Kanye West Lloyds London Countersuit

Case 2:17-cv-05693-E Document 15 Filed 08/29/17 Page 1 of 38 Page ID #:70
1 P. K. SCHRIEFFER LLP
Paul K. Schrieffer, Esq. (CSB# 151358)
2 pks@pksllp.com
Wayne H. Hammack, Esq. (CSB# 202709)
3 whh@pksllp.com
100 North Barranca Street, Suite 1100
4
West Covina, California 91791
5
Telephone: (626) 373-2444
Facsimile: (626) 974-8403
6
Attorneys for Defendants CATHEDRAL SYNDICATE: 2010, a.k.a.
7
CATHEDRAL SYNDICATE MMX, AT LLOYDS OF LONDON, a foreign
company; LIBERTY SYNDICATE 4472 AT LLOYDS OF LONDON, a foreign
8
company; XL CATLIN SYNDICATE 2003 OF LLOYDS OF LONDON, a
foreign company; MARKEL SYNDICATE 3000 OF LLOYDS OF LONDON, a
9
foreign company; ALLIANZ GLOBAL CORPORATE & SPECIALTY SE, a
foreign company (erroneously sued as ALLIANZ SYNDICATE OF LLOYDS
10
OF LONDON, a foreign company)
11
12
UNITED STATES DISTRICT COURT
13
CENTRAL DISTRICT OF CALIFORNIA
14 VERY GOOD TOURING, INC., ) CASE NO. 2:17-cv-05693

)
15
Plaintiff, ) [Assigned to the Hon. Charles F. Eick,
) United States Magistrate Judge,
16 ) Courtroom 750]
vs. )
17 ) ANSWER AND COUNTERCLAIM
CATHEDRAL SYNDICATE: 2010, ) FOR DECLARATORY RELIEF OF
18 a.k.a. CATHEDRAL SYNDICATE ) DEFENDANTS AND
MMX, AT LLOYDS OF ) COUNTERCLAIMANTS
19
LONDON, a foreign company; ) CATHEDRAL SYNDICATE: 2010,
) a.k.a. CATHEDRAL SYNDICATE
20 LIBERTY SYNDICATE 4472 AT ) MMX, AT LLOYDS OF LONDON,
LLOYDS OF LONDON, a foreign ) a foreign company; LIBERTY
21 company; XL CATLIN ) SYNDICATE 4472 AT LLOYDS OF
SYNDICATE 2003 OF LLOYDS ) LONDON, a foreign company; XL
22 OF LONDON, a foreign company; )) CATLIN SYNDICATE 2003 OF
MARKEL SYNDICATE 3000 OF LLOYDS OF LONDON, a foreign
23 ) company; MARKEL SYNDICATE
LLOYDS OF LONDON, a foreign ) 3000 OF LLOYDS OF LONDON, a
24 company; ALLIANZ SYNDICATE ) foreign company; ALLIANZ
OF LLOYDS OF LONDON, a ) GLOBAL CORPORATE &
25 foreign company, ) SPECIALTY SE, a foreign company
)
26
Defendants. ) DEMAND FOR JURY TRIAL
)
27 )
) Complaint Filed: August 1, 2017
28 ) Trial Date: N/A
)
1
DEFENDANTS/COUNTERCLAIMANTS ANSWER AND
COUNTERCLAIM FOR DECLARATORY RELIEF
CATHEDRAL SYNDICATE: 2010, )

