'Unconscionable': 9th Circuit Rejects Live Nation's Arbitration Appeal

Live Nation Entertainment and its ticketing subsidiary Ticketmaster will no longer be able to force consumers to arbitrate their antitrust claims, a U.S. appeals court ruled.

The 9th U.S. Circuit Court of Appeals upheld a lower judge’s 2023 ruling in Heckman v. Live Nation Entertainment, which said Live Nation could not enforce contract provisions that required ticket buyers to arbitrate their claims instead of suing them in federal court. The appeals panel called the arbitration rules unfair to consumers, while “overtly” beneficial to defendants.

While private arbitration has worked for the ticketing giant in the past, Ticketmaster changed its chosen arbitrator from a company called JAMS to another company, New Era. Last year, U.S. District Judge George H. Wu rejected the bid by Live Nation and Ticketmaster, noting that the change in arbitrator was an “unfair surprise” for ticket buyers and the forced-arbitration was “procedurally unconscionable.” Additionally, he questioned the power of the mass arbitration process that could group cases together. Wu said this would limit clients’ ability to prove their cases in court.

“It is plain that it would be impossible for plaintiffs to present their claims on equal footing to Live Nation,” Judge William Fletcher wrote for the Ninth Circuit. “Forced to accept Terms that can be changed without notice, a plaintiff then must arbitrate under New Era’s opaque and unfair Rules.”

Judge Morgan Christen and Judge Lawrence VanDyke echoed similar sentiments, with VanDyke noting that the Federal Arbitration Act “does not apply to the type of mass ‘arbitration’ contemplated by Live Nation’s agreements.”

Previously, Live Nation said they “respectfully” disagreed with the ruling, calling “the district court’s refusal to send this case to arbitration is inexplicable given the parties’ clear intent … nothing about the mere change in arbitration providers here was unfair, unexpected, or otherwise unconscionable.”

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Kinder Law PLLC — the woman-owned personal injury law firm in Dallas, Texas representing over 355 Swifties in an ongoing federal case in California against Ticketmaster — celebrated the appeals court ruling. This is a step in the right direction for Swifties, who have been actively calling attention to Ticketmaster for over a year.

“We are ecstatic,” Jennifer Kinder of Kinder Law told TicketNews in a statement. “It’s the first step in a long march to justice. Consumers arm  in arm until the monster (Ticketmaster) is defeated. We will not stop until consumers have fairness and equity in live entertainment. Consumers are NEVER, EVER, GETTING BACK TOGETHER….with Ticketmaster.”

Live Nation and Ticketmaster are currently targets of an antitrust lawsuit by the Department of Justice, 39 states, and the District of Columbia. The lawsuit alleges monopolistic and anticompetitive practices, aiming to break-up the pair. A trial date is set for March 2026. The entertainment giant was also just recently the subject of a scathing investigative report by ABC TV in Australia, leading to plans for a ban on “dynamic” ticket pricing practices.