Hello, My MA LLC yoga studio has a student who is threatening to sue us for flight change fees plus attorney fees because we had to cancel a training.
These airline fees were not related to a late cancel, but were terms at the time of purchase.
We promptly credited (in full) the course fee.
This training was canceled due to low enrollment which is common. I have never heard of yoga studio reimbursing for travel.
I have called this person and emailed but my call was not returned so I'm not sure what more I can do. I would love some legal advice.
Your student is attempting to recover consequential damages resulting from the alleged contractual loss. Recovering consequential damages is far from a guarantee and typically such damages are specifically negotiated for at the time the contract was formed. In general, for consequential damages to be awarded, the damages must be a result of a breach and be reasonably foreseeable to BOTH parties at the time in which the contract was formed. Furthermore, there was arguably no contractual loss/direct breach since you reimbursed the course fees.
Consult with a local business attorney who has experience representing parties in breach of contract matters.
The above content is presented solely for information purposes and not as legal advice. Consult a licensed attorney in your state for specific questions.
Mr. Lapin offers sound advice. However, it may be that the student will not do anything and that the whole affair will blow over. You could consult with your business attorney just to get some comfort and consider this as a good time to have your agreements with students reviewed to correct any ambiguities.
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I agree with the prior responses. The question is "what does your contract say"? If you do not have a contract, you should have one prepared by an attorney and address damages and all other related risk management issues.
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