1
a.k.a. CATHEDRAL SYNDICATE )
MMX, AT LLOYDS OF )
2
LONDON, a foreign company; )
)
3 LIBERTY SYNDICATE 4472 AT )
LLOYDS OF LONDON, a foreign )
4 company; XL CATLIN )
SYNDICATE 2003 OF LLOYDS )
5
OF LONDON, a foreign company; )
MARKEL SYNDICATE 3000 OF )
6 )
LLOYDS OF LONDON, a foreign )
7 company; ALLIANZ GLOBAL )
CORPORATE & SPECIALTY SE, a )
8
foreign company, )
)
9
Counterclaimants, )
)
10 )
vs. )
11 )
VERY GOOD TOURING, INC. a )
12
California Corporation; DOES 1-75, ))
13 inclusive, )
)
14 Counterdefendants. )
)
15 )
16 Defendants and Counterclaimants CATHEDRAL SYNDICATE: 2010,
17 a.k.a. CATHEDRAL SYNDICATE MMX, AT LLOYDS OF LONDON, a
18 foreign company; LIBERTY SYNDICATE 4472 AT LLOYDS OF LONDON, a
19 foreign company; XL CATLIN SYNDICATE 2003 OF LLOYDS OF LONDON,
20 a foreign company; MARKEL SYNDICATE 3000 OF LLOYDS OF LONDON,
21 a foreign company; ALLIANZ GLOBAL CORPORATE & SPECIALTY SE, a
22 foreign company (collectively, Defendants or Counterclaimants), by and
23 through their undersigned counsel of record, hereby respond to the Complaint
24 (Complaint) of Plaintiff, VERY GOOD TOURING, INC., with the following
25 Answer, Defenses, Counterclaim for Declaratory Relief, and Demand for Jury
26 Trial. For the convenience of a reader of Defendants Answer, Defendants have
27 numbered the paragraphs to correspond to the numbered paragraphs of the
28 Complaint, and have used the headings used by Plaintiff in the Complaint, without
2
1 admitting the truth of the timeline expressed in the paragraphs and without
2 admitting the truth of the phrasing or substance of the headings. Except as
3 expressly admitted below, Defendants deny each and every allegation and
4 mischaracterization in Plaintiffs Complaint.
5 I. ANSWER TO COMPLAINT
6 INTRODUCTION
7 1. Defendants deny the allegations in Paragraph 1 of the Complaint.
8 2. Defendants admit the allegations in Paragraph 2 of the Complaint that
9 Very Good Touring submitted a claim to Defendants on November 23, 2016 over
10 the cancellation of the remaining shows in Kanye Wests Saint Pablo Tour.
11 Defendants admit that the claim has not been paid or denied. Defendants deny
12 that they have not provided an explanation as to why they have not paid the claim.
13 Defendants deny that they have implied that Kanye Wests use of marijuana
14 provides the sole basis to deny the claim. Defendants (and Plaintiff) are, or were,
15 bound by a non-disclosure agreement precluding Defendants from elaborating
16 further at this time, publicly, regarding the basis for non-payment of the claim,
17 notwithstanding Plaintiffs reference to use of marijuana in its complaint. This
18 will be the subject of further direction from the Court. As a result, Defendants can
19 only deny the remaining allegations in Paragraph 2 of the Complaint without
20 further explanation. Except as expressly admitted herein, Defendants deny any
21 remaining allegations in paragraph 2.
22 3. Defendants deny the allegations in the first sentence of paragraph 3 of
23 the complaint, which mischaracterize the discussions between the parties over the
24 dates identified. Defendants deny the allegations in the second sentence of
25 paragraph 3 of the complaint. Defendants deny the allegation that Plaintiff was
26 left with no choice but to file this action. Defendants deny the allegations in the
27 fourth sentence of paragraph 3 which states as follows, As a parting shot, in a
28 move intended to intimidate and dissuade Plaintiff from filing suit, Plaintiff is
3
1 informed and believes, the insurers and/or their agents purposely and maliciously
2 caused to be disseminated to news outlets, privileged, private and personal
3 information (Confidential Information) regarding Kanye and the dialogue
4 between Very Good and the insurers. Plaintiffs complaint is the first and only
5 time during since the claim was made that Plaintiff has ever suggested such has
6 occurred, and it is alleged on information and belief. Not surprisingly, Plaintiff
7 offers no specifics regarding this allegation, which Defendants deny 1. Defendants
8 similarly deny the remaining sentences of paragraph 3 of the complaint which
9 related to alleged planting of confidential information, the first suggestion of
10 which appeared in the complaint. Except as expressly admitted herein,
11 Defendants deny any remaining allegations in paragraph 3.
12 4. Defendants admit the allegations in paragraph 4, on information and
13 belief, regarding three other insurers with substantially smaller shares of various
14 risks which, Defendants have been informed, reached settlements with Plaintiff.
15 Except as expressly admitted herein, Defendants deny any remaining allegations
16 in paragraph 4.
17 THE PARTIES
18 5. With the exception of the correction of the identity of ALLIANZ
19 GLOBAL CORPORATE & SPECIALTY SE, a foreign company in place of the
20 erroneously sued ALLIANZ SYNDICATE OF LLOYDS OF LONDON, a
21 foreign company, Defendants admit the remaining allegations in paragraph 5 of
22 the Complaint.
23 6. Defendants admit the allegations in paragraph 6 of the Complaint.
24 7. Defendants admit the first sentence of paragraph 7 of the Complaint.
25 Defendants deny the second sentence of paragraph 7 of the Complaint, including
26 the suggestion that they were asked to disclose that information or had an
27
28 1
Indeed, contrary to plaintiffs complaint, reports in the press since the filing of the Complaint have cited family
insiders and a Kanye insider as the sources for leaked information.
4
1 obligation to do so in connection with their investigation into Plaintiffs claim.

3 in paragraph 7.
4 JURISDICTION AND VENUE
5 8. With respect to paragraph 8 of the Complaint, Defendants reserve the
6 right to challenge whether there is sufficient and/or complete diversity jurisdiction
7 under 28 U.S.C. 1332.
8 9. Defendants admit that they issued insurance policies described in the
9 first sentence of paragraph 9 of the Complaint. Defendants admit that Very
10 Goods broker (and therefore its agent) obtained the policies for Very Good
11 Touring. Defendants admit that the policies insure an entity having its principal
12 place of business within this judicial district, and that California law applies to the
13 interpretation of the contracts. Defendants admit that there is personal jurisdiction
14 over Defendants. Except as expressly admitted herein, Defendants deny any
16 10. Defendants admit that venue is proper in this District under 28 U.S.C.
17 1391 as stated in paragraph 10 of the Complaint. .
19 THE SAINT PABLO TOUR, RESCHEDULED SHOWS,
20 AND THE TOUR CANCELLATION
22 Answering the second sentence of paragraph 12 of the Complaint, defendants are
23 without sufficient knowledge or information to form a belief as to the truth of the
24 allegations contained in said sentence, and on that basis deny each and every
25 allegation contained therein. Answering the third sentence of paragraph 12 of the
26 Complaint, Defendants admit that the statement set forth in the Complaint is
27 among the reasons that an insured generally will obtain non-appearance and
28 cancellation insurance. Except as expressly admitted herein, Defendants deny any
5

