VFLA Eventco, LLC v. William Morris Endeavor Entertainment, LLC
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In California, VFLA Eventco, LLC (VFLA), a music festival organizer, sued Starry US Touring, Inc., Kali Uchis Touring, Inc., Big Grrrl Big Touring, Inc., and William Morris Endeavor Entertainment, LLC (WME) over the return of deposits paid to secure the performances of Ellie Goulding, Kali Uchis, and Lizzo at VFLA’s music festival scheduled for June 2020. Due to the COVID-19 pandemic and government restrictions, VFLA cancelled the festival and demanded the return of the deposits from WME, who negotiated the performance contracts and held the deposits as the artists’ agent. VFLA claimed its right to the deposits under the force majeure provision in the parties’ performance contracts. The artists refused VFLA’s demand, claiming VFLA bore the risk of a cancellation due to the pandemic. The trial court granted summary judgment in favor of the artists and WME.
The Court of Appeal of the State of California Second Appellate District affirmed the judgment, holding that the trial court properly granted summary judgment in favor of the artists and WME. The court interpreted the force majeure provision as not reasonably susceptible to VFLA’s interpretation, and favoring the artists. The court also held that the artists’ interpretation did not work an invalid forfeiture or make the performance contracts unlawful.
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