UPDATE: According to court documents filed by Insomniac, Inc., the company is seeking damages between $1,015,180 and $1,142,027. Not cheap for a city that is already facing down a huge budget deficit.

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Los Angeles dance music event company Insomniac—the promoters behind the embattled Electric Daisy Carnival—filed suit Friday against the City of Los Angeles and the Los Angeles Convention Center (LACC) over an alleged contract violation, following the cancellation of a concert by trance mega-star DJ Tiësto, schedule to take place at the LACC on October 30th, 2010.

In a press release sent out by Insomniac, the company claims that the the event was canceled by the LACC, “citing an unrelated event that took place at another facility completely unrelated to this artist and this concert.” That event is, of course, the Electric Daisy Carnival, the dance music mega-event held this past June that drew nearly 100,000 attendees a day to the Los Angeles Memorial Collisium. The event experienced a rash of negative press following several security and medical concerns, and the death of one 15-year-old attendee.

This move by the LACC come as a surprise, given that Insomniac has since adjusted all of their event to only allow patrons 18 years and older. The company also threw a successful event in neighboring Riverside County in late-July, and has been working with the Los Angeles County Rave Task Force to assure safer events in the future. Equally surprising is that the LACC would specifically take objection to a concert by Tiësto, a world renowned performer who has played such mainstream events as the 2004 Olympic Games Opening Ceremonies.

“Insomniac has promoted/produced five sold-out Tiesto concerts in Los Angeles in 2008 and 2009, all without incident,” said Insomniac founder Pasquale Rotella in the press release.

The release goes on to accuse the LACC of hypocrisy in actively pursuing Insomniac to produce an event at their venue, only to pull the rug out when EDC experienced difficulties. No word yet on where or when the scheduled Tiësto show might take place in Los Angeles. The remainder of Tiesto’s North American tour remains unaffected.