2 13. Answering the allegations in paragraph 13 of the Complaint,
3 Defendants admit that the insureds broker (and therefore its agent), contacted the
4 Lloyds market regarding placement of the subject Policies, obtained a premium
5 quote, and thereafter entered into the Leg 1 Policy. Except as expressly
6 admitted herein, Defendants deny any remaining allegations in paragraph 13.
8 Defendants admit that two of the shows in early October 2016 were cancelled
9 after Kanye Wests wife, Kim Kardashian-West, was the victim of a reported
10 robbery in Paris, France. Defendants admit that those two shows were
11 rescheduled for the subsequent Leg 2 of the Tour. Except as expressly admitted
12 herein, Defendants deny any remaining allegations in paragraph 14.
15 Defendants admit that the November 3, 2016 date was cancelled following a
16 reported throat illness, and that the show was rescheduled to November 20, 2016.
18 in paragraph 16.
20 Defendants admit that additional dates were arranged for Leg 2 of the Tour, to
21 commence November 16, 2016 and to end on New Years Eve, 2016.
22 Underwriters admit that the insureds broker (and therefore its agent), contacted
23 Defendants, provided a schedule of event dates, was quoted a premium, paid the
24 premium, and as a result the parties entered into the second of the two policies (the
25 Leg 2 Policy). Except as expressly admitted herein, Defendants deny any
27 18. Defendants admit, on information and belief, the allegations of the
28 first sentence of paragraph 18 of the Complaint. Defendants admit the second
6
1 sentence of paragraph 18 of the Complaint. Defendants lack sufficient

2 information to form a belief as to the truth of the allegation in the last sentence of
3 paragraph 18 of the Complaint and on that basis deny. Except as expressly
4 admitted herein, Defendants deny any remaining allegations in paragraph 18.
5 19. Defendants admit that on November 20, 2016, Defendants are
6 informed and believe based upon their investigation that the insured decided to
7 cancel the show scheduled for that evening at the Los Angeles Forum. Defendants
8 deny that, all concerned were involved in the decision to cancel as Defendants
9 were not consulted in any way in advance of the decision to cancel. Similarly,
10 defendants deny that, all concerned were involved in the decision to cancel the
11 remainder of the Tour, which was cancelled without prior consultation with
12 Defendants. Defendants lack sufficient information to form a belief as to the truth
13 of the allegations in the last sentence of paragraph 19 and on that basis deny.
15 in paragraph 19.
16 20. Defendants admit that Kanye West was hospitalized at UCLA
17 Neuropsychiatric Hospital Center on November 21, 2016. Except as expressly
18 admitted, Defendants deny the allegations in paragraph 20.
20 22. Defendants admit that Kanye West remained hospitalized at UCLA
21 for 8 days, and was released on November 29, 2016, all of which and other
22 medical issues are placed in issue by Plaintiff. Except as expressly admitted,
23 Defendants deny the remaining allegations in paragraph 22, as Defendants lack
24 sufficient information to form a belief as to the truth of the allegations.
25 23. Defendants lack sufficient information to form a belief as to the truth
26 of the allegations in the first sentence of paragraph 23, and on that basis, deny.
27 Defendants are limited by the agreed upon nondisclosure agreement as to what can
28 be publicly disclosed in this answer regarding Kanye Wests treating physicians
7
1 testimony concerning Mr. Wests condition and the reasons for the cancellation,
2 subject to a protective order or other court order permitting disclosure of the same,
3 for reasons to be addressed with the Court. Defendants admit the allegation in the
4 second sentence of paragraph 23 that Kanye Wests treating physician testified
5 that Kanye West could not resume touring as of the date of that doctors
6 examination under oath. Defendants admit that the doctor who performed the
7 Independent Medical Examination confirmed that Kanye West was not in a
8 condition to resume touring. Subject to a protective order or court order
9 permitting the disclosure of additional medical information placed at issue by
10 Plaintiffs complaint, Defendants cannot respond any further to these allegations
11 in this answer. Except as expressly admitted, Defendants deny the remaining
12 allegations of paragraph 23 of the Complaint.
13 24. Defendants deny the allegations in paragraph 24 of the Complaint.
15 Defendants admit that they requested, as is their right pursuant to the terms of the
16 Insurance Policies, that Kanye West submit to an Independent Medical
17 Examination, and further admit that the doctor who performed the Independent
18 Medical Examination stated that Kanye West was not in condition to resume
19 touring. Defendants admit that Kanye West testified, under penalty of perjury, in
20 an examination under oath, as did at least eleven other persons affiliated with
21 Kanye West and the Plaintiff. Subject to a protective order or court order
22 permitting the disclosure of additional medical information placed at issue by
23 Plaintiffs complaint, Defendants cannot respond any further to these allegations.
24 Except as expressly admitted above, Defendants deny the remaining allegations in
25 paragraph 25 of the Complaint.
26 26. Defendants admit that Very Good Touring provided documentation
27 regarding the amount of the claim, including its calculation of the amount due.
28 Except as expressly admitted, Defendants deny the remaining allegations in
8
1 paragraph 26 of the Complaint.

3 Defendants deny the second sentence of paragraph 27 of the Complaint.
4 Defendants admit that they have attempted to work with Plaintiff and its lawyers
5 who were involved early on in the claim to resolve the claim given the evidence
6 obtained during Underwriters investigation. Defendants admit that the insured
7 has refused to compromise the claim. Except as expressly admitted herein,
8 Defendants deny any remaining allegations in paragraph 27.
9 THE INSURANCE POLICIES
12 30. Defendants admit that the selected portions of the Policies are
13 properly quoted in paragraph 30 of the Complaint. Defendants deny that the
14 paragraph contains a complete summary of the terms of the policies. As has been
15 repeatedly referenced in communications to Plaintiffs representatives, additional
16 relevant Policy Provisions include the following:
17 The Policy is subject to the following Conditions Precedent to liability:
18
1.1 The Underwriters will indemnify the Insured for their
19 Ascertained Net Loss arising from the Insured Event(s) being
necessarily Cancelled, Abandoned, Postponed, Interrupted,
20 Curtailed or Relocated.
21 Provided that:
22 (1.1.1) the necessary Cancellation, Abandonment,
Postponement, Interruption, Curtailment or
23 Relocation is the sole and direct result of one or
more of the Perils, as more fully described in 3
24 below; and
25
(1.1.2) such Peril is stated in the Schedule to be insured; and
26
(1.1.3) the cause of such Peril is beyond the control of:
27
28 (i) the Insured and

