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Ely, Counselor at Law
Category: Legal
Satisfied Customers: 102377
Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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Hi, I attended a yoga studio that closed overnight with no

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I attended a yoga studio that closed overnight with no notice. Hundreds of people had pre-paid classes for up to $900 a person and noone got their money back. What can we do? Studio had lost their lease but did not inform anyone.
Hello friend. My name is XXXXX XXXXX welcome to JustAnswer. Please note: (1) this is general information only, not legal advice, and, (2) there may be a slight delay between your follow ups and my replies.

I am very sorry for your situation. First of all, can you please tell me the name of the Yoga studio? I need to see if they are a corporation or not in the state of New York.

This is not an answer, but an Information Request. I need this information to answer your question. Please reply, so I can answer your question. Thank you in advance.
Customer: replied 4 years ago.

Bikram Yoga Union Square.XXXXX was the owner who un-yoga like took the money and ran.

Thank you.

It is not possible to see whether or not this company is a corporation or not. I will explain why below in a second.

Either way, you and others have a claim for breach of contract here - this is very textbook. Under New York law, an action for breach of contract requires proof of (1) a contract; (2) performance of the contract by one party; (3) breach by the other party; and (4) damages. Rexnord Holdings, Inc. v. Bidermann, 21 F.3d 522, 525 (2d Cir. 1994) (applying New York law).

If this was a corporation, then you can only sue the corporation and not the person behind it. If this was not a corporation, then you can sue the business and the person behind it.

At $900, this is a small claims court matter - see here. You may file a case going off the step by step on said website. Hopefully, the studio will pay you back upon you filing suit (or threatening to do so), or, if you get judgment, you may enforce it by attaching accounts of the business (and owner, if not incorporated).

I hope this helps and clarifies. Best of luck.

Gentle Reminder: Please use the REPLY button to keep chatting, or RATE my answer when we are finished. Kindly rate my answer as one of the top three faces and then submit, as this is how I get credit for my time with you. Rating my answer the bottom two faces does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith. (You may always ask follow ups at no charge after rating.)
Customer: replied 4 years ago.

Could you let me know why it is not possible to find out if it was a corporation or not?


Sure - allow me to explain. Every corporation doing business in NY is registered with the state and may be searched for here. No such name is XXXXX XXXXX This means that (1) either there is no such corporation, or, (2) the corporation is using a fictitious name (i.e. the "Target Corporation" does business under the fictitious name of "Target"). No variation of the name is XXXXX XXXXX and it includes both corporations and fictitious names, so I want to say it is not incorporated at all, but the database is not always 100% complete, and/or, he may have another company. So it is unclear at this point - my apologies.

Gentle Reminder: Please use the REPLY button to keep chatting, or RATE and submit your rating when we are finished.
Customer: replied 4 years ago.

I just asked an earlier employee who thinks it was an LLC. Not sure what category that falls in.


Thank you for your reply. An LLC is a corporation for all intents and purposes.

Now, even if it is a corporation, the corporation may be "pierced" if it is shown that the corporation was only used as a "shell" - see here. However, this has to be proven by you.

Gentle Reminder: Please use the REPLY button to keep chatting, or RATE and submit your rating when we are finished.
Customer: replied 4 years ago.

Wow, this will be some work. We'll see if I can manage. Here is a little on our guy:
Not in the business of being nice for sure!
Not a lot of money, but a lot of people, so I hope others will pitch in to help give this a push.


Namaste, and do not forget to breathe through your vinyasa!


You are very welcome. Good luck, and please don't forget to rate my answer in one of top three faces and then SUBMIT – it is the only way I get credit for my time with you – or, please REPLY to keep on chatting – I want you to be satisfied.
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