NEWS

Kanye West Files $10 Million Lawsuit Against Insurance Companies After Canceling Tour Due to Hospitalization

by Zach Seemayer 4:46 PM PDT, August 01, 2017
Playing Kanye West Files $10 Million Lawsuit Against Insurance Companies After Canceling Tour Due to Hospitalization

Kanye West filed a $10 million lawsuit on Tuesday against multiple syndicates of insurance marketplace Lloyd's of London, alleging that they have not paid out on a claim filed by West's company, Very Good Touring, Inc., after the rapper scrapped several planned performance dates on his Saint Pablo Tour.

According to court documents obtained by ET, West's company obtained "non-appearance or cancellation" insurance before the tour began. When West was hospitalized in November 2016, the remaining dates on his tour were cancelled, and his company submitted a claim.

According to the lawsuit, Very Good Touring, Inc., alleges that the cancellations were due to a "debilitating medical condition."

MORE: Kanye West's Difficult 2016: A Timeline From 'Life of Pablo' to Kim Kardashian's Robbery to His Breakdown

The documents state that the insurance syndicates responsible for covering the claim "have neither paid on the multimillion dollar claim nor denied the claim," more than eight months later.

"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," the documents state.

According to the suit, the insurers have allegedly implied that West'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."

WATCH: Kanye West 911 Call Released: 'I Think He's Definitely Going to Need to Be Hospitalized'

The Saint Pablo tour was originally planned for 38 shows in 2016, between Aug. 12 and Nov. 2. West performed for most of his scheduled engagements, but had to cancel two shows when his wife, Kim Kardashian, was robbed at gunpoint in her Paris hotel room on Oct. 2.

West announced that he would add extra shows to the successful tour to accommodate fans. However, during what Very Good Tours referred to as "Leg 2" of the tour, West's behavior was "strained, confused and erratic," leading to artist not being able to finish a show in Sacramento on Nov. 19.

"By the following day… Kanye's medical condition showed no sign of improvement, prompting the decision by all concerned to cancel the show scheduled at the Los Angeles Forum that evening, and to cancel the entire balance of the Tour," the documents state. "As a result of his serious, debilitating medical condition, Kanye was hospitalized at the UCLA Neuropsychiatic Hospital Center on Nov. 21, 2016.

West's suit alleges that the rapper's hospitalization was not seen by insurers as sufficient grounds to cover their claim, and they proceeded to hire a lawyer.

WATCH: Kanye West Urged to 'Take a Step Back From Work' After Hospitalization

"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," the documents state. 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 suit states that insurers forced West to prove the legitimacy of his psychological breakdown while in the hospital.

"While Kanye was still under medical care for his disabling condition, the Defendant syndicates demanded that Kanye submit to an immediate [independent medical examination," the suit states. "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."

WATCH: Kanye West ‘Happy to Finally Be Back Home’ With Kids and Kim Kardashian After Hospitalization

"As demanded by the insurers, Kanye was also subsequently presented for an examination under oath ('EUO'), and at least 11 other persons affiliated with Kanye and Very Good were similarly presented for EUOs," the documents continued.

Despite this, they allege that the insurers have continued to stall when it comes to covering their claim, and have failed to give them an answer as to their judgement on their responsibility. However, they have allegedly "suggested they would be amendable to compromising the claim, something Very Good refuses to do."

West's lawyer, Howard E. King, stated in the document that they have been forced to file a suit alleging breach of contract due to the insurers' failure to adequately meet their financial obligations.

WATCH: Kanye West Insists He's Not Part of the Illuminati

"Performing artists who pay handsomely to insurance companies within the Lloyd's of London marketplace to obtain show tour 'non-appearance or cancellation' insurance should take note of the lesson to be learned from this lawsuit: Lloyd's companies enjoy collecting bounteous premiums; they don't enjoy paying claims, no matter how legitimate," King wrote in the suit.

"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," he added. "The artists think they they're buying peace of mind. The insurers know they're just selling a ticket to the courthouse."

Check out the video below for more on West's hospitalization last year.

SHARE ON FACEBOOK SHARE SHARE ON TWITTER TWEET