Yes you have legal recourse. You can all jointly or separately sue the daycare provider for the credits.  However, read your contract first.  Just like in insurance, if the issue is as a result of an act of God, it may not be covered and the court may disallow a refund because a) it was not the fault of the daycare and b) it was a natural disaster. Now, you must be very certain the teachers were not paid.  If the teachers were not paid, they may have recourse for the same reasons.  Again, read the contract first.  You may also wish to contact your state department that handles licensing of this daycare.