Reverses previous decision in insurance company's favor
The United States Court of Appeals for the Fifth Circuit has recently sided with South by Southwest in an ongoing lawsuit against its insurance company, reversing a previous decision in the insurer’s favor.
In addition to breach of contract, the class action plaintiffs alleged unjust enrichment and conversion – in other words, that SXSW took their money, didn’t provide a service, and wouldn’t give it back. Those claims are completely unrelated to the ticket contract, the court wrote, which means FIC must still defend the case.
“The Policy defines ‘professional services’ to include ‘services which are performed for others for a fee,’” the opinion states. “SXSW reasonably argues that ‘professional services’ might include SXSW’s actions in putting on the March 2020 festival. But ‘professional services’ would not extend to SXSW’s actions in refunding or not refunding ticket purchases, which are not services SXSW performs for a fee.”, SXSW declined to comment on the Fifth Circuit’s decision.
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