If Ipurchased a gift certificate from a spa that has npw closed, amI entitled to a refund?

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If Ipurchased a gift certificate from a spa that has npw closed, amI entitled to a refund?

Owner doesn’t want to refund our money. Can she keep it or is this illegal? The company is not in bankruptcy, it is simply closing. This is an LLC company. There were gift certificates and prepaid packages that were sold.

Asked on October 26, 2010 under General Practice, Maryland

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

1) If it's an LLC, you can't sue or otherwise have any recourse against the owner--she is insulated from liability for her business's obligations or debts. All you can do is proceed against the company.

2) You can certainly sue the company for a refund. Legally, it may be obligated to repay you. The problem is collecting; if the company is out of business, has no money, no income, and even potentially few if any other assets (e.g. not much left in the way of equipment to sell to satisfy debts), then even if you win, you lose. If the company has nothing to pay you, you will not be paid; and as noted above, you cannot sue the owner herself. This may be a case where even if legally you are in the right, there is nothing you can do to vindicate your rights.


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