. The total to hold the room is $300. What could you hope for at best... a reduction of $50? $100 at best? Additionally, I'm not so sure that the amount of the deposit is unreasonable and the date might add even more impact to that position, e.g. June wedding. Many weddings are planned well in advance so 120 days prior notice is not unsual and a 20% deposit doesn't seem out of line. Things might be different if we were talking about 50%.