Deposit for venue hire not returned

Commandante

Hello,

I Chair a non-profit organisation which put down a £250 deposit to hire a bar for an event last November, and again in February. We were due to hold another in June, but found a better venue which didn't require deposit or minimum spend etc so cancelled our booking in March.

Despite us repeatedly contacting the venue to request our deposit back they have done nothing. Last week I wrote them a formal letter demanding it was returned and threatened legal action if it was not dealt with in ten working days. No response yet.

I was wondering what our next step would be? Given that we're a small non-profit organisation I don't want to be spending lots of money on lawyers, but I need to have some authority behind our request. Would this be one for the financial ombudsman or something of that sort?

keyser666

What was the conditions of booking and deposit?

vaio

Generally a deposit is to protect the venue against the losses caused by punters cancelling.

What does your contract say about cancellation & deposit?

wealdroam

Commandante, you might find it useful to read this post...

Is a deposit ever refundable?

mattyprice4004

Isn't the point of a deposit to stop people doing what you're doing?

Commandante

Well surely a deposit is to ensure (a) cover for damage and (b) to prevent us pulling out with so little notice they're unable to re-hire it to someone else?

Surely thats not the case given that we gave them 2-3 month+ notice?

The deposit was for the event in November. There was no 'contract', just emails which said we'd get the deposit back as long as the event went ahead, which it did.

However, they didn't return it when we asked several times, and we decided we'd do another event there anyway, so it kind of rolled over to the next event which also went ahead in January. Whilst we were in the process of booking that one, we also asked for an event in June.

I don't think its unreasonable to then say we don't need the venue, giving 2-3 months notice, and to ask for the deposit back, particularly as the two events the deposit was for went ahead as agreed.

wealdroam

Commandante wrote: »

Well surely a deposit is to ensure (a) cover for damage and (b) to prevent us pulling out with so little notice they're unable to re-hire it to someone else?

Surely thats not the case given that we gave them 2-3 month+ notice?

The deposit was for the event in November. There was no 'contract', just emails which said we'd get the deposit back as long as the event went ahead, which it did.

However, they didn't return it when we asked several times, and we decided we'd do another event there anyway, so it kind of rolled over to the next event which also went ahead in January. Whilst we were in the process of booking that one, we also asked for an event in June.

I don't think its unreasonable to then say we don't need the venue, giving 2-3 months notice, and to ask for the deposit back, particularly as the two events the deposit was for went ahead as agreed.

Do you know how many bookings they have turned down for that date in June?

Whether or not there is a written agreement, there most definitely is a contract.
You having paid a deposit is confirmation of that.

bris

If they rebook the venue on the date in question for the same amount they you are entitled to it back, this is them mitigating their loss, if not your not entitled to it back.

No point in threating legal action as you are in the wrong, all you can do in court is ask the judge if they took proper action to mitigate their loss.

MamaMoo_2

bris wrote: »

If they rebook the venue on the date in question for the same amount they you are entitled to it back, this is them mitigating their loss, if not your not entitled to it back.

No point in threating legal action as you are in the wrong, all you can do in court is ask the judge if they took proper action to mitigate their loss.

Not at all. Providing the venue has suffered no actual loss (loss of profits not included) then OP is entitled to a full refund.

If there have been any expenses incurred (eg food specifically bought for an event etc.) then the venue may be able to retain some or all of the deposit to cover these costs. However, the venue would have to mitigate their losses, so they could try selling the food to someone else (eg another booking) or something similar.

Although two months in advance the venue are unlikely to have paid much out.

Also, if the venue did retain some deposit (eg to cover food costs) then OP would be entitled to said food otherwise the venue is benefitting unfairly (eg they have food and money)
However if they sold the food at a discount they could claim the difference in cost between the price they bought it for and the price they sold it at. OP wouldn't be entitled to the food in this case.

Hintza

MamaMoo wrote: »

Not at all. Providing the venue has suffered no actual loss (loss of profits not included) then OP is entitled to a full refund.

This is often quoted on here, I always live in hope some one can either point me to statute or case law to back this statement up.

Techhead_2

MamaMoo wrote: »

Not at all. Providing the venue has suffered no actual loss (loss of profits not included) then OP is entitled to a full refund.

If there have been any expenses incurred (eg food specifically bought for an event etc.) then the venue may be able to retain some or all of the deposit to cover these costs. However, the venue would have to mitigate their losses, so they could try selling the food to someone else (eg another booking) or something similar.

Although two months in advance the venue are unlikely to have paid much out.

Also, if the venue did retain some deposit (eg to cover food costs) then OP would be entitled to said food otherwise the venue is benefitting unfairly (eg they have food and money)
However if they sold the food at a discount they could claim the difference in cost between the price they bought it for and the price they sold it at. OP wouldn't be entitled to the food in this case.

There are a lot of assumptions in that.

We don't know whether the venue can find someone else for that date , whether the venue will be able to change any arrangements with suppliers, staff. The nature of the event etc.

To the OP. The venue should refund you your deposit less any costs they can't recover. You need to realise that you might not get all of your deposit back.