Kanye Countersued Over Canceled Tour, Drug & Alcohol Policy Cited

By Kelly Burch 09/01/17

Lloyd's of London says the rapper's team have "delayed, hindered, stalled and or refused to provide information" for their investigation into the claim.

Kanye West

Last November, rapper Kanye West canceled the remainder of his Saint Pablo tour dates and checked into UCLA Medical Center, reportedly suffering from temporary psychosis.

Now the rapper’s mental health history has become the subject of a $10 million lawsuit and countersuit between him and insurance agency Lloyd's of London, which West says should be responsible for paying the insurance claim from the canceled tour dates. 

West and his company, Very Good Touring Inc., submitted a claim just two days after the rapper was hospitalized while he was still receiving psychological care at UCLA, according to court documents obtained by The Hollywood Reporter. Lloyd's of London began an investigation into the rapper’s mental health, since it was the cause of the canceled tour. Eight months later the insurer still has not paid out on the claim. 

That caused West to file a $10 million lawsuit in early August. 

Court documents allege that Lloyd’s of London has not “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.”

West’s lawsuit alleges that the insurer immediately launched an investigation designed to find any excuse not to pay the claim. 

"Almost immediately after the claim was submitted, [Lloyd’s of London] selected legal counsel to oversee the adjustment of the claim, instead of the more normal approach of retaining a non-lawyer insurance adjuster," West’s lawsuit states. "Immediately turning to legal counsel made it clear that [Lloyd’s of London’s] 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.”

While he was in the hospital, West underwent an independent medical examination and an examination under oath, both of which were initiated by the insurance company, according to his lawsuit. 

West’s lawsuit also alleges that the insurance company has leaked the rapper’s private medical information to the media. 

In a countersuit filed earlier this week, Lloyd’s of London denies West’s accusations and insinuates that it is not legally obligated to pay the claim because of West’s mental health history and possible marijuana use

"Underwriters’ investigation indicates substantial irregularities in Mr. West’s medical history,” according to court papers. The claim goes on to say that West and his company have not fully cooperated with the insurer's investigation. 

The countersuit claims that ”a preexisting psychological condition, possession of illegal drugs, prescription drugs not taken as medically prescribed, and the consumption of alcohol [rendered] the insured [Kanye West] unfit to perform.”

In the court paperwork, Lloyd’s of London representatives said they were leaving out the specific details of the investigation—including possible drug use—"in order to protect the privacy of Mr. West from public disclosure of details of his private life." 

They do say that the “insuring clause allegedly has not been triggered and is expressly excluded by conditions in the policy,” according to The Hollywood Reporter

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Kelly Burch writes about addiction and mental health issues, particularly as they affect families. Follow her on TwitterFacebook, and LinkedIn.