(ii) each and every Insured Person; and
9
(iii) in respect of 3.4 below the Insured, the Insured

1 Person and each and every other Participant.
2 (1.1.4) the Peril which is the sole and direct cause of the
necessary Cancellation, Abandonment,
3 Postponement, Interruption, Curtailment or
4
Relocation occurs during the Period of Insurance.
5 5. CONDITIONS PRECEDENT
6
It is a condition precedent to any liability of the Underwriters that
7
8
5.1 the Insured has:
9 5.1.1 truthfully declared all Material Facts having
made all reasonable inquiries, including of any Insured
10 Person, to establish those facts;
11 5.1.2 established to its best knowledge and belief after
making reasonable inquiry that no Insured Person has
12 any physical or psychological medical condition or is
undergoing any treatment, medical or otherwise, other
13 than those disclosed in writing to the Underwriters prior
to the inception of this Insurance and agreed by them in
14 writing; and
15 5.1.3 declared that all information contained in any
completed Proposal Form and/or supplied to support
16
such Proposal Form or other application for this
17
Insurance is in all respects true and complete and
unchanged at the inception of this Insurance. Further
18
the Insured agrees that such information is material to
the Underwriters acceptance of this risk, and forms the
19 basis of this Insurance and is incorporated herein.
20 5.2 each Insured Person is in all respects fit and able to fulfil the
commitments Insured herein;
21
5.3 coverage provided hereunder for any pre-existing physical or
22 psychological medical condition disclosed to and accepted by
the Underwriters pursuant to Section 5.1.2, shall cease from
23 the beginning of this Insurance if the Insured Person fails to
continue to follow any prescribed regime, medical or
24 otherwise, essential to the Insured Persons well-being during
the Period of Insurance;
25
26 5.4 the Insured has:

27 5.4.1 no knowledge at the inception of this insurance,
of any undisclosed matter, fact or circumstance, actual
28 or threatened, that increases or could increase the
possibility of a loss under this insurance;
10
1 5.4.2 confirmed that no Insured Person has knowledge

at inception, of any undisclosed matter, fact or
2
circumstance, actual or threatened, that increases or
3
could increase the possibility of a loss under this
Insurance.
4
5.5 the Insured will at all times do all things necessary to avoid,
5 diminish or otherwise mitigate a loss under this insurance,
including where appropriate rescheduling of the Insured
6 Event;
7 5.6 the Insured shall, in the event of any happening or
circumstance which could give rise to a claim, comply with
8 Section 9.
9
10 Furthermore, as Defendants have repeatedly explained to the Plaintiffs

11 representatives, additional relevant Policy Provisions include the following:
12 The Policies are subject to various General Conditions, inter alia, at clause
13 7 including:
14
7.10 Any fraud, concealment, intentional misstatement or negligent
15 statement relating to the information provided or in the
making of a claim shall entitle the Underwriters to refuse
16 payment of a claim or treat this Insurance as though it was
void from its inception.
17
7.11 The Insured shall observe and fulfil the terms and conditions
18 contained in this Policy or endorsed hereon.
19
...
20
7.13 The Insured shall maintain adequate records in connection
21 with the subject matter insured hereunder.
22 Furthermore, the Policies exclude coverage, at clause 8, as follows:
23
This Insurance does not cover any loss directly or indirectly arising out of,
24 contributed to by, or resulting from:

25
8.3 the non-appearance at an Insured Event of any Insured Person due
26 to:

27
(8.3.4) any pre-existing physical or psychological medical condition
28
known to the Insured or Insured Person unless disclosed in writing
11
to the Underwriters prior to the inception of this Insurance, and

1 otherwise agreed in writing by the Underwriters,

2
3
(8.3.7) the possession or use of illegal drugs by an Insured Person,
4
(8.3.8) the effects on an Insured Person of prescription drugs when not
taken as medically prescribed,
5
(8.3.9) the consumption of alcohol which renders and Insured Person(s)
6 unfit to perform contracted duties.
7 8.4 the Insureds or any Insured Persons lack of care, diligence or
prudent behavior, the result of which would increase the risk,
8 and/or likelihood of a loss, hereunder.
9 Finally, Underwriters admit that additional Relevant Policy Provisions
10
include the following under the Claims Procedure at Clause 9:
11
12
It is a condition precedent to any liability of the Underwriters that in the
event of any happening or circumstances which could give rise to a claim under
13
this Insurance, the Insured shall:
14 9.1 not misrepresent or conceal facts in the making of a claim.

