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Thursday, 03 August 2017 00:00

Even celebrities like, Kanye West face problems when dealing with their insurance companies.

Written by Jonathan Druckman

Kanye West and his touring company Very Good Touring, Inc. have filed a $10 million-dollar lawsuit against his insurer after the company refused to pay his claims regarding his cancelled tour.

It has been almost a year since Kanye West cancelled his Saint Pablo tour that made national headlines in 2016. Circulating amongst the tabloids were reports of a serious mental breakdown that required hospitalization and even reports of marriage trouble with celebrity wife, Kim Kardashian. Now, Kanye and his touring company are still seeking to recover the insurance payments that resulted from his mental breakdown. The insurance company, Lloyd’s of London, reportedly hasn’t paid a single penny. The policy was supposed to cover any cancellation or non-appearance fees. The lawsuit was filed in Los Angeles on Tuesday, August 1.

The Insurance Company has yet to provide any indication of why they failed to pay. The Ins. Company alleges that Kanye’s alleged marijuana use provides a defense to the lawsuit. Kanye’s primary care doctor has issued sworn testimony that Kanye had suffered a mental breakdown that prevented him from performing. The complaint also claims that Lloyd’s of London was seeking to obtain under oath testimony from 11 members of Kanye’s main entourage despite the testimony from his doctor.

The lawsuit against the insurance company provides: “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.” In many ways, even a celebrity like Mr. West faces problems when dealing with insurance companies who just do not want to pay for legitimate claims made on policies that they have collected premiums on. It is important that you know your rights when dealing with an insurance company to make sure you get the compensation that you deserve.

Kanye’s lawsuit further adds that the insurer’s actions constitute a breach of contract and a breach of good faith and fair dealings. Kanye’s lawyer Howard King added this: “Performing artists who pay handsomely to insurance companies . . . should take note . . . Lloyd’s companies enjoy collecting bounteous premiums; they don’t enjoy paying claims, no matter how legitimate.”

If you have been hurt in an accident, you want an experienced trial lawyer. Often times, it is only after a lawsuit has been filed against the company, will the door for negotiations even begin. Now that Mr. West and Very Good Touring have filed suit, it will be interesting to follow how the insurance company reacts. One can only speculate that for the ten month since Kanye cancelled his tour, he has been trying to reach an agreement with the insurance company to resolve the claim. Unfortunately, his experience is rather common in today’s world. Call Druckman & Hernandez at 908-353-5850 if you have been injured, and PROTECT YOUR RIGHTS.

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