Lessons for restaurants and caterers
A Restaurant Catered the Masters With No Price Agreed. The $75,000 Bill Ended Up in Court.
A $75,000 Catering Bill With No Contract: What to Get in Writing Before You Cater an Event
By Kevin Ho 5 min read
In this article
In March 2022, a couple had a meal they loved at a high-end restaurant in Orange County, California. They loved it so much that they reached out to the restaurant group's chief operating officer afterward with a request.
Their son was playing in the Masters the next month. Could the restaurant feed their family and friends in Augusta for the whole week?
The restaurant said yes. It sent a menu with breakfast and dinner for seven days, for 20 to 30 guests a meal. The family approved it.
Nobody signed a contract. Nobody talked about price.
The restaurant delivered. For five days, it served breakfast, dinner, and a full bar to an average of 25 guests per meal. The family left two days early. After the tournament, they texted: "We just want to thank you for everything this week. The staff, the food, everything was perfect."
Then the bill came.
What happened next
The invoice was $74,960, including a $5,000 discount. The client disputed it in a letter, writing that had he known the cost, he "would have gone in a totally different direction."
The restaurant pulled the discount and added $5,000 for the time and delay in getting paid, bringing the bill to $84,960. It wasn't paid. The restaurant sued for breach of contract.
At trial, the client agreed the food and service were provided but argued they were worth less than he was billed. The jury sided with the restaurant and awarded $60,391.
The restaurant then asked for $81,875 in extra legal fees and $25,741.20 in court reporter costs. It was awarded $1,950 in fees and none of the reporter costs. On October 29, 2026, the California Court of Appeal upheld both orders.
So the restaurant won. It also spent more than four years, from the 2022 Masters to the 2026 appeal, getting paid less than its bill for a week of work it did well.
The food wasn't the problem. The paperwork was.
The court found there was a real contract. The emails and the approved menu were enough. As the opinion put it, "it is well settled that a contract need not specify price if it can be objectively determined."
But "enforceable in court" is a low bar to run a business on. The whole trial came down to one question nobody answered up front: what was all of this worth?
It's an easy trap to fall into. The client is thrilled with your food. The order is big and exciting. Talking about price feels like it could cool things down. So the menu gets approved and everyone moves on.
What to put in writing before every large or private order
None of this needs a lawyer or a long contract. One page covers it.
- The total price, or a clear per-person price. Write the number down before the first plate goes out. If headcount can move, show the per-person price and what the total looks like at the low and high end of the range.
- What's included. Meals, the bar, staff, rentals, travel, and service charges. In this case, the menu covered the food, but the bill also covered a full bar and a team working out of town for a week.
- Dates, meals, and headcount. Which days, which meals, and how many guests. Here the menu said seven days and the family left after five. Decide ahead of time how that's handled.
- What happens when plans change. Say what happens if the guest count drops, a day gets cancelled, or the client leaves early. Agree on it while everyone is still excited, not after.
- A clear yes. Get a signature, or at least a reply that says "approved" to the quote with the price on it. Approving a menu is not the same as approving a price.
- Payment terms. When the invoice goes out and when it's due. Put it on the quote so the bill is never a surprise.
Why packages make this easier
Most of this problem goes away when the price is part of the offer from the start.
Set packages, priced per person, do a lot of the work for you. The planner sees what's included and what it costs before they ever ask. They can pick one, adjust the headcount, and say yes without a back-and-forth. And your team isn't writing a custom quote from scratch every time a great diner turns into a big catering request.
It also helps on the client's side. Planners booking for a team or a family want an easy, safe choice. A clear price is part of what makes it feel safe.
The takeaway
Your food can be perfect, and you can still lose months to a bill nobody agreed on.
Before the next big order goes out, send one page with the price, what's included, the dates and headcount, what happens if plans change, and when payment is due. Then get a yes on that page.
This article summarizes a published court decision and news coverage. It isn't legal advice. For contract questions, talk to a lawyer where you operate.
Sources: Hanna Carroll Restaurant Group LLC v. Hagestad, California Court of Appeal (Oct. 29, 2026); People; Times of India
