What to do if I recently rented a venue to throw a party and the venue violated our contract?

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What to do if I recently rented a venue to throw a party and the venue violated our contract?

paid $20,000 for exclusive use of the bar but throughout the night the general manager was allowing countless people to come in who did not purchase tickets. This obviously meant more money for the venue but I was not compensated at all. The bar was overcrowded and my party and reputation suffered because of this. Is there any action I can take against the venue to recoup some/all of the $20,000 I spent to rent the venue? Is this amount of money too small to hire an attorney? Can I seek damages since they hurt my future earning potential? I’ve never been in this position before so I don’t know where to start.

Asked on February 11, 2013 under Business Law, New York

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You can sue the venue for breach of contract.   A material breach of the contract occurred since the bar was not reserved for your exclusive use. Your damages (monetary compensation you are seeking in your lawsuit) would be the contract price of $20,000.

I assume that the tickets you mentioned were to attend your event.  Damages are required to be specific, and it may be difficult to determine lost revenue from people being admitted without purchasing a ticket.  As for damages based on lost future earning potential, unless you can show the loss of specific customers, it would be difficult to ascertain damages.  Therefore, it would be advisable to sue for the contract price where the specific amount of damages can be ascertained.

The amount you are seeking to recover is not too small for an attorney. 


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