Postponement of the 2020 Kentucky Derby from May to September provoked interest from me and numerous other ticket holders pertaining to what our legal rights are with respect to refunds. The answer depends on who you do business with.
Customers for Kentucky Derby tickets either buy directly from Churchill Downs or through ticket brokers that run secondary markets. When the coronavirus began to affect businesses and events of all varieties, ticket holders at some events, such as a music festival in Austin, Texas, found to their dismay that they were not going to receive refunds under the provisions they agreed to called force majeure.
Investopedia states that “Force majeure refers to a clause that is included in contracts to remove liability for natural and unavoidable catastrophes that interrupt the expected course of events and restrict participants from fulfilling obligations.”
Churchill Downs has a very specific force majeure policy that gives the company wide latitude and basically precludes ticket refunds for unforeseeable developments like the coronavirus. It reads in part:
“The date and time of any racing event is subject to change based on, among other things, force majeure events. No refunds or exchanges will be permitted based on such scheduling changes.
Due to various weather situations, a race may be cancelled or postponed for the safety of the guests, jockeys, and horses. All situations are unique, including force majeure, in that the cancellation policy is subject to change without notice.”
Further, ticket purchasers automatically agree to arbitration if they initiate a dispute.
A popular and reputable online ticket broker (intentionally not identified by name here) that specializes in Kentucky Derby and Kentucky Oaks tickets has a very restrictive refund policy that is spelled out on its website in bold-faced capital letters:
ALL SALES ARE FINAL. WE ARE NOT RESPONSIBLE FOR WEATHER RELATED EVENTS, STRIKES OR OTHER LABOR DISTURBANCES, LOSS OF POWER, FIRE, ACTS OF GOD, HEALTH CRISIS, ACTS OF TERRORISM OR ANY OTHER CAUSE BEYOND OUR REASONABLE CONTROL THAT COULD CANCEL, MODIFY OR RESULT IN THE RESCHEDULING OF THIS EVENT.
By contrast, StubHub has a very customer-friendly policy:
“Our policy is to provide a full refund with fees if an event is canceled. In addition, given the current environment, if an event is canceled, customers can opt to receive a StubHub coupon valued at 120% of the original purchase. This coupon can be applied toward a future event of their choosing.”
When buying tickets to any event in advance, the age-old caveat “to read the fine print” is sound advice.
Copyright © 2020 Horse Racing Business
Recent Comments