Legal Question in Business Law in Michigan

Foiled Event at Hotel, They say we owe, but we didnt cancel. Refunded our depos

My LLC was supposed to hold an event at a local hotel. The contract specifically states the event must be canceled in writing if canceled by either party, & required a $1k deposit, which I paid. We sold some tickets, but not enough & we didnt reach our contracted goal. The week of, the hotel had yet to return calls regarding catering & other details. I called the hotel rep & told her we had not met the min. but would still like to go on with the event if we could re-plan the event. She said she'd call back but never did. We all arrived for the event, & found that all room res. had been canceled w/o notice. They found us rooms at a higher price, but we didn�t have a meeting room as planned. A while later I got a letter of debt to them according to the damages outlined in the contract. A week after that, while preparing to contact them with my argument, I got a check for $1k, as a refund of our deposit. This baffles me completely. If they sue & win, my LLC company will have to file for bankruptcy.

1. Should I cash/deposit the check? Something tells me not to.

2. What should my next step be? Im going to write them, but should I hire a lawyer & prepare for a court battle?

Thank you.


Asked on 3/29/04, 5:04 pm

1 Answer from Attorneys
Janet Ziulkowski Ziulkowski & Associates, P.L.C.

Re: Foiled Event at Hotel, They say we owe, but we didnt cancel. Refunded our d

Whether the hotel can sue the LLC for breach of contract depends on what the agreement says. You should certainly contact an attorney to review the agreement and advise the LLC as to whether the check can or should be cashed.

I offer free initial consultations. If you would like to discuss this in further detail, call me. Good luck.

Janet M. Ziulkowski

586-979-7302

www.ziulkowskilaw.com

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Answered on 3/29/04, 5:35 pm


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