When Kanye West Sued Several Insurance Companies For $10M Over Delayed Payments

Kanye West canceled his highly successful Saint Pablo tour abruptly in 2016. He cited mental health issues and was hospitalized in LA for psychiatric evaluation after he displayed erratic behavior. Eight months after the incident, West filed a $10 million lawsuit against multiple insurers for allegedly delaying payment of a "multi-million dollar claim" related to the postponed shows.

According to court documents obtained by People magazine, Lloyd's of London insurance business syndicates were sued by the rapper's company, Very Good Touring, Inc. In the court files, the Donda rapper claimed that the insurance companies had forced him to go to considerable measures to demonstrate the validity of his mental illness.

As per The Hollywood Reporter, Ye's complaint stated, “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 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 papers also described West’s behavior as "strained, confused, and erratic” at his Nov. 19 concert and that his condition “showed no sign of improvement” the next day, which prompted the decision by all involved to cancel the LA show and the "entire balance of the Tour.” However, that wasn’t good enough for the insurance companies, according to the suit.

“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...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.” 

West was admitted to UCLA Neuropsychiatric Hospital Center for eight days, according to the court document, and was then placed "under full-time care and supervision." "While Kanye was still under medical care for his disabling condition, the Defendant syndicates demanded that Kanye submit to an immediate [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.”

In the documents, West further claimed that he was brought in for an oath-taking test along with "at least seven other persons affiliated" with him and his business. At the time, a source close to the controversial rapper revealed that Ye was 'exhausted' and dealing with sleep deprivation. “He went to the hospital at will under the advice of his physician.”