Kanye West

Kanye West

*Kanye West has filed a $10 million lawsuit against various syndicates of insurer Lloyd’s of London, claiming they are stalling on paying out claims stemming from his cancelled tour due to a mental breakdown.

According to The Hollywood Reporter, a loss claim was submitted just two days after West checked himself into the UCLA Neuropsychiatric Hospital Center around Thanksgiving, but he and his company — Very Good Touring, Inc. — have yet to be paid more than eight months later, according to the suit.

“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,” states a complaint filed Tuesday in California federal court. “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.”

West’s court papers reveal the extent to which he has been attempting to convince the insurers that his mental breakdown was indeed real.

“While Kanye was still under medical care for his disabling condition, the Defendant syndicates demanded that Kanye submit to an immediate IME,” states court papers, referring to an independent medical examination. “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.”

West’s lawsuit alleges breach of contract and breach of good faith and fair dealing against the various entities, including Cathedral Syndicate.

As West’s lawyer Howard King writes, “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. 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 they’re buying peace of mind. The insurers know they’re just selling a ticket to the courthouse.”