Ironman win lawsuit – Judge says ‘no refunds means… no refunds’
A United States District judge has brought to an end the class-action lawsuit against Ironman over lack of refunds due to cancellation of races by Government mandate because of the Covid-19 pandemic, ruling that the “no refunds” clause of the participant contract is both clear and not unconscionable.
The two lead plaintiffs Mikaela Ellenwood of Denver, Colorado and Jorge Casanova of Vallejo, California, filed the suit against World Triathlon Corporation (WTC) and CGI, the respective owners of the popular Ironman and Rock ‘n’ Roll Marathon Series race brands. The claimant’s complaint was the organisers did not deliver the event for which they and other class-member paid. The claimants allege the deferral options offered namely transfer registrations to future comparable races “are not equivalent to what they bargained for”. Ellenwood and Casanova were ultimately seeking refunds for themselves and the class calling the refusal to refund entry fees a tactic “to maintain revenue and profit”.
On Thursday, U.S. District Judge Tom Barber granted WTC’s request for summary judgment after finding that the contracts signed by the two lead plaintiffs clearly and unambiguously state that there will be no refunds for cancellations because of something beyond the company’s control, like the weather.
“This is a very simple case,” the judge said. “‘No refunds’ means exactly what it says — no refunds.”
The judge also said that rather than being unconscionable, a no-refund clause is “fair and consistent with common sense,” given the type of event at issue.
“If it were deemed unconscionable for the host of an outdoor sporting event to include a ‘no refund’ provision in its contracts, it is unlikely any rational economic actor would ever agree to host an outdoor sporting event due to the many weather-related contingencies that can and do occur,” Judge Barber said.
Mikaela Ellenwood of Denver, Colorado, said she had paid $89 plus a $14.99 processing fee for a Rock ‘n’ Roll Marathon event that was supposed to be held in San Francisco on April 5. Jorge Casanova of Vallejo, California, paid $399.60 plus a $29.60 processing fee for registration for an Ironman triathlon that was to be held in Santa Rosa, California, on May 9, according to the complaint.
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This claim was always a dubious proposition at best. Whilst the claimants were understandably upset and frustrated over losing registration fees, when they signed up for the races there were number of waivers and terms and conditions they accepted and agreed to. For instance, it’s fairly common to acknowledge that you will not be refunded in the event of a cancellation due to weather or due to an act of God—commonly referred to as a “force majeure” clause. The same legal waiver applies to Ironman and Rock n’ Roll registrants alike.
It should be noted that whilst WTC did not offer any refunds, they did offer opportunities for the plaintiffs and other registrants to transfer registrations to future comparable races
Long story short, the pandemic has impacted the entire Triathlon racing community. It is a time when we are stronger together in seeking the best possible solution for everyone involved and at the same time accepting the fact, that everyone has to give up a little piece of their personal ideal situation. The alternative is refunds leading to event organisers going bankrupt equating to less races particularly the smaller race series and events. This surely is in the interest of no-one.
