SXSW was one of the first major music events to be canceled in March 2020 due to the coronavirus pandemic. Organizers were unable to provide a refund “because SXSW has to spend huge sums of money preparing to host a festival,” Kennedy wrote, but the event offered the opportunity to defer information from identification 2020 at a future date as well as the right to purchase identification information for another year at a 50% discount. About 80% of buyers of credentials accepted this offer. However, a number of participants did not lead to an April 27 class action lawsuit against South by Southwest filed by participants Steven Leventhal, Maria Bromley and Kleber Pauta, alleging breach of contract, conversion and unjust enrichment.
Kennedy argues that South by Southwest’s federal insurance policy includes liability coverage and requires the company to pay for SXSW’s legal defense in the class action lawsuit, but Federal Insurance says the policy excludes coverage related to contract disputes and professional services. Kennedy argues that Federal Insurance misinterprets the contract and is still obligated to defend the organization against unjust conversion and enrichment claims.
Kennedy is asking a district court judge to force the insurance provider to fund SXSW’s legal defense and pay damages, interest and legal fees over charges of breach of contract and breach of contract. Texas Insurance Codes.
BillboardP-MRC’s parent company invested 50% in SXSW in April.