A newly unsealed federal complaint has revealed significant prelitigation developments in the ongoing dispute between Insomniac Holdings and its local Miami partners in Club Space and Factory Town. Retired Judge Michael Hanzman, appointed to oversee certain settlement agreement disputes, issued a binding, non-appealable order on July 31, 2025, appearing to side with Insomniac on major issues. Hanzman noted that despite having received a nearly $3 million settlement payment, the local Miami partners were seeking to impose more costs and expenses on Insomniac. Insomniac, Hanzman found, was merely seeking to enforce the plain language of the parties’ mediated settlement.
The findings in the order seem to suggest that the Miami partners were seeking to renegotiate the mediated settlement agreement, with Hanzman specifically noting that he does not “rewrite deals.” The ruling barred the Miami partners from unilateral booking decisions and made preliminary findings that the additional costs sought by the Miami partners were not Insomniac’s to bear.
The lawsuit alleges the Miami partners defied the settlement and Hanzman’s Order by refusing to co-promote agreed events, breaching confidentiality, and withholding assets, and more. Insomniac is seeking damages, disgorgement of settlement funds, and injunctive relief to protect its events, its reputation, and the consuming public.
Insomniac is represented by Jordan Shaw, Zachary Ludens, Gabriel Morales, and Lauren Palen of Shaw Lewenz
The case was featured in Law.com.