In a new lawsuit, Kanye West alleges there was a breach of contract and breach of good faith between him and the insurance companies involved with his called off tour last year.
According to The Hollywood Reporter, West’s touring company is suing several organizations involved with the insurance company Lloyd’s of London.
The suit filed by Very Good Touring against several Lloyd’s of London syndicates alleges breach of contract and seeks punitive damages and lawyer fees beyond the US$9.8 million in concert losses.
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In the suit, the rapper alleges they’ve yet to pay claims resulting from his dropped Saint Pablo Tour. West claims that after his tour was scrapped, he had checked himself into a psychiatric center. Unfortunately, both West and his company Very Good Touring, Inc. have yet to have been paid. In addition to not being paid, there has not been a reasonable explanation as to why or an idea of when they will be paid.
“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,” a statement filed on Tuesday reads.
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This stalling, according to the complaint, is a result of Lloyd’s of London looking for an excuse not to pay the rapper and his company.
According to the complaint, West’s managers reached out to the insurance company to seek advice for if and when cancellations occurred. West famously cancelled the extended part of the tour after things started to get a bit crazy. It all started during the second concert when he told the crowd a controversial statement.
“I said something that was politically incorrect. I told you I didn’t vote, but if I were to have voted, I would have voted for Trump,” West said, and immediately made headlines following his admission. After that, West continued to make several erratic appearances and in the lawsuit addresses his behaviour.
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After the tour cancellation and West’s hospitalization, the insurance companies involved with the tour and the rapper were informed. They were also given a sworn testimony from West’s physician that he had endured a debilitating medical condition that resulted in him ending the tour early. But according to the suit, that was not enough.
“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. Immediately turning to legal counsel made it clear that Defendants’ goal was to hunt for any ostensible excuse, no matter how fanciful, to deny coverage or to maneuver themselves into a position of trying to negotiate a discount on the loss payment,” the complaint reads.
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According to the complaint, West alleges he was forced to submit an independent medical examination by a doctor picked by the insurance companies.
“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. Yet even Defendants’ selected doctor had to admit that Kanye was disabled from being able to continue with the Tour. As demanded by the insurers, Kanye was also subsequently presented for an examination under oath (“EUO”), and at least eleven other persons affiliated with Kanye and Very Good were similarly presented for EUOs,” the statement claims.
The lawsuit also claims that insurers were the one who leaked private information regarding West’s hospitalization:
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“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,”
West’s lawyer, Howard King, released a statement regarding the lawsuit. According to King, artists like West who pay a lot of money to insurance companies in case cancellations happen should see this case as a warning.
“Lloyd’s companies enjoy collecting bounteous premiums; they don’t enjoy paying claims, no matter how legitimate. Their business model thrives on conducting unending ‘investigations,’ of bona fide coverage requests, stalling interminably, running up their insured’s costs, and avoiding coverage decisions based on flimsy excuses. The artists think they’re buying peace of mind. The insurers know they’re just selling a ticket to the courthouse,” King said.
Very Good Touring is seeking a jury trial in the matter.
—With files from The Associated Press
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