After nearly a year of legal back-and-forth, Insomniac and the promoters behind Club Space have quietly called a truce, cutting a deal that ends their federal fight over Factory Town and the downtown institution. The settlement keeps Insomniac in the mix at both venues while leaving Miami-based operators in charge of select projects around the city.
In a joint statement to Miami New Times, the partners said they “have amicably resolved their dispute,” adding that “Insomniac will continue to operate Club Space alongside David Sinopoli and maintain its commitment to Factory Town.” The statement also confirmed that Davide Danese and Jose Gabriel Coloma Cano will continue to operate Jolene and pursue new projects, while Sinopoli remains tied to Club Space.
Settlement Terms and Mediation History
The conflict traces back to Insomniac’s 2019 purchase of a majority stake in Club Space and the partners’ 2022 launch of Factory Town. The parties entered mediation in June 2025 and executed a settlement agreement the following month. Unsealed court filings from ALM show the binding term sheet called for Insomniac to pay roughly $2.9 million and state that the company alleged it had committed more than $40 million in lease, buildout and event expenses for Factory Town.
What the Operators Alleged
The club operators filed a counterclaim arguing Insomniac breached the agreement by making unilateral booking and business decisions and by failing to collaborate on flagship events. Their filing says Insomniac presented an offer to CircoLoco that represented a 44 percent increase over the prior year’s deal, using that example to argue the promoter’s approach was unreasonable. The counterclaim, filed with Miami New Times, lays out additional alleged breaches and seeks damages.
Dismissal and Reaction
Attorneys told Miami New Times that the case has been dismissed and the litigation closed, clearing a major cloud that had been hanging over two of Miami’s biggest dance destinations. Industry outlets framed the settlement as a practical win for the city’s event calendar, a resolution that removes uncertainty around Miami Music Week and Art Basel bookings. EDMTunes highlighted the deal’s immediate effect on promoter planning.
What to Expect at Shows
With the dispute resolved, promoters and fans are expected to see fewer cancellations or last-minute rebooks at both Club Space and Factory Town, which continue to advertise dates and lineups. Factory Town’s event pages currently show bookings through the summer and fall, underscoring that the venue remains active while Insomniac and local operators dial in their new operating rhythm. Listings on Dice indicate events remain on the calendar.
Legal Note
The settlement grew out of a binding term sheet produced during a 16-hour mediation overseen by retired Judge Michael Hanzman, who was granted limited authority to resolve certain disputes under the original agreement. That delegation, described in the court papers from ALM, means future disagreements tied to the settlement could be routed back through the same process instead of restarting fresh litigation.
For now, Miami’s late-night dance scene keeps its anchors. Club Space’s terrace parties and Factory Town’s marathon events look set to continue under a new operating arrangement, with both sides saying the focus will shift back to programming rather than paperwork.
