The most exciting day of your life is soon approaching. You have secured your venue, contracted with your caterer, D.J, photographer, florist, decorator, and bakery. Your beautiful invitations have been printed and mailed to your guests. Since all the details have been arranged, you decide that it’s time for you to relax and look forward to your wedding. Then, a few days before your big day you receive an unexpected phone call from your event coordinator who shares some shocking news with you: your event venue is no longer in existence because the location was foreclosed upon and the business evicted! Unfortunately, this is a far too common occurrence that many couples are facing in a depressed economy where foreclosures are on the rise. One can no longer be certain that the business they have contracted with will still be in existence on the day of their wedding, but there are some important precautions you can take when contracting for a location for your event.
When looking for a venue there are some important questions you should ask the representative to reduce the likelihood that you will be deprived of an event location on the day of your wedding. In your initial meeting with the venue’s event coordinator it is acceptable to ask if the business is in good credit standing. You should also ask if the property is in foreclosure. If you are informed that the property is in foreclosure then you should move on with your search because the likelihood of the business being in existence on the day of your event is risky. If the coordinator refuses to answer your questions then you should be leery and contact a venue that will be open to providing you with honest answers.
In addition to asking these important questions, you can go online or to the county recorder’s office and check the public records to see if payments are delinquent and the property is in foreclosure. You may also check the property tax records and, if you find that the owner owes back taxes, then they probably are delinquent in their mortgage payments as well.
If you do end up being a victim of a venue that is foreclosed before your event then you may be able to pursue the owner of the venue for breach of contract. Before you pursue such a claim you should mitigate your damages and secure an alternative venue for your celebration. Your damages would include any additional expenses that you would incur as a result of securing an alternate venue, such as the costs of printing new invitations or making last minute travel plans. You may also have to pay your vendors additional sums if they have to make additional arrangements to perform their services at a different venue. Any additional monies that you may have to pay to your vendors can be included in your damages claim against the venue.
On the other hand, if you chose to enter into a contract after being informed by an event venue that they were in foreclosure, then your legal remedies may be limited because you chose to enter into a contract with full knowledge that the property was in foreclosure and accepted the risk that the property could be foreclosed on the day of your event. Regardless of the assurances that may be provided to you, the better option is to not contract with a venue that is in foreclosure and to find a location that is in good standing.
If the event venue is not in foreclosure it is still essential for you to review your contract carefully and to make sure it specifies what happens with the deposits you have paid in the event the business is closed for any reason.
Alternatively if you own or work for a venue that you know is in foreclosure then it is strongly recommended that you consult with an attorney and make an informed decision on whether you should be advertising your business and entering into contracts that you may not be able to honor. In the end you will end up in litigation and be responsible for paying damages to the individuals who were not able to have their event at your location.
Planning a wedding can be stressful and a lot of work. The last thing you want is to add to your stress by finding out that your event location is no longer in business. Remember that one of the most important parts of your wedding is the location, so do some detective work and ask the right questions so you are not locked out of your own wedding. By taking these additional steps you can reduce the likelihood that your special day will be ruined or worse, canceled.
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Note: The information provided in this article is for informational purposes only and should not be construed as legal advice. For legal advice please consult with an attorney in your jurisdiction. This information is not intended to create an attorney-client relationship.
Author: Puneet Singh is an attorney and Partner with an event planning company called Ajooba LLC located in California. For additional information please visit their website at www.ajoobaevents.com, e-mail them at creations@ajoobaevents.com or call 209-606-9430.
