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Pitch fee refunds or compensation?

Pitch fee refunds or compensation?

Many parks have delayed giving  a response and understandably. However, the issue is going to get more pressing the closer to re-opening you get. This is not helped by commentators in the press, TV and social media whipping it up and telling Owners they should be entitled to a refund or compensation.

The economics of many parks may be precarious for this season and handing money back is not going to be the first choice for any park.

Parks where Owners pay pitch fees by instalments or delayed paying until after lockdown will have a particular problem.

Parks where some Owners left at the beginning of closure, but others remained also have a dilemma. Do you reward those who complied with the law and somehow punish those who stayed, or do you treat them all the same and risk annoying Owners who have complied and stayed away?  Feelings on some parks are already running high about this.

Each park is different and the Owner’s legal rights depend upon the terms of the pitch licence the park has with the Owner. However, for many parks there is no automatic obligation to give a refund or compensation.

Some parks are deciding to give something back as a goodwill gesture. This has to be done carefully to avoid acknowledging there is an obligation to give a refund and opening the flood gates. What one park does will be used by Owners on another park to bring pressure on the park their unit is on.

If you are unsure what your legal position is with pitch fee refunds or compensation, we are happy to look at it for you and work with you to find a strategy you can apply consistently for keeping your pitch fees while maintaining a good relationship with your customers.

Please get in touch with us if you need help with this.

Philip Lewis-Ogden

Please contact Philip Lewis-Ogden on 07539 361037

the SJP Law office

Please contact the SJP Law office on 01482 324591

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