15
...
16
17 (9.2.2) confirm the facts in writing as soon as possible, with as much

information and detail as available,
18
19 (9.2.3) forward immediately to the Underwriters or their representatives

20
any letter, writ or other document received in connection with any
claim made under this insurance,
21
22 (9.2.4) provide the Underwriters or their appointed representatives with:

23 a) all necessary assistance in a timely manner,
24
b) all required medical information,
c) all further information required,
25
d) all documentation and records necessary to establish and
assess the full amount of any indemnity that may be due
26 hereunder and copies or extracts as may be required,
27 (9.2.5) take all steps to minimize, avoid or otherwise mitigate any loss
hereunder,
28
12
1 (9.2.6) prove the loss to the satisfaction of the Underwriters,

...
2
3
9.3 as often as may be reasonably required submit to examination under
oath on all matters connected with a claim, by any person named by
4
the Underwriters at such reasonable time and place as may be
designated by the Underwriters or their representatives.
5
So far as is in its power the Insured shall cause its employees and all
6 other persons interested in the Insured Event, to comply with the
foregoing.
7
No such examination under oath or examination of books or
8 documents, nor any other act of the Underwriters or their
representatives in connection with any investigation hereunder, shall
9 be deemed a waiver of any defence which the Underwriters might
otherwise have. All such examinations and acts shall be deemed to
10 have been made or done without prejudice to the Underwriters
liability.
11
12
9.4 as soon as is practicable provide to the Underwriters or their
representatives a signed and sworn proof of loss, in such form as may
13
be required by the Underwriters, to substantiate the occurrence,
nature, cause and amount of loss claimed under this Insurance.
14
9.5 allow the Underwriters the right, if they so wish, to:
15
(9.5.1) take such steps as they deem necessary to prevent, mitigate or
16 minimize a loss.
...
17
(9.5.4) require independent medical examination of any Insured Person
18 who gives rise to a claim hereunder.
19 Except as expressly admitted herein, Defendants deny any remaining
20 allegations in paragraph 30.
21 COVERAGE UNDER THE INSURANCE POLICIES FOR
22 CANCELLATION AND ABANDONMENT
23 OF SHOWS, AND OF THE TOUR
27 34. In answer to paragraph 34 of the Complaint, Defendants deny each
28 and every allegation contained therein.
13

7 FIRST CAUSE OF ACTION
8 (Against Defendants for Breach of Contract)
9 38. Defendants admit that Plaintiff re-alleges the allegations of
10 paragraphs 1-37, and in answering this paragraph Underwriters incorporate by
11 reference the above with respect to paragraphs 1-37.
21 SECOND CAUSE OF ACTION
22 (Against Defendants for Breach Of the Implied Covenant
23 of Good Faith and Fair Dealings)
24 44. Defendants admit that Plaintiff realleges the allegations of paragraphs
25 1-43, and in answering this paragraph Underwriters incorporate by reference the
26 above with respect to paragraphs 1-43.
14

11 II. AFFIRMATIVE DEFENSES
12 FIRST AFFIRMATIVE DEFENSE
13 (Failure to Cooperate)
14 52. Plaintiff has failed to cooperate as required by the terms and
15 conditions of the policies and/or California law, including but not limited to, the
16 failure and refusal to provide information, documents and writings.
17 SECOND AFFIRMATIVE DEFENSE
18 (Waiver)
19 53. Plaintiff waived its right to any or all relief asserted in the Complaint.
20
21 THIRD AFFIRMATIVE DEFENSE

22 (Failure to Mitigate)
23 54. Any and all damages sustained by Plaintiff, if any, are or were the
24 direct and proximate result of its failure to mitigate damages, if any.
25 ///
26 ///
27 ///
28
15
1 FOURTH AFFIRMATIVE DEFENSE

2 (Unclean Hands)
3 55. The Complaint and each part thereof are barred or limited by
4 application of the doctrine of unclean hands as to the acts, omissions, statements
5 or conduct of Plaintiff and/or its agents or employees.
6 FIFTH AFFIRMATIVE DEFENSE
7 (Estoppel)
8 56. The Complaint and/or each part thereof are barred or limited by
9 application of the doctrine of estoppel based upon the circumstances and the acts,
10 omissions, statements or conduct of Plaintiff, upon which defendants relied to
11 their detriment.
12 SIXTH AFFIRMATIVE DEFENSE
13 (Consent)
14 57. The Complaint and/or each part thereof are barred or limited to the
15 extent that Plaintiff consented to any and all acts, omissions, statements or conduct
16 alleged against the Defendants, if any. Further, Plaintiff was on notice of the
17 terms and conditions of the subject insurance policy in a reasonable time relevant
18 to the facts and circumstances and was bound by the terms and conditions of the
19 subject insurance policy.
20 SEVENTH AFFIRMATIVE DEFENSE
21 (Misrepresentation or Failure to Provide Material Information)
22 58. The Complaint and/or each part thereof are barred or limited to the
23 extent Plaintiff and/or its representatives misrepresented material information or
24 omitted to provide material information to Defendants.
25 ///
26 ///
27 ///
28 ///
16
1 EIGHTH AFFIRMATIVE DEFENSE

2 (Good Faith of Defendants)
3 59. The conduct of these answering Defendants has at all times been in
4 good faith, with reason, and without malice, fraud or oppression, and further, in
5 conformance with California or other applicable law.
6 NINTH AFFIRMATIVE DEFENSE
7 (Genuine Dispute Doctrine)
8 60. To the extent there is a genuine dispute among the Plaintiff and
9 Defendants regarding the interpretation or enforcement of the policy, the
10 Defendants are not liable for breach of the implied covenant of good faith and fair
11 dealing.
12 TENTH AFFIRMATIVE DEFENSE
13 (Policy Provisions Preclude or Limit Coverage)
14 61. Plaintiff has no right to assert or maintain any claim against these
15 answering Defendants, in whole or in part, to the extent that the terms, definitions,
16 exclusions, conditions and/or limitations contained in any policy issued by
17 Defendants precludes or limits coverage for the claim for which Plaintiff seeks
18 coverage.
19 ELEVENTH AFFIRMATIVE DEFENSE
20 (Failure to Perform All Obligations)
21 62. Plaintiff has no right to assert or maintain any right against these
22 answering Defendants, to the extent that Plaintiff has failed to perform all of its
23 respective obligations under the insurance policy issued by Defendants.
24 TWELFTH AFFIRMATIVE DEFENSE
25 (Offset)
26 63. Plaintiffs damages, if any, are offset by any and all income to the
27 Plaintiff, including but not limited to, ticketing income, secondary ticketing
28
17
1 income, merchandising income, memorabilia and or its agreement(s) with its

