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Kanye West files $10 million lawsuit against insurers of canceled tour: Report

on August 01, 2017, 11:30pm

Following a string of on-stage meltdowns last November, Kanye West canceled the remainder of his Saint Pablo Tour. Shortly after, it was revealed the Chicago rapper-producer was involuntarily hospitalized for “temporary psychosis due to sleep deprivation and dehydration.” Now, The Hollywood Reporter has learned West has filed a lawsuit against the tour’s insurer, Lloyd’s of London, alleging the company of holding out on paying claims from the canceled tour.

According to the report, the suit states a loss claim was filed two days after West was checked into a psychiatric center, but he and his company, Very Good Touring, Inc., still haven’t been paid.

The suit cites West’s “strained, confused and erratic” behavior during a concert in Sacramento when he called out Beyoncé for playing politics with the VMAs, suggested Jay Z “got killers,” criticized President Obama for trying too hard to be perfect, and suggested DJ Khaled engaged in payola. The complaint further claims that after the tour was canceled and West was hospitalized, insurance companies were informed and later provided with sworn testimony from his primary physician there that West suffered a debilitating medical condition that prevented him from touring.

However, the suit alleges the insurers immediately began scrambling for excuses. “Almost immediately after the claim was submitted, Defendants selected legal counsel to oversee the adjustment of the claim, instead of the more normal approach of retaining a non-lawyer insurance adjuster,” states the complaint.

Part of the strategy used by the insurance companies included demanding West submit to an immediate IME (independent medical examination) while still under medical care and present to an EUO (examination under oath). “Kanye was made available for a purported IME by a doctor, hand-selected by the insurers’ counsel, who was predisposed to look for some reason to deny the claim,” the court papers state. “Yet even Defendants’ selected doctor had to admit that Kanye was disabled from being able to continue with the Tour.”

According to the complaint, insurers also demanded to interview other people outside of West’s purview to make a determination about the claim. The suit also alleges the defendants are citing “irrelevant facts” regarding the coverage and accuses the insurers of leaking private information to news outlets.

Among other things, the insurers have apparently implied West’s marijuana use could allow them to deny the claim.

“Nor have they provided anything approaching a coherent explanation about why they have not paid, or any indication if they will ever pay or even make a coverage decision, implying that Kanye’s use of marijuana may provide them with a basis to deny the claim and retain the hundreds of thousands of dollars in insurance premiums paid by Very Good. The stalling is emblematic of a broader modus operandi of the insurers of never-ending post-claim underwriting where the insurers hunt for some contrived excuse not to pay.”

“Plaintiff is informed and believes that the ‘planting’ of the Confidential Information with news outlets… was part and parcel of Defendants’ efforts to impair Plaintiff’s rights to the indemnity payments due under the Insurance Policies,” states the complaint, citing a non-disclosure agreement between the parties.

As such, West has filed a lawsuit alleging breach of contract and breach of good faith and fair dealing against the various entities including Cathedral Syndicate. Last month, West threatened legal action against JAY-Z’s streaming service, TIDAL.

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