Goldstein v. Orensanz Events, LLC et al.

Facts: Plaintiff contracted with Defendant to hold her wedding at a venue owned by Defendant. Shortly before the scheduled event, the venue was closed due to a vacate order issued by the New York City Department of Buildings. Given this closure, Plaintiff was forced to find another venue on short notice and incurred additional costs as a result. Plaintiff sued Defendant for these additional costs. Defendant moved for summary judgment on the claims asserting that the force majeure clause in the contract prohibited the action, since the closure of the venue was a result of government action. The Supreme Court granted Defendant summary judgment, finding that the force majeure clause limited damages where the actions prohibiting the event were not taken by Defendant but by a government agency.

Holding: The Appellate Division. First Department modified the lower court finding that there was an issue of fact as to whether the closure of the venue occurred as a result of government action or as a result of inaction by Defendant.

Submitted: Davida S. Scher, Esq.

Precis: Davida S. Scher