2 promoter(s).
3 THIRTEENTH AFFIRMATIVE DEFENSE
4 (Laches)
5 64. The complaint and each part thereof is barred by the doctrine of
6 laches.
7 FOURTEENTH AFFIRMATIVE DEFENSE
8 (Ratification)
9 65. Plaintiff ratified the actions, omissions, statements or conduct of
10 Defendants, if any.
11 FIFTEENTH AFFIRMATIVE DEFENSE
12 (Excuse)
13 66. The actions, omissions, statements or conduct of Plaintiff, if any,
14 excuses the performance, if any, or breach, if any, Defendants.
15 SIXTEENTH AFFIRMATIVE DEFENSE
16 (Punitive Damages Unconstitutional)
17 67. Plaintiffs request for punitive damages violates the Fifth
18 Amendment and the Fourteenth Amendment and said claim is not recoverable in
19 this matter.
20 SEVENTEENTH AFFIRMATIVE DEFENSE
21 (Comparative Fault of Plaintiff)
22 68. Plaintiff did not conduct itself, and did not manage and/or conduct its
23 affairs in a reasonable manner, or as a reasonable person or entity would have
24 done in like or similar circumstances, and by reason of such conduct, Plaintiff
25 legally caused and/or contributed, in whole or in part, to its damages and losses, if
26 any.
27 ///
28 ///
18
1 EIGHTEENTH AFFIRMATIVE DEFENSE

2 (Comparative Negligence, Fault or Other
3 Legal Responsibility of Other Tortfeasors)
4 69. Should it be found that Defendants are liable in any manner for any
5 damages claimed by Plaintiff, which liability Defendants specifically deny, the
6 proportionate degree of negligence, fault, and/or legal responsibility of each and
7 every other person or entity must be determined and prorated and any judgment
8 which may be rendered against Defendants must be reduced not only by the
9 degree of negligence, fault or legal responsibility attributable to Plaintiff, but also
10 by the total of that degree of negligence, fault and/or other legal responsibility
11 found to exist as to other parties, persons and/or entities as well.
12 NINETEENTH AFFIRMATIVE DEFENSE
13 (Additional, Unknown Affirmative Defenses)
14 70. Defendants reserve their rights as permitted by law to assert
15 additional affirmative defenses and offsets.
16 III. COUNTERCLAIM
17 Defendants and Counterclaimants, CATHEDRAL SYNDICATE: 2010,
18 a.k.a. CATHEDRAL SYNDICATE MMX, AT LLOYDS OF LONDON, a
19 foreign company; LIBERTY SYNDICATE 4472 AT LLOYDS OF LONDON, a
20 foreign company; XL CATLIN SYNDICATE 2003 OF LLOYDS OF LONDON,
21 a foreign company; MARKEL SYNDICATE 3000 OF LLOYDS OF LONDON,
22 a foreign company; ALLIANZ GLOBAL CORPORATE & SPECIALTY SE, a
23 foreign company (collectively, Defendants, Counterclaimants, or
24 Underwriters) by and through their counsel of record and on information and
25 belief, hereby counterclaim against Plaintiff and Counter-Defendant VERY
26 GOOD TOURING, INC. (hereinafter VGT or Plaintiff) as follows:
27 ///
28 ///
19
1 INTRODUCTION
2 1. This is an insurance dispute between sophisticated parties to
3 cancellation, abandonment and non-appearance insurance Policies. Plaintiff was
4 represented by sophisticated insurance brokers in the placement of this policy and
5 in the presentation of the claim and was represented by legal counsel from
6 inception of the claim. Counterclaimants (Underwriters) seek a judicial
7 determination there is no coverage for any claims made by VGT for benefits under
8 Underwriters Policies Numbered B1333ECB160331335 (the Policies)
9 because of various terms, conditions and exclusions contained within the Policies,
10 including, but not limited to the following:
11 As is pertinent to this dispute, the Policies exclude coverage, inter alia, at
12 clause 8, as follows:
13
This Insurance does not cover any loss directly or indirectly arising
14 out of, contributed to by, or resulting from:

15
8.3 the non-appearance at an Insured Event of any Insured Person
16 due to:
17
18 (8.3.7) the possession or use of illegal drugs by an Insured
Person,
19
(8.3.8) the effects on an Insured Person of prescription drugs
20 when not taken as medically prescribed,
21
(8.3.9) the consumption of alcohol which renders and Insured
22
Person(s) unfit to perform contracted duties.
25
26 The claim made by VGT relates to the November 2016 cancellation of

