LOS ANGELES – Concert promoter Live Nation has sued syndicates of insurer Lloyd’s of London for their "despicable conduct" in refusing to cover losses stemming from a performance by Lady Gaga in Indonesia that was canceled last year after the pop star received threats from an Islamic terrorist group.
In the suit, filed in federal court in Los Angeles on March 1, a Live Nation Entertainment Inc. subsidiary cited a "substantial premium" it paid for terrorism insurance, which covered the period from April 19, 2012, through March 17, 2013.
"The Plaintiffs have suffered significant damages as a result of the cancellation of the Lady Gaga concert in Jakarta, Indonesia, because of threats of violence, bodily injury and damage directed against Lady Gaga and others for political, religious, ideological or similar purposes," the complaint says. "The Insurers’ denial of coverage under The Terrorism Policies was unreasonable, without proper cause and in bad faith."
Lady Gaga, whose real name is Stefani Joanne Angelina Germanotta, was scheduled to perform the concert in Jakarta on June 3, 2012, but, starting on May 14, Islamic extremists threatened to block her entrance into the city or disrupt the show. In particular, a group called Islamic Defenders Front said it would dispatch 30,000 of its members to block Lady Gaga from entering Jakarta.
Local and national police raised concerns that they could not provide the security needed to protect the singer. The show was canceled on May 17.
The suit, for breach of contract, was filed against three Lloyd’s of London syndicates by concert promoter Live Nation LGTours, based in Beverly Hills, Calif.; professional services firm Mermaid Touring Inc. of Los Angeles; and The Atom Factory, an artist management company in Los Angeles. The suit, which seeks unspecified punitive damages, claims that the denial of coverage was "despicable conduct" in "conscious disregard of the Plaintiffs’ rights and with the intent to vex, injure or annoy the Plaintiffs."
Live Nation attorney Paul Langer, a partner at Proskauer Rose in Chicago, declined to comment. A Lloyd’s of London spokesman said the market does not comment on individual policies or claims but issued a statement: "The Lloyd’s insurance market always seeks to settle valid claims as quickly as possible."
The canceled concert was part of Lady Gaga’s global "Born This Way" tour. On Feb. 13, the singer canceled the remaining concerts on the tour—all in the United States—due to an injured hip.
@|Amanda Bronstad a reporter at The National Law Journal, an affiliate, can be contacted at firstname.lastname@example.org.