Legal Question in Business Law in California

It depends. With 7 months it would be hard for them to show why they are entitled to keep it, but it is not impossible given the facts and circumstances. If they refuse to give it back, you can always bring them to the small claims court and no lawyer will be required. You should also consider Judge Judy being you are already in CA, this would be binding arbitration, but I know she would require them to show a compelling reason why they are entitled to keep it.

Good luck!

Kind regards,

Frank

www.LanternLegal.com

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DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.

As I believe I explained in response to a previous version of this question, the dance hall will be allowed to retain the deposit if it can establish to the satisfaction of the court that the $800 is a reasonable advance estimation of its probable damages, and not a penalty. Whether it can so establish the $800 as a reasonable pre-estimate of damages will depend upon its pricing structure, demand for space, how long in advance it sells out, and other factors. One cannot weigh all the factors without developing a whole lot of additional facts, going well beyond what you've told us, and probably beyond what you'd even know about. So, all in all, filing suit to recover the $800 is a gamble. maybe you win, maybe the dance hall wins.