SXSW is suing its insurance company for not covering the event's legal fees in an ongoing class action suit from attendees wanting refunds for last year's canceled event.
SXSW 2020 banners are seen in the Red River Cultural District on March 6, 2020 in Austin Texas.Organizers of the annual South by Southwest festival in Austin are suing Federal Insurance Company for not covering the event's legal fees in an ongoing class action suit from attendees wanting thousands of dollars in refunds for last year's canceled event.filed a complaint Wednesday in the U.S.
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 there is language in the policy excluding coverage related to contractual disputes and professional services. Kennedy argues that Federal Insurance is misreading the contract and is still obligated to defend the organization against the conversion and unjust enrichment claims.
Kennedy is asking a district court judge to force the insurance provider to fund SXSW's legal defense and pay damages, interests and legals costs as a result of charges of breach of contract and violations of Texas' insurance codes.
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