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The Collaborative Clearinghouse for Lawsuits and Other Claims Against ACE Group Insurance Companies

Ticketmaster LLC Locks Horns with ACE Group Company Over Errors and Omissions Coverage

January 13, 2011- Ticketmaster LLC and Illinois Union Insurance Co. will stay in State court to argue the retailer’s claim of “despicable" conduct by the insurer’s repeated failure to aid in its defense of a long-running lawsuit.  

 

Ticketmaster, of West Hollywood, Calif., sued Chicago-based Illinois Union in Los Angeles Superior Court on Dec. 3, 2010 claiming breach of contract and failure to act in good faith in denying coverage for a 2003 lawsuit. Illinois Union has fired back with a notice of removal of the suit to U.S. District Court in Los Angeles, citing the amount involved in the suit and a diversity of citizenship. The motion for removal was subsequently denied.


The fight between customer and insurer dates to Oct. 21, 2003, when three individuals sued Ticketmaster in California state court. They alleged that Ticketmaster had misrepresented delivery charges and order fees.


To date, Ticketmaster said it has spent $4 million defending itself. But it said that when it invoked its E&O coverage provisions with Illinois Union, the insurer responded instead with a letter of denial penned by its parent company, ACE.


ACE contested any coverage duty on three points, said Ticketmaster. First, it said that the company’s tussle with its customers was a dispute over fees, which is excluded from coverage. ACE further said that the suit sought disgorgement by Ticketmaster, which is excluded from the definition of covered damages under the policy.  And it noted that the petition arose out of gaining profits to which Ticketmaster is not entitled.


Ticketmaster said in its lawsuit that its alleged wrongful acts arose from purported misrepresentations in connection with the sale of tickets, which is covered by the policy.  Illinois Union had a duty to investigate Ticketmaster’s claim, but instead has “artificially and narrowly interpreted policy provisions,” according to Ticketmaster.  Illinois Union’s actions not only have shown a disregard for Ticketmaster’s rights, the company said, but have been contrary to insurance industry standards and laws.


Ticketmaster seeks $4 million in damages, plus attorney’s fees and unspecified punitive damages.  
 


Read More:
Web site launched to attract class action participants in Ticketmaster fees case – Ticket News

 

Photo courtesy of: Creative Commons

 

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