Non-Refundable Deposit Ruling in Small Claims Court
📌 In brief
In a recent small claims case, a couple sought the return of a deposit after cancelling a booking for their bachelor and bachelorette parties. The Civil Resolution Tribunal ruled that the deposit was non-refundable according to the cancellation policy and the resort's inability to rebook the event.
⚖️ Legal holding
A deposit paid in advance for a future event is non-refundable if the cancellation policy clearly states so and the service provider cannot rebook the event.
📖 Technical summary
The deposit was found to be non-refundable due to the cancellation policy and lack of comparable rebooking.
📚 Full judgment
The summary, holding and questions above are VadeLab’s own material. The official decision itself is published by the court, and we do not reproduce it on this page.
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The applicants' deposit was a true deposit, not a partial payment, because it was paid to secure dates for their event.
- The applicants repudiated the agreement when they cancelled the booking, so the respondent is entitled to keep the deposit unless the parties agreed it was refundable.
- A reasonable person would conclude from the respondent's April 12, 2024 email that the deposit was only refundable if the respondent could rebook the entire resort for the same package on the applicants' dates.
- The respondent proved it did not book a comparable package for the applicants' dates, as it only rented out two cabins on June 20 and 21, 2025.
- The applicants did not prove that the respondent must return the deposit, so their claim is dismissed.
❌ Tends to be rejected
- The applicants argued that the respondent did not explicitly say the deposit was non-refundable, so it should be refundable, but the court rejected this argument.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The decision dismissed the claim for the return of the deposit, ruling it non-refundable.
What was the dispute about?
The dispute was about whether a deposit paid for a future event was refundable after the event was cancelled.
How did the court decide, and why?
The court decided that the deposit was non-refundable because the cancellation policy stated it was non-refundable and the resort could not rebook the event.
Which laws or rules were applied?
No specific laws or rules were applied, the decision was based on the terms of the cancellation policy.
What was the argument that mattered most?
The argument that mattered most was the clear statement in the cancellation policy that the deposit was non-refundable.
Was the decision for or against the person who brought the case?
The decision was against the person who brought the case.
What does this mean for someone in a similar situation?
For someone in a similar situation, a deposit paid for a future event is likely non-refundable if the cancellation policy states it is non-refundable and the service provider cannot rebook the event.
What evidence or documents mattered?
The evidence that mattered included the cancellation policy and the resort's inability to rebook the event.