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Ultra Music Festival sued over no-refund policy

Dance music promoter Ultra is being pursued by the same law firm going after South by Southwest, which has taken aim at its "impermissible ticket contract terms"

By IQ on 28 May 2020

Ultra Music Festival returns in March 2021

image © Felixfro/www.felixfro.com

Ultra Enterprises, the company behind Miami’s Ultra Music Festival (UMF) and Ultra music events globally, has been hit with a lawsuit over its alleged refusal to offer cash refunds to those with tickets for the cancelled UMF 2020.

The 2020 festival, scheduled for 20–22 March in Miami, Florida, was called off in early March, becoming one of the first casualties of the Covid-19 pandemic that went on to claim almost the entire festival summer.

The proposed class action, filed in the US district court for southern Florida, accuses Ultra of conversion and unjust enrichment. Plaintiffs Samuel Hernandez and Richard Montoure claim the company’s insistence that they must hold onto their tickets and transfer them to UMF 2021 or ’22 is based on “impermissible ticket contract terms”, according to Law360; Ultra’s terms and conditions say it reserves the right to issue a full or partial refund, or no cash refund at all.

This, argue Hernandez and Montoure’s lawyers, means UMF – by reserving the right to keep money paid for tickets regardless of whether it puts on the show – is “essentially (and impermissibly) rendering its obligations under the [T&Cs] illusory, and the agreement itself an unenforceable unilateral option contract.”

“We do not believe Ultra Music Festival has the right to shift the burden of this extraordinary crisis onto its customers”

Hernandez sought refunds on four of six tickets he bought, for a total of US$3,000, while Montoure wanted a refund of two three-day passes he purchased for about $1,000.

“We understand that the Covid-19 pandemic has impacted every part of the global economy but we do not believe that gives the Ultra Music Festival the right to shift the burden of this extraordinary crisis onto its customers, who, in some cases, paid hundreds of dollars to attend this festival,” Joe Sauder of Sauder Schelkopf – which is also suing South by Southwest on behalf of out-of-pocket ticketholders – tells Rolling Stone, “and now the Covid-19 pandemic has or will preclude them from ever using any credit.

“We look forward to seeking to recover cash refunds for our clients and the class members.”

In addition to Ultra and South by Southwest, several ticketing companies are also facing legal action over their refusal to offer cash refunds for cancelled shows, with SeatGeek and StubHub the target of one and two legal actions, respectively.


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