27 twenty one performance dates of Kanye Wests Saint Pablo tour. In order to
28 protect the privacy of Mr. West from public disclosure of details of his private
20
1 life, the foregoing allegations omit references to the specific information obtained
2 by Underwriters in connection with the claim during their investigation and
3 Underwriters reference such facts only with sufficient specificity to apprise
4 Defendants of the claims asserted herein.
5 2. Underwriters issued the Policies to VGT with respect to a series of
6 shows to be performed by the Artist, Kanye West, for the period October 11, 2016
7 to January 1, 2017, which were part of Mr. Wests series of concerts known as the
8 Saint Pablo tour which was to include shows in North America between
9 November and December 31, 2016. The Insured under the Policy is Mr. Wests
10 touring company, VGT.
11 3. On or about November 21, 2016, Underwriters were informed that
12 Kanye West was being admitted to UCLA Medical Center (as has been widely
13 publicized in the press) and that the remainder of the tour would be cancelled.
14 4. Thereafter, VGT made a claim for coverage under the Policies. Since
15 that time, Underwriters have sought to obtain documents and other information
16 necessary to determine VGTs entitlement to coverage under the policy. The
17 parties now have an actual and present controversy regarding whether any
18 coverage is afforded under the Policies as more fully set forth below.
19 Underwriters investigation indicates substantial irregularities in Mr. Wests
20 medical history. Furthermore the insureds failure to cooperate in Underwriters
21 investigation is contrary to the duties of cooperation VGT agreed to as a condition
22 precedent to any obligation of Underwriters to pay any claim arising under the
23 Policies. Throughout Underwriters investigation, VGT and its legal, medical and
24 other agents and representatives have delayed, hindered, stalled and or refused to
25 provide information both relevant and necessary for Underwriters to complete
26 their investigation of the claim. Underwriters are informed and believe, and
27 thereon these same persons have willfully concealed and or misrepresented
28 relevant facts in an effort to thwart Underwriters investigation.
21
1 PARTIES
2 5. Counterclaimants are CATHEDRAL SYNDICATE: 2010, a.k.a.
3 CATHEDRAL SYNDICATE MMX, AT LLOYDS OF LONDON, a foreign
4 company; LIBERTY SYNDICATE 4472 AT LLOYDS OF LONDON, a foreign
5 company; XL CATLIN SYNDICATE 2003 OF LLOYDS OF LONDON, a
6 foreign company; MARKEL SYNDICATE 3000 OF LLOYDS OF LONDON, a
7 foreign company; ALLIANZ GLOBAL CORPORATE & SPECIALTY SE, a
8 foreign company, Subscribing to Cancellation, Abandonment and Non-
9 Appearance Policy Numbered B1333ECB160331 -- 335 (Underwriters).
10 Underwriters are authorized to and do issue insurance to California residents
11 through licensed surplus line brokers in accordance with the laws of the State of
12 California.
13 6. Underwriters are informed and believe and thereon allege that
14 Plaintiff VGT is a corporation existing and doing business pursuant to the laws of
15 the State of California and identified in the Policies at issue in this proceeding as
16 Very Good Touring, c/o Boulevard Management, 21731 Ventura Blvd., Suite 300,
17 Woodland Hills, CA 91364.
18 7. Underwriters are informed and believe and thereon allege that the
19 complaint is filed in the judicial district which is the principal place where
20 Plaintiff does business.
21 FACTUAL BACKGROUND AND GENERAL ALLEGATIONS
22 A. The Policies
23 8. In or about late-September/early-October 2016, VGT, by and through
24 its agent and insurance broker, sought insurance coverage from Underwriters for
25 21 shows which were added to Kanye Wests then ongoing Saint Pablo Tour.
26 Those additional 21 shows were scheduled to commence in North America on or
27 about November 17, 2016.
28
22
1 9. Thereafter, and in exchange for valuable consideration, Underwriters

2 issued Cancellation, Abandonment and Non-Appearance Policy Nos.
3 B1333ECB160331-335 (the Policies) to Very Good Touring c/o Boulevard
4 Management, effective 11 October 2016 to January 1, 2017.
5 10. The insurance was issued via several policies as a series of layers
6 with limits of indemnity (80% To Pay of the Guarantees) as follows:
7 Policy No. Limit of Indemnity
8 B1333ECB160331 $440,000
9 B1333ECB160332 $1,560,000
10 B1333ECB160333 $2,000,000
11 B1333ECB160334 $4,360,000
12 B1333ECB160335 $2,400,000
13 Total: $10,760,000
14 11. The Policies provide coverage for Insured Performance(s) or
15 Event(s) with respect to Kanye West for November 17, 2016 to December 31,
16 2016.
17 12. As has been widely discussed in the press, Kanye Wests November
18 20, 2016 show at the Forum in Los Angeles was cancelled. The following day,
19 the remainder of the tour was cancelled and Mr. West was admitted to UCLA
20 Medical Center.
21 13. The Policies provide under the insuring clause as follows:
22
1.1 The Underwriters will indemnify the Insured for their
23 Ascertained Net Loss arising from the Insured Event(s) being
24 Curtailed or Relocated.
25 Provided that:
26
(1.1.1) the necessary Cancellation, Abandonment,
27 Postponement, Interruption, Curtailment or
Relocation is the sole and direct result of one or
28 more of the Perils, as more fully described in 3
below; and
23
1 (1.1.2) such Peril is stated in the Schedule to be insured; and

2
3
(iv) the Insured and
4
(v) each and every Insured Person; and
(vi) in respect of 3.4 below the Insured, the Insured
6 (1.1.4) the Peril which is the sole and direct cause of the necessary
Cancellation, Abandonment, Postponement, Interruption,
7 Curtailment or Relocation occurs during the Period of
Insurance.
8
14. The Policies Perils include, at clause 3:
9
...
10
3.2 ACCIDENTAL BODILY INJURY to or ILLNESS
11 of any Insured Person which, in the opinion of an
12
independent medical practitioner approved by the
Underwriters, prevents any Insured Person from
13
appearing or continuing to appear in any or all of the
Insured Events.
14 ...
15 3.5 ALL OTHER PERILS not specifically limited or
excluded elsewhere in this Insurance.
16
15. The Policies define Material Facts as follows:
17
...
18
4.11 Material Facts means those facts which the
19 Underwriters conclude, in their sole discretion, are
necessary for their determination of:
20
4.11.1 the acceptance or otherwise of the risk or any
21
subsequent amendment; or
22
4.11.2 the premium; or
23
4.11.3 the application of any additional Terms,
24 Conditions, Exclusions, Warranties and
Limitations.
25
16. Furthermore, the Policies are subject to the following Conditions
26 Precedent to liability:
27
28
24
1
5. CONDITIONS PRECEDENT
2 It is a condition precedent to any liability of the Underwriters

