£1747.50 Broken down as follows:-
Summer wedding Package £9795.00
50% Cancellation fee £4897.5
Payment Received £3150.00
Amount Due £1747.5
Thankyou. For future reference, it would be worthwhile you being aware that whenlegal questions are being posed the parties are generally referred to by aletter which relates to what they are and in this case those letters would be B,G and M.
Itmakes it much easier to follow, bride, groom and mother. Indeed, in thisparticular case, there is no need not to use the actual words.
It isnot a bad with a small question when there are lots of parties and it getsalong, just having arbitrary letters can be confusing.
Inthis particular case, I agree that there is no privity of contract between A andthe venue and that is the defence. I cannot see that B has anything to do withit either.
Howevereven if C is joined in with the proceedings, I think C can claim against A andB because I think there is a verbal contract that A&B were going to getmarried, and subject to them getting married C would pay the bill.
It isdebatable however whether the venue is entitled to 50% of the cost because thatis an arbitrary figure and the venue is only actually entitled to recovercompensation/damages in respect of its genuine measure of loss. That isbasically the profit that it would have made on the event and I think itunlikely that would be 50%.
Mysuggestion therefore would be to offer something and to divide that costbetween the three.
If the three parties agree to that, then if nothinghad already been paid, In cases like this, I never suggest making anoffer. I suggest sending a cheque. Armed with a cheque in the hand for some ofthe amount they want, compared to an argument over the whole of the amount,(and arguments that they may win or lose) the cheque in the hand is a prettypowerful incentive to accept it.
Soconsider deciding how much you would like to pay the (you need to make itattractive enough) and send it with a covering letter headed "without prejudicesave as to costs". That means that they cannot produce the letter in court asany proof that you admit owing them any money at all.
Tellthem in the letter that you are offering this money in full and finalsettlement of all claims against you, past, present and future, and that bycashing it they accept it as such. Tell them that if they do not accept it,they should return the cheque to you and if they issue legal proceedings, youwill defend them on the basis of A, B, C, whatever.
Tellthem that if they do not understand the significance of the letter. They shouldtake independent legal advice.
Ican tell you this approach works nine times out of 10, provided the offer isreasonable and not derisory.
For legal reasons which I will not bore you with but whichgo back several hundred years, the cheque must not come from you, but was comefrom a third party, friend, relative, solicitor, our accountant, neighbour,girlfriend, wife, husband, whoever, just not from you all.
Here is some rather heavy reading http://www.voltimum.co.uk/news/2312/cm/the-law----full-and-final-settlement-.html
RememberI have not had to provide all the facilities so have not had all those costs.
So itthen comes down to how much. I think they are probably working on about 10-20%net profit and therefore, they are entitled to between 1000 and £2000. Howeverthey have already had £3150 so I think I would probably be counter claiming 1150quid from them on the basis that they have already had more than in the depositthan they have lost by the cancellation.
Dependingon how close the actual event was before calculation, will affect the amount ofdamages because obviously, if it was cancelled months before, they may reletthe venue but it was cancelled days before, they would not
Doesthat answer the question? Can I help further? Can I answer any specific points?
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OK but just to make it clear we are the venue and we have issued proceedings against the bride. She has put up the defense of 'no contract'. We are trying to recover the remainder of the 50% which you seem to think we would be hard put to justify in court. Would you suggest that we drop the action in order to avoid finding ourselves liable to pay back rather than receive more money?
Just to reassure you I will give you a positive rating!!
I have no interest in giving an answer on way or the other.
If they had paid nothing, then you would have a claim for loss of profit, not 50%.
50% is an arbitrary figure and not a genuine estimate of loss unless you work on 50% net profit.
If the judge thought it was a penalty not measure of loss, the judge would not enforce it.
It really depends on what the defendants put forward because the judge shouldn’t be telling them how to plead.
You would have to prove that your net profit if the whole thing had gone ahead, was 50%.
If the defendants counterclaim I think they would possibly get some money back.
Of course they might not counterclaim.
I do think that if proceedings are issued they should be against the mother.
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