With its judgment dated April 14, 2021 (Case No.: 154 C 6021/20), the Munich District Court addressed a central question in the context of numerous event cancellations during the COVID-19 pandemic: Is it lawful to issue a voucher instead of refunding the ticket price for a canceled cultural event? The decision provides essential guidance for both organizers and ticket holders and illustrates the impact of legislative measures on existing contractual relationships.
Background: Massive event cancellations and legislative responses
Pandemic-related challenges for businesses and consumers
The general restriction of public life due to the pandemic posed significant economic challenges especially for the events industry. Due to government-imposed contact restrictions, numerous cultural, sports, and leisure events had to be canceled or postponed. Many attendees demanded immediate reimbursement of the ticket price for already purchased tickets. Organizers increasingly reached liquidity-related limits in the face of a massive wave of refund claims.
Legal regulation to mitigate the wave of refund claims
To avoid the risk of insolvencies across the industry, the legislator introduced a so-called “voucher solution” – limited in time to pandemic-related cancellations – with the COVID-19 Refund Act (Art. 240 § 5 EGBGB). According to this, organizers could issue a voucher equivalent to the ticket value instead of making a refund. This instrument was intended to cushion the massive economic risks for providers while still protecting the legitimate interests of consumers. The voucher solution applied exclusively to events canceled due to COVID-19.
Case-by-case legal examination: The Munich District Court on the validity of the voucher regulation
Facts: Theater performance canceled, voucher issued
The decision of the District Court was based on the case of a visitor who had purchased tickets for a theater evening in Munich. Due to official prohibition, the event could not take place. The organizer issued a voucher to the ticket holder. However, she insisted on an immediate refund of the paid amount and filed a claim.
Main point of dispute: Refund claim despite voucher?
The core dispute was whether there is an immediately due claim for refund of the ticket price or whether this is excluded due to the voucher regulation. The Munich District Court ruled that the refund obligation is suspended in this case. The statutory priority of the voucher over immediate monetary claims applies even if the ticket holder – as in the present case – expressly refuses to redeem the voucher.
Consumer rights remain protected
It is essential that the voucher solution does not constitute a complete exclusion of the refund obligation. Consumers who are in financial distress or who have not redeemed the voucher by the end of 2021 may claim a refund. The court emphasized that these legal exceptions are a part of the regulatory framework and therefore accommodate the fundamental rights protection of consumers.
Practical consequences and further implications for organizers and ticket holders
Impact on ongoing contractual relationships
The decision confirms that under special legislative provisions, organizers are entitled to issue vouchers for events canceled due to the pandemic. At the same time, affected ticket holders may assert refund claims after the deadline or in cases of particular hardship.
Continuity in contract law and limited duration of the regulation
The case law also clarifies that the voucher solution is a limited, extraordinary measure and does not apply outside of pandemic-related cancellations. Existing and future event contracts thus remain subject to general contract law except for the specific statutory provision.
No premature insolvency of organizers
To protect organizers, the voucher regulation prevents immediate liquidity burdens without excluding fundamental consumer rights. The regulation thereby contributes to balancing economic and private interests in extraordinary crisis times without unfairly disadvantaging the legal position of either party.
Conclusion and outlook
With its ruling, the Munich District Court provides legal certainty for the handling of events that could not be held due to the pandemic within the scope of the voucher solution. Both organizers and ticket holders should equally observe the legal requirements and deadlines. For individual cases—especially in cases of unclear applicability of the voucher regulation or regarding refund modalities after the deadline—it is advisable to obtain an individual legal assessment.
For detailed information and a legally secure evaluation of your individual situation concerning pandemic-related event cancellations, the lawyers at MTR Legal are gladly at your disposal.
