A group of Orthodox and conservative Jews who paid thousands in deposits to attend Passover retreats that were canceled over COVID-19 stay-at-home orders have banded together for a putative class-action lawsuit to demand refunds.

The case raises questions about the circumstances under which businesses should bear the cost of COVID-19.

Attorneys Paul J. Schwiep and Daniel Blonsky of Coffey Burlington in Miami represent named plaintiff Milana Bachayev, a Colorado nurse who claims she saved for three years and paid more than $5,000 to reserve her family's place at Pesach 2020, which would have started at the Bonaventure Resort and Spa in Weston on April 8.

The vacation package costs more than $12,000, including room and board, according to the lawsuit, which says customers were offered 65% of their money back.

The complaint alleges breach of contract by the resort and the event sponsor and organizer, kosher travel and tourism company Kosherica LLC, based in Miami Beach.

For Schwiep, the case demonstrates the circumstances under which businesses should bear the cost of COVID-19.

"The virus has caused a series of cascading losses, and we're playing a game of musical chairs about where the loss should ultimately land," Schwiep said. "In this case, what we are alleging is that the losses should not be visited on those least able to bear it, the clients of companies that are in the business of providing these kinds of experiences."

Hundreds of people are affected, according to Schwiep, who says Florida law blocks the defendants from keeping that 35%.

While Kosherica's contract says customers who cancel can't get a refund, Schwiep says it mentions nothing about a situation like COVID-19.

Counsel to the defendants, Lawrence M. Schantz of Aaronson Schantz Beiley in Miami, stressed that the majority of customers agreed to either attend next year's program with the money they'd already paid or to accept 65% of their money back.

"Well before this virus, we paid out all of the deposit money. We're a small family company. We don't have these kinds of millions of dollars, so we went out in great hardship, we borrowed and used resources to put out a program to all the people, and we've already signed up over 90%," Schantz said. "We would like to keep these customers. They've been very good customers for years."

Schantz said his clients have suffered losses of their own, having been unable to recover deposits from hotels and vendors involved in their programs. If Kosherica were to refund everything, Schantz said they could go bankrupt.

But Schwiep said that's not his client's problem.

"Our view is if they've lost deposits, they should seek those deposits from the vendors and the hotels with which they have longstanding relationships," Schwiep said.

While Schwiep said his clients are sympathetic that it's not the defendants' fault that COVID-19 upended their vacations, they argue it's unfair to leave customers holding the bag.

"They've had very successful years. We understand this will not be a successful year for them. We wish them successful years in the future. But, just as they don't share their profits with their clients in good years, they can't visit on clients their losses in a bad year," Schwiep said. "We just want them to do the right thing by their clients and fully refund their deposits."

Miami-Dade Circuit Judge Maria de Jesus Santovenia will preside over the lawsuit, which seeks a refund, interest, attorney fees and costs.

|

More class action stories: