Lady Gaga's Concert Promoters Sue Insurer Over Concert Cancellation
Posted by Joseph Lee on 03.06.2013
Live Nation claims damage was done...
A legal dispute has occurred over Lady Gaga's cancellation of a concert in Indonesia, according to The Hollywood Reporter. This comes after Gaga had to back out of the rest of her Born This way Ball tour thanks to hip surgery, which is estimated to cost $25 million.
The Indonesia show was set to happen in Jarkata last year on June 3. Gaga backed out after several Islamic and other groups began to protest. Now Live Nation LGTours says it suffered damage. Live Nation, Mermaid Touring and The Atom Factory are now suing a Lloyds of London affiliate for not going along with a "Terrorism Policy," accusing the defendant of "despicable conduct that subjected Plaintiffs to cruel and unjust hardship in conscious disregard of the Plaintiffs rights... with the intent to vex, injure or annoy the Plaintiffs, such as to constitute oppression, fraud or malice..."
Many local papers covered the threats before the scheduled concert. The Jarkata Globe reported that the "hardline Islamic Defenders Front (FPI) said it would dispatch 30,000 of its members to prevent Gaga from entering Jakarta." The Australian reported that a spokesperson for the group posted a photo on Facebook of a man in a turban and sunglasses, holding a $50 ticket to the concert. The caption read: "We have gotten Lady Gaga tickets. Not to watch but for us to enter... Our target is to stop the concert."
Local police couldn't guarantee the safety of Gaga, so the concert was canceled "to prevent bodily injury and property damage and to protect the lives and safety of Lady Gaga, all members of the Born This Way Tour, and the public."
Live Nation then attempted to collect its "Terrorism Insurance" policy which they paid a substantial premium to get. The policy said that indemnification for the "ascertained net loss" for cancellations due to "the sole and direct result of Terrorism and/or Sabotage or Threat." The lawsuit says that Beasley Syndicate 623 at Lloyds of London denied coverage "based on language and purported conditions that are not contained in The Terrorism Policies."
Live Nation wants $75,000 of Ascertained Net Loss for breach of contract and breach of the implied good faith and fair dealing, along with other damages.