First Cancelation because of Corona Virus

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It’s actually funny because many people are bringing that up and a number of lawyers are sayin that it doesn’t really apply or won’t be practical. There was a webinar 2 nights ago w a lawyer from one of the worlds largest law firms who quickly dissected that. The key argument would be that this is only a temporary inconvenience and that the event can easily postpone, therefore not creating an absolute impossibility. Plus, if they wanted to make that argument, they’d need a hearing as the defendant would need to defend themselves, and the actual cost of doing that would far exceed the potential return for the client. It would only be practical in cases with large sums of money.... $20000+
It can't easily postpone if the venue, the time availability or the guest availability doesn't realign.
 
Exactly correct. Like many of you, I've had plenty of cancellations where they wanted their money back. While it's entirely possible that the client MIGHT win their deposit back, I've never had a single one actually take me to court. Stick to your contract as written.
Again, cancellations in their control are different.
 
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How will you know until you get in front of a judge? The chances of a client taking it that far to find out are slim to none.
It's going to be an issue that will play out a lot this year due to many industries facing the question .. "Does the coronavirus pandemic and the implications of the resulting lockdowns meet the definition of Force Majeure or Act of God?".

Don't know, but I'm guessing Ron is doing right by his clients rather than holding on to a contract claim.
 
It's going to be an issue that will play out a lot this year due to many industries facing the question .. "Does the coronavirus pandemic and the implications of the resulting lockdowns meet the definition of Force Majeure or Act of God?".

Don't know, but I'm guessing Ron is doing right by his clients rather than holding on to a contract claim.

It's kind of uncharted territory because they can't attend and you can't perform...I think if they ask for it back it might be best to give it for the sake of a couple hundred bucks
 
It's kind of uncharted territory because they can't attend and you can't perform...I think if they ask for it back it might be best to give it for the sake of a couple hundred bucks

In my case a deposit is often $1400. It's kind of a big deal to just start handing back money that I've already spent. Fortunately, our April/May schedule is/was light. I had one A/V job (Friday morning, sound for a conference) which had just booked, then cancelled, so I gave them a full refund (so they'll keep booking with me in subsequent years). One prom on 4/10, which has re-scheduled to May. One DJ-only gig ($775) at the end of April, which is still on (for now). I'm feeling pretty fortunate that our bookings are down this year. It would've been an awful mess trying to sort thru a full calendar. I'm also hoping that I end up picking up some venue gigs later in the year, from other venues who couldn't re-schedule. Kinda selfish, I know, but if I can play the hero to a few brides and put some dates on the books, I consider that a win-win.
 
Attorneys I have researched have indicated that in some circumstances a pandemic can indeed fall under "Act of God" but not always. It seems case specific, which may include location, etc.

If it falls under "Act of God" you most certainly would end up responsible for refunding money already paid.

While most of our events are not going to be rescheduled, they are repeat customers and we'll pick up again next year. We won't need to refund any payments as I htink everyone has future events with us already that any payment can be applied to. Keeping customers happy and ensuring they are repeat customers is worth more than the down payment we might have on file.
 
Attorneys I have researched have indicated that in some circumstances a pandemic can indeed fall under "Act of God" but not always. It seems case specific, which may include location, etc.

If it falls under "Act of God" you most certainly would end up responsible for refunding money already paid.

While most of our events are not going to be rescheduled, they are repeat customers and we'll pick up again next year. We won't need to refund any payments as I htink everyone has future events with us already that any payment can be applied to. Keeping customers happy and ensuring they are repeat customers is worth more than the down payment we might have on file.
Again that’s only if your contract had that provision FOR THE CLIENT TO CANCEL. My contract says if the client cancels for any reason without postponing their event within a year, the retainer is forfeited and from there depending on when they cancel relative to the date of the event, there may be additional money that can be collected. Most contracts protect the DJ from not performing based on an act of god... which by the way a pandemic has never happened for there to be case law on if it would count as an act of god. But again, ultimately the judge can say, you can postpone. It can be a Monday, it can be 6 months from now... the option exists, so the claim that it’s impossible isn’t valid.
 
Again that’s only if your contract had that provision FOR THE CLIENT TO CANCEL. My contract says if the client cancels for any reason without postponing their event within a year, the retainer is forfeited and from there depending on when they cancel relative to the date of the event, there may be additional money that can be collected. Most contracts protect the DJ from not performing based on an act of god... which by the way a pandemic has never happened for there to be case law on if it would count as an act of god. But again, ultimately the judge can say, you can postpone. It can be a Monday, it can be 6 months from now... the option exists, so the claim that it’s impossible isn’t valid.
Weddings, and other large events may not be able to postpone with the same outcome (same people, etc.), so I still think that if YOU can't perform (for the same reasons the client would cancel), then you'd be on shaky ground going to court.
 
You guys keep arguing what would happen IF you got taken to court. In my opinion, the risk of someone actually taking you to court over a deposit is very small (less than 5%). Like Taso said earlier, it's just not worth it for a client to risk legal fees to try and recoup such a small sum, assuming they win. If you weigh the risks vs. benefit from a purely business perspective, there's no way you can say it's wise to give the deposit back.
 
You guys keep arguing what would happen IF you got taken to court. In my opinion, the risk of someone actually taking you to court over a deposit is very small (less than 5%). Like Taso said earlier, it's just not worth it for a client to risk legal fees to try and recoup such a small sum, assuming they win. If you weigh the risks vs. benefit from a purely business perspective, there's no way you can say it's wise to give the deposit back.
When people start counting their pennies (since many will face a household reduction this year), you become a prime target for a social media backlash .. especially when they have more time on their hands.

