Kanye West Files Lawsuit Claiming Insurance Company Doesn't Believe His Breakdown

The Cancellation

West's first leg of the Saint Pablo tour went off mostly fine. It was a huge success financially and critically, and the only issues came when Kardashian was robbed in Paris. West walked off stage when he heard the news and proceeded to cancel two shows. But overall, the run was a success.

A second leg was added, but it did not get far along before it was canceled.

West's long rants, a staple of his shows in recent years, became more erratic. He went on rants supporting Donald Trump, which drew loads of criticism from fans. He then went on another long spiel, bashing his friends Beyonce and Jay-Z. That rant was blown up all across social media and surely led to some backstage drama.

It was after that incident that West was hospitalized for mental health issues. The remaining Saint Pablo dates were cancelled.

The Insurance Investigation

With the dates canceled due to a health scare, Lloyd's of London would presumably be forced to pay a settlement to West. The company quickly started to investigate the insurance claim. This is where West's camp alleges things started to not add up, as claimed in the documents published by THR.

"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 lawsuit reads.

"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 lawsuit adds.

The company then forced West to be independently evaluated while he was still hospitalized. Despite the doctor siding in West's favor, the insurer still refused to pay out the claim.

"While Kanye was still under medical care for his disabling condition, the Defendant syndicates demanded that Kanye submit to an immediate IME (independent medical evaluation)," the suit reads. "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 Lawsuit

West's legal team then jumped into action, claiming that the insurer is trying to pin West's hospitalization on marijuana use.

"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," the complaint reads.

"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," the complaint continues.

Howard King, West's lawyer, also took the opportunity to warn other industry professionals to avoid Lloyd's of London. He claims the company never had any intention of paying out the claim. He alleges they always planned on taking the claim to court, hoping to get out of the payment or reach a lesser settlement.

"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 said.

"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," he added.

The Claim of Leaks

That isn't the only shady practice West's legal team is accusing the insurer of doing.

Lloyd's of London is also being accused of planting false news stories in the media about the reason for West's hospitalization. It's alleged this was done to weaken West's claim. It's said this practice directly violates a non-disclosure agreement between the two parties.

"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," the lawsuit says.

Lloyd's of London has not yet responded to the lawsuit.