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There’s a new development in the federal lawsuit EDM giant Insomniac Holdings filed against the operators of Club Space.
Last week, Club Space operators David Sinopoli, Davide Danese, and Jose Coloma Cano, along with four related companies, lodged a counterclaim. The defendants, known collectively as CDD, accuse Insomniac and its founder, Pasquale Rotella, of breaching multiple agreements and obstructing their ability to operate during a period of growth.
This comes in response to the original August 4 complaint, in which Insomniac alleged that CDD had breached partnership agreements related to Factory Town, a Hialeah venue the parties had jointly developed, and had later threatened a smear campaign against Rotella in an attempt to force more favorable terms. That complaint, unsealed on September 10, painted the dispute as a story of betrayal, describing the CDD partners as “biting the hand that feeds.”
In its counterclaim, CDD denies those allegations and presents its own version of events.
“This action arises from Insomniac’s and Rotella’s repeated betrayal of the CDD parties in selfish pursuit of their own financial interests,” the complaint reads. It also alleges that Insomniac failed to honor specific terms of a settlement agreement signed earlier this year that governs joint operations and upcoming events.
“Coloma, David, and Davide (CDD) have established themselves as respected and valuable members of Miami’s community through years of supporting local artists and boosting the local economy through the creation, management, and operation of several high-profile dance music venues, Club Space, Factory Town, and III Points, among them,” Bruce A. Weil, an attorney for the defendants, tells New Times. “It is disappointing that Pasquale Rotella and Insomniac are manipulating the facts by accusing CDD of the exact misconduct they themselves have inflicted, while retaliating against Club Space by attempting to obstruct and undermine CDD’s ability to operate and manage it during a period of unprecedented success.”
From Partnership to Litigation
The partnership dates back to 2019, when Insomniac purchased a 51 percent stake in Club Space. The union expanded to Factory Town in 2021, with, according to the original lawsuit, “Insomniac providing all of the funding.” After proving the concept, both parties negotiated operating and management agreements. In the original lawsuit, Insomniac claims that the CDD parties rescinded their signatures, demanded millions in additional compensation and ownership, and withheld event revenues. The suit also alleges that CDD threatened to launch a smear campaign against Rotella unless its demands were met.
The new counterclaim lays out a different version of events. Once Insomniac secured the lease to Factory Town, the company “began methodically and unilaterally altering the terms of Insomniac’s long-standing agreement” with CDD, Sinopoli et al. allege. The changes allegedly included adjusting revenue splits in Insomniac’s favor, eliminating management fees, and reducing the CDD partners’ operational roles.
The counterclaim argues these weren’t market-driven adjustments, but rather a deliberate strategy to pressure the local partners into accepting less-generous terms.
“Fortunately, the truth is memorialized in the agreements and writings that support our claims and reject theirs,” Ian Humphrey, chief legal officer for Insomniac, responds in a written statement sent to New Times . “We look forward to the opportunity to present that to the court and to the community and to continue to uplift the Miami music scene.”
Dispute Over Hocus Pocus and Miami Art Week Event
A key element in the counterclaim involves alleged breaches of the earlier settlement agreement, which the CDD parties say required mutual collaboration on two major Miami events: a Halloween event called Hocus Pocus and a second event to coincide with Miami Art Week in December.
CDD’s counterclaim asserts that Insomniac failed to collaborate, refused to provide key information, and ultimately jeopardized the events, forcing CDD to move forward without its partner’s involvement. The defendants claim the alleged breaches entitle them to compensatory, special, and consequential damages.
Insomniac disputes these claims and maintains that CDD acted without approval, going so far as to sell tickets for Hocus Pocus using Club Space branding and platforms despite its prior objections.
“Their counterclaim is exactly what we expected: an ad hominem attack disguised as a pleading,” says Jordan Shaw, managing partner at Shaw Lewenz, the law firm representing Insomniac in the dispute. “The fact that they’re relying on social media posts and dropped charges from 20 years ago tells you what you need to know about the strength of their current claims.”
The counterclaim was filed in the U.S. District Court for the Southern District of Florida, where the original complaint is also being heard. The parties’ initial mediation took place in July under retired Miami-Dade Judge Michael Hanzman.
CDD is seeking damages and relief on multiple counts, including breach of contract, breach of good faith provisions, and interference with business operations.
The counterclaim can be found below. Click this link to see the original August 4 complaint. Click this link to see the recently unsealed settlement agreement.
