The sponsor of the annual Los Angeles Gay Pride Celebration parade filed suit alleging that the City of West Hollywood and Caltrans were violating free speech rights by requiring unobtainable levels of insurance before granting permits. The Los Angeles Superior Court suit, filed by Christopher Street West Assn. Inc., seeks an injunction restraining the city and state from enforcing the insurance requirements. Tracy Jordan, attorney for the sponsors of the planned June 22 parade, said that when the lawsuit was prepared and typed the city was demanding $1 million of insurance and the state required $5 million. The lawyer said the city has since agreed that $500,000 would be sufficient and the state has lowered its figure to $1 million and negotiations are continuing. “If we can get $500,000 (in insurance coverage) and they will accept $500,000, then we’re not going to proceed with the lawsuit,” she said.