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Daycare Deposit

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gopre12

Junior Member
What is the name of your state (only U.S. law)? Minnesota
Hello quick question about small claims. Before our kid was born we were told to put down $200 to hold her spot for when my wife returned to work, we were told we didn't have to sign a contract. There was no contract signed whatsoever, except for our son who had been in that daycare and had a contract under his name since February of 2012, but no contract for our daughter. When we started him we received a daycare handbook with all the rates, rules, and regulations. Given that I can stay home much of the time and watch them, we only needed care for them 2 days per week. On the handbook it stated that part time care was available as long as the kids were there 2 days per week. When my wife called to tell the daycare that they would be there Tuesday and Thursday, they told us that they had not offered that since 2009, and we must have an old handbook. This is contrary to the handbook they had given us in 2012, which reflected current rates and the policy of offering part time care. We requested our $200 deposit back since we had not signed a contract and we had received written information telling us part time care was possible. The owner refused and said that since there was no contract they would apply the balance to our sons account. They claimed in the contract we signed that we were bound to full time care, even though it mentions that no where in his contract because I have a copy. I told her that she could not apply the $200 towards a different account since that was meant for my daughters spot. The owner said there was nothing to prove that we designated those funds to hold her spot. I did some digging and got a copy of the check, and on the "for" section it clearly states that the purpose is for my daughters deposit. They never had us sign a contract for our daughter, they just asked for money to hold her spot. Would I win in small claims court?
 


justalayman

Senior Member
why would you bother, seriously?

It isn't like they are simply keeping the money and you get nothing in return. They have stated they are wiling to apply it to your sons fees. Why is that a problem?
 

ecmst12

Senior Member
I guess you *could*, but what would be the point? You are going to have to pay them the money in a few weeks when your son's next bill is due anyway, right? You won't even get into court before then.
 

gopre12

Junior Member
Why not just apply it to the son's account? It's not a hill to die on.
We took son out of daycare due to refusal to provide services stated in handbook. We don't have any bills for the daycare that will be coming up in the future.
 

Zigner

Senior Member, Non-Attorney
Based solely on what you have posted, it sounds like you have a decent shot at prevailing in small claims court.
 

justalayman

Senior Member
We took son out of daycare due to refusal to provide services stated in handbook. We don't have any bills for the daycare that will be coming up in the future.
by chance, did you give notice of terminating his care? Do you have a definite term contract that you are breaching (and could be liable for)?

If you withdrew your son, why would they offer to apply the money to your son's account? That doesn't make any sense.
 

gopre12

Junior Member
by chance, did you give notice of terminating his care? Do you have a definite term contract that you are breaching (and could be liable for)?

If you withdrew your son, why would they offer to apply the money to your son's account? That doesn't make any sense.
I believe it was because they wanted to either find a way to get him back full time, or they knew we wouldn't re enroll him so they figured that would give them a way to keep the money. They only offered this option after they realized they didn't have paperwork on our daughter, including a contract. In the end, I think it was a way for them to try to hold on to the money, and they told us "you can't show that the $200 was for your daughters spot". Luckily, we kept a copy of the check where it clearly stated the purpose of that money.
 

justalayman

Senior Member
Before our kid was born we were told to put down $200 to hold her spot
so, you admit it was a holding deposit.

and you admit it wasn't specified the child would be full time or part time care.


They claimed in the contract we signed that we were bound to full time care, even though it mentions that no where in his contract because I have a copy.
Do you mean the contract for your son? If so, what did the daycare say when you physically showed them that there was nothing regarding it being full time care?


They never had us sign a contract for our daughter, they just asked for money to hold her spot.
and there is no such thing as a verbal contract?

got a copy of the check, and on the "for" section it clearly states that the purpose is for my daughters deposit.
that's great, for them. Now they have proof you paid a deposit to hold a spot open for your daughter. Now that you are not using that spot, they get to seek damages (the deposit) for damages.

I don't see this an easy win at all. I really don't see it as likely to be a win for you at all.
 

gopre12

Junior Member
so, you admit it was a holding deposit.
It was to hold her spot, and there was nothing to suggest we could not have it be a part time spot
and you admit it wasn't specified the child would be full time or part time care.
It was not specified by either party this aspect, just to hold the spot.

Do you mean the contract for your son? If so, what did the daycare say when you physically showed them that there was nothing regarding it being full time care?
We did not show them this, the way I see it these are two different contracts. Nothing is specified in my sons contract the time commitment.

and there is no such thing as a verbal contract?
No, no verbal commitments were made. Only a handbook showing that part time care was available. I think the handbook would prevail, as this is a breach of contract for failure to provide services. The handbook would prevail as this is the only written document we have to refer to regarding this. I think the handbook would take precedence and the daycare would be responsible for updating us on any changes to the handbook.


that's great, for them. Now they have proof you paid a deposit to hold a spot open for your daughter. Now that you are not using that spot, they get to seek damages (the deposit) for damages.
How is that, there is no contract in place.

I don't see this an easy win at all. I really don't see it as likely to be a win for you at all.
Thanks for playing devils advocate, what do you think?
 

gopre12

Junior Member
I think you had an oral contract with no enforceable cancellation terms. I think you will lose.
What about the handbook that states part time care is available but they refuse to provide it? I think on that basis that is a breach of contract. What oral contract besides the daycare holding the spot. Offering part time care in your handbook but then refusing to provide it later seems to me like a breach of contract
 

OHRoadwarrior

Senior Member
What about the handbook that states part time care is available but they refuse to provide it? I think on that basis that is a breach of contract. What oral contract besides the daycare holding the spot. Offering part time care in your handbook but then refusing to provide it later seems to me like a breach of contract
Ultimately it is up to the judge to decide. We can debate to infinity.
 

justalayman

Senior Member
What about the handbook that states part time care is available but they refuse to provide it? I think on that basis that is a breach of contract. What oral contract besides the daycare holding the spot. Offering part time care in your handbook but then refusing to provide it later seems to me like a breach of contract
the handbook is not a contract.
 

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