Ticketing giant Ticketmaster, embroiled in a class action lawsuit over its processing and delivery fees, is suing its insurance carrier, Illinois Union Insurance Co., for more than $4 million over the insurance company’s alleged refusal to pay the legal expenses in the class action.
Ticketmaster claims that its $10 million insurance policy with Illinois Union should cover the legal expenses in the case, but the insurer denied the claim, according to the Los Angeles Times, which first reported the story.
In the class action lawsuit, ticket buyers in Illinois and New York, who represent the class, accused Ticketmaster of allegedly misleading them into believing that the company’s “Order Processing Charge” and “UPS Delivery” charge were passed on fees, not profit generators. The fees ranged from $14.50 to $25 for various forms of ticket delivery.
The class action case was originally filed in 2003, but it was not granted class status until earlier this year. It covers consumers who purchased tickets between 1999 and early 2010.
Such processing and delivery fees have long been a staple of the ticketing industry, but have been a source of frustration for many fans for an equal amount of time. Ticketmaster, which is a division of Live Nation, has maintained that the fees are necessary and fair, and in some cases are not entirely set by them but by venues, promoters or teams.
In addition to the number of years in question, the class could end up being substantial because attorneys representing the consumers launched a Web site in an effort to attract more plaintiffs.
Illinois Union allegedly denied Ticketmaster’s claim for the insurer to pay for the more than $4 million in legal fees because the insurance company believes the lawsuit is based on profit that Ticketmaster allegedly should not be receiving, according to the Los Angeles Times. Ticketmaster’s lawsuit was filed late last week in Los Angeles Superior Court.
A spokesperson for the law firm Dickstein Shapiro LLC, which specializes in insurance litigation and represents Ticketmaster, did not respond to a message seeking comment.