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The coronavirus known as COVID-19 is a global pandemic causing significant problems, especially in the United States and New York which is presently the most affected state by far. As a result, Governor Andrew M. Cuomo and the federal government has issued may orders, directives, and guidance regarding our conduct. The CDC has issued guidance cancelling allow large gatherings and events, including weddings. Many are predicting that the coronavirus will heavily impact the wedding business, everyone from vendors and venues to dress companies, musicians, and limo services. But one of the most important questions that every bride, groom, or parent of the couple is asking is how they can get the return of a wedding deposit due to the coronavirus. Our New York lawyer explains the steps you should take to address this issue.

Return of a Wedding Deposit Due to the Coronavirus

There are many steps to take in obtaining the return of a wedding deposit. This is an unprecedented situation and most guidance is older, common law (judge-made law) which may or may not still reflect public sentiments. This means that there is likely going to be a great deal of litigation over the coronavirus in the years to come which will map out the law. However, there are some tried-and-true legal methods you should take.

First Steps: Speak with the Vendor

The very first step you should always take is just asking your vendors and venue whether they will be issuing refunds. This sounds very basic, but far too many people immediately start the cogs of litigation before resorting to normal diplomacy. The wedding industry is a big business and vendors, venues, and other individuals or businesses associated with weddings will not want to tarnish their names and reputations. This is particularly true due to websites like WeddingWire or TheKnot which rate and review almost all vendors and venues. These reviews include many brides and grooms sharing their experiences. Even a few negative reviews and torpedo a venue or vendor for good.

If a vendor or venue refuses the return of a wedding deposit due to the coronavirus, it is very likely that they will incur the wrath of these reviewers—especially on social media. It may be the best business practice to offer other options, including new dates in 6-18 months or a partial refund now and other incentives for other celebrations later like a baby shower in a few years. These creative solutions can save businesses both negative reviews and money, while appeasing customers. This might be the easiest way to get the return of a wedding deposit due to the coronavirus.

Next Steps: What Does the Contract Say?

If the vendor is not receptive to a refund or overing you back only a partial refund without much incentive, you may need to start looking at the terms of your contract. What you agreed to in the contract is binding and important in explaining your rights and remedies. While some vendors and venues have prolific contracts, others may not.

Some contracts with vendors and venues may provide full refunds for cancellations within a certain amount of months before the event. Others may allow for cancellation within a certain amount of days or months after signing the contract. It is important to read and understand the terms of the contract.

“Force Majeure”: The Term Everyone is Talking About

A force majeure clause is a term in contract which relates to the inability to perform a contract due to an act of God. Under New York law, acts of God typically include uncontrollable phenomena such as hurricanes, tornadoes, snowstorms, and possible the coronavirus. It is a duel-edged sword which may allow both the vendor or the bride and groom to get out of the contract. The effect of a force majeure clause is to excuse one or both parties from performing under the contract.

If your wedding vendor or venue contract has a force majeure clause, you may be entitled to a full refund or to have the wedding date at another time as agreed between you and the other party for the same value.

However, if your contract has an exclusion for a force majeure of epidemics or expressly prohibits a force majeure event, you may have difficulty getting your wedding deposit back.

If your wedding contract is silent as to an epidemic but allows for other acts of God, you may still be able to invoke the force majeure clause. This is because under New York law contracts are construed against the drafter which is usually the vendor or venue. As such, this may allow for the force majeure clause to be construed in your favor to allow you to cancel the wedding due to the coronavirus.

What if Our Wedding Contract Does Not Have a Force Majeure Clause?

If the wedding contract does not have a force majeure clause than you cannot rely on it. However, you may be entitled to use the common law doctrine of impossibility. Like force majeure, the doctrine of impossibility allows a party to cancel a contract due to being unable to perform. If you have a large wedding venue and the CDC or other government prohibits a wedding from occurring, then you may be able to invoke this doctrine to get return of a wedding deposit due to the coronavirus.

However, it is important to note that impossibility is a tougher doctrine to use. Performance must truly be impossible. If the CDC or government allows for weddings of 10 people or less, than a venue or vendor may argue that impossibility does not apply because you can obviously have less people there.

What is “Frustration of Purpose”?

Although, in that instance you may be able to argue the doctrine of frustration of purpose also excuses performance and should warrant return of your wedding deposit. This is another contract excuse for performance where unforeseen events undermine a party’s purpose for entering the contract.

A simple example would be hiring a painter for your house, paying him a deposit, and a week later your house is struck by lightening and burned down. The painter obviously cannot paint your house anymore and the reason is due to an unforeseen result. In that scenario, you would likely get your deposit back from the painter.

In a wedding contract, if you have 250 guests and obtained a venue with a large seating capacity for those guests but are not limited to 10 people or less, you may have a frustration of purpose argument.

Getting a the Return of a Wedding Deposit May be Difficult: Ask our New York Lawyer for Help

This is a complicated process and there are many avenues to approach. The bottomline is that this is a rather unprecedented issue, especially because the government is attempting to bail out businesses from having to pay mortgages and individuals by giving out stimulus checks. This is why it is important to get a lawyer to help you with your possible claim.

Contact us!

Here at The Samuel Law Firm, our experienced New York contract lawyers can review your case to give you advice how to proceed. If we believe you are being aggrieved by an unreasonably vendor, venue, or other wedding industry business, we may represent you to protect your rights. We also offer consulting services for businesses who feel that customers are trying to take advantage of the national epidemic to renege on their contractual obligations. We handle cases throughout New York. Please call us at 646-663-4228 or send us an email at michael@thesamuellawfirm.com for a free consultation.