I guess it all comes down to what you believe is the right thing to do.
 
When people start counting their pennies (since many will face a household reduction this year), you become a prime target for a social media backlash .. especially when they have more time on their hands.

I guess it all comes down to what you believe is the right thing to do.

Okay, now you're talking an actual business risk.....the bad review or word of mouth. I think this is where it gets more into the territory of subtle negotiation. While it's true, clients can and will threaten to bad mouth you if you don't give in to their demands, that risk is minimalized, provided you express sympathy and a willingness to re-schedule within the confines of what you both agreed to in the contract.
 
When people start counting their pennies (since many will face a household reduction this year), you become a prime target for a social media backlash .. especially when they have more time on their hands.

I guess it all comes down to what you believe is the right thing to do.

If this isnt the time to show some sort of sympathy for the people we claim to desire to bring joy to...then when is?

This isnt some fickle bride dicking us over because she got a better deal.... this is a bride who's world has been turned upside down... months if not years of planning ruined in an instant... you were their choice... they cry themselves to sleep over the uncertainty of their plans and the world around them....

I couldnt sleep at night adding to their misery...

Give it back.... trust me...the universe will pay it back to you 3 fold down the road

cc
 
When people start counting their pennies (since many will face a household reduction this year), you become a prime target for a social media backlash .. especially when they have more time on their hands.

I guess it all comes down to what you believe is the right thing to do.
The right thing to do is a completely different convo and many are taking this on a case by case basis of refunds or not. In regards to the contract, most contracts include reasons to protect the dj if HE can't perform. In most contracts there are is nothing to protect the client from various reasons. Most clients overlook this and do not add any addendum to protect themselves in cases such as death or whatever. The contract with a dj never has anything to do with how many people show up, or outcome... just that they will perform on a certain date or time. So again, the dj is protected from being sued for a service he didn't complete, but the client isn't protected from cancelling an event and collecting any money back. PS this isn't my opinion, this was the information (not legal advice of course) from a lawyer of one of the worlds largest law firms who specialize in contracts for the event industry as a whole (but primarily six figure contracts with corporations and multimillion dollar event industry companies).
 
If this isnt the time to show some sort of sympathy for the people we claim to desire to bring joy to...then when is?

This isnt some fickle bride dicking us over because she got a better deal.... this is a bride who's world has been turned upside down... months if not years of planning ruined in an instant... you were their choice... they cry themselves to sleep over the uncertainty of their plans and the world around them....

I couldnt sleep at night adding to their misery...

Give it back.... trust me...the universe will pay it back to you 3 fold down the road

cc
I think if a couple is devastated, going a different route completely, has come across major financial hardhsip as a result and is likely not to recover, etc... then yes perhaps a refund is in your interest. If their simply moving on to a new date but chose a date that you're not available for... then I think you have the right to keep the retainer. This also will completely invalidate the argument of impossibility because it shows they're clearly open to postponing.
 
The right thing to do is a completely different convo and many are taking this on a case by case basis of refunds or not. In regards to the contract, most contracts include reasons to protect the dj if HE can't perform. In most contracts there are is nothing to protect the client from various reasons. Most clients overlook this and do not add any addendum to protect themselves in cases such as death or whatever. The contract with a dj never has anything to do with how many people show up, or outcome... just that they will perform on a certain date or time. So again, the dj is protected from being sued for a service he didn't complete, but the client isn't protected from cancelling an event and collecting any money back. PS this isn't my opinion, this was the information (not legal advice of course) from a lawyer of one of the worlds largest law firms who specialize in contracts for the event industry as a whole (but primarily six figure contracts with corporations and multimillion dollar event industry companies).
I also think it's going to be the LEGAL thing to do in many/most instances since WE can't perform on the agreed upon date along with the client.

There may be some leeway if your contract specifically addresses situations where BOTH parties are affected and the language stipulates that a postponement is the recourse. I would take the bet that most small claims courts will rule in favor of the client on this one.
 
I think if a couple is devastated, going a different route completely, has come across major financial hardhsip as a result and is likely not to recover, etc... then yes perhaps a refund is in your interest. If their simply moving on to a new date but chose a date that you're not available for... then I think you have the right to keep the retainer. This also will completely invalidate the argument of impossibility because it shows they're clearly open to postponing.

yes but...imagine their added devestation that the illustrious dj Taso will no longer grace their event... lol

You know better than i do the amount of money you have made on referral and repeat business... and i know that your retainer isnt that much money... Wouldnt the best business choice be to insure that you were the dj with a heart...who wasnt full of sh*t when you initially promised them the world when they first booked... that you ACTUALLY are a morale human first / businessman 2nd....

And even though for this event they will have some other dj.... you remain their dj of choice for countless future events... because of one small gesture...

cc
 
The question we havent really asked is...

Are we as dj's prepared to show up at a 300 person event amidst this outbreak....in a couple weeks or more when the numbers are through the roof?

We may need to count our blessings that brides are canceling first before we do... otherwise we might owe THEM the full amount for our absense.

cc
 
Spend a few minutes on any Bridal Facebook group if you need a reason to feel sympathy for these brides...

It honestly breaks my heart. They dont even know what to do....they all seem dumbfounded and lost....

cc