Cancellation of wedding due to rain: Supplier not liable to refund (201311211256) [2014] ZACGSO 5 (13 February 2014)

Cancellation of wedding due to rain: Supplier not liable to refund (201311211256) [2014] ZACGSO 5 (13 February 2014)

The Ombud found that the supplier's retention of the full amount paid as a cancellation fee was not unreasonable, given that the cancellation occurred on the day of the event and the supplier was unable to rent out the equipment to another customer. Industry practice, as confirmed by the Federated Hospitality Association of South Africa, supports retention of the full amount in such circumstances. The signed contract also provided for a cancellation fee. Therefore, there is no legal basis to compel the supplier to refund the applicant.

Citation
[2014] ZACGSO 5
Parties
Applicant: Complainant; Respondent: Star Sound Productions
Court
Consumer Goods and Services Ombud
Jurisdiction
South Africa
Judgment Date
13 February 2014
Case Number
201311211256
Procedural Posture
Consumer Complaint / Final Determination by Ombud
Outcome
Complaint dismissed. Supplier not liable to refund the applicant.
Judges
Bonita Hughes
Legal Topics
Consumer Protection Act, Cancellation Fee, Contractual Terms, Industry Practice
Commercial and Corporate Consumer Protection Act Cancellation Fee Contractual Terms Industry Practice

Case Brief

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Parties

Complainant

Applicant

Star Sound Productions

Respondent

Procedural Posture

Consumer Complaint / Final Determination by Ombud

Legal Issues

  1. 1 Whether the supplier is legally obliged to refund the applicant for unused garden décor due to cancellation caused by bad weather.
  2. 2 Whether the cancellation fee retained by the supplier is reasonable under section 17 of the Consumer Protection Act.

Ratio Decidendi

The Ombud found that the supplier's retention of the full amount paid as a cancellation fee was not unreasonable, given that the cancellation occurred on the day of the event and the supplier was unable to rent out the equipment to another customer. Industry practice, as confirmed by the Federated Hospitality Association of South Africa, supports retention of the full amount in such circumstances. The signed contract also provided for a cancellation fee. Therefore, there is no legal basis to compel the supplier to refund the applicant.

Court Disposition

Complaint dismissed. Supplier not liable to refund the applicant.

Orders

  • The supplier is not required to refund the applicant for the unused garden décor.
  • No further action is required from the supplier.