The court’s ruling handed Federal a significant victory in September 2022. But the legal battle did not stop there. On appeal, SXSW and the insurer continued their sparring over whether certain claims, such as unjust enrichment and conversion, fell outside the policy’s exclusions.
SXSW Coverage Dispute Settlement : Appeals Court Reverses Insurer’s Win
In a twist, a three-judge panel of the appeals court reversed the insurer’s summary judgment win in March 2023. The court found that the unjust enrichment and conversion claims should have been covered under the policy, as these claims did not arise from any contractual obligations. Federal’s argument that the claims were tied to the ticket agreements failed to sway the judges.
Despite Federal’s bid for a rehearing in May, the court stood firm, refusing to revisit the decision. This left the insurer with little choice but to negotiate a settlement with SXSW.
A Quiet Conclusion to a Public Legal Saga
Though the parties involved have opted to stay silent on the details of their settlement, the resolution brings an end to a contentious chapter for SXSW. The class action by ticket holders, now settled, and the coverage dispute that followed, marks a turning point for festivals and other events grappling with the fallout of pandemic-related cancellations.