that
3
4
5.1.1 truthfully declared all Material Facts having
5
made all reasonable inquiries, including of any
6
Insured Person, to establish those facts;
7
5.1.2 established to its best knowledge and belief after
making reasonable inquiry that no Insured Person
8 has any physical or psychological medical
condition or is undergoing any treatment, medical
9 or otherwise, other than those disclosed in writing
to the Underwriters prior to the inception of this
10 Insurance and agreed by them in writing; and
11 5.1.3 declared that all information contained in any
completed Proposal Form and/or supplied to
12 support such Proposal Form or other application
for this Insurance is in all respects true and
13 complete and unchanged at the inception of this
Insurance. Further the Insured agrees that such
14 information is material to the Underwriters
15
acceptance of this risk, and forms the basis of this
Insurance and is incorporated herein.
16
5.2 each Insured Person is in all respects fit and able to fulfil the
17 commitments Insured herein;
18 5.3 coverage provided hereunder for any pre-existing physical or
psychological medical condition disclosed to and accepted by
19 the Underwriters pursuant to Section 5.1.2, shall cease from
the beginning of this Insurance if the Insured Person fails to
20 continue to follow any prescribed regime, medical or
otherwise, essential to the Insured Persons well-being during
21 the Period of Insurance;
22
23
5.4.1 no knowledge at the inception of this insurance,
24 of any undisclosed matter, fact or circumstance,
actual or threatened, that increases or could
25 increase the possibility of a loss under this
insurance;
26
5.4.2 confirmed that no Insured Person has knowledge
27 at inception, of any undisclosed matter, fact or
circumstance, actual or threatened, that increases
28
25
or could increase the possibility of a loss under

1 this Insurance.
2
3
diminish or otherwise mitigate a loss under this insurance,
4
Event;
6 Section 9.
7 ...
8 17. The Policies are subject to various General Conditions, inter
alia, at clause 7 including:
9
7.10 Any fraud, concealment, intentional misstatement or
10 negligent statement relating to the information provided
or in the making of a claim shall entitle the
11 Underwriters to refuse payment of a claim or treat this
12
Insurance as though it was void from its inception.
13
7.11 The Insured shall observe and fulfil the terms and
conditions contained in this Policy or endorsed hereon.
14 ...
15 7.13 The Insured shall maintain adequate records in
connection with the subject matter insured hereunder.
16
18. The Policies also exclude coverage, inter alia, at clause 8, as follows:
17
18 out of, contributed to by, or resulting from:

19
8.3 the non-appearance at an Insured Event of any Insured
20 Person due to:

21
22
(8.3.4) any pre-existing physical or psychological
medical condition known to the Insured or
23
Insured Person unless disclosed in writing to the
Underwriters prior to the inception of this
24 Insurance, and otherwise agreed in writing by the
Underwriters,
25
Person,
27
(8.3.8) the effects on an Insured Person of prescription
28 drugs when not taken as medically prescribed,
26
1 (8.3.9) the consumption of alcohol which renders and

Insured Person(s) unfit to perform contracted
2
duties.
3
8.4 the Insureds or any Insured Persons lack of care,
4
diligence or prudent behavior, the result of which would
increase the risk, and/or likelihood of a loss, hereunder.
5
19. The Policies also include the following claims procedure at Clause 9
6 as follows:
7 It is a condition precedent to any liability of the Underwriters that in
the event of any happening or circumstances which could give rise to
8 a claim under this Insurance, the Insured shall:
10 ...
11 (9.2.2) confirm the facts in writing as soon as possible,
12
with as much information and detail as available,
13
(9.2.3) forward immediately to the Underwriters or their
representatives any letter, writ or other document
14 received in connection with any claim made
under this insurance,
15
(9.2.4) provide the Underwriters or their appointed
16 representatives with:
17 e) all necessary assistance in a timely manner,
18 f) all required medical information,
19
g) all further information required,
20
h) all documentation and records necessary to
21
establish and assess the full amount of any
22
indemnity that may be due hereunder and
copies or extracts as may be required,
23
(9.2.5) take all steps to minimize, avoid or otherwise
24 mitigate any loss hereunder,
25 (9.2.6) prove the loss to the satisfaction of the
Underwriters,
26 ...
27
28
27
1 9.3 as often as may be reasonably required submit to examination

under oath on all matters connected with a claim, by any
2
person named by the Underwriters at such reasonable time and
3
place as may be designated by the Underwriters or their
representatives.
4
So far as is in its power the Insured shall cause its employees
5 and all other persons interested in the Insured Event, to
comply with the foregoing.
6
representatives in connection with any investigation
8 hereunder, shall be deemed a waiver of any defence which the
Underwriters might otherwise have. All such examinations
9 and acts shall be deemed to have been made or done without
prejudice to the Underwriters liability.
10
11 representatives a signed and sworn proof of loss, in such form
12
as may be required by the Underwriters, to substantiate the
occurrence, nature, cause and amount of loss claimed under
13
this Insurance.
14 9.5 allow the Underwriters the right, if they so wish, to:

15 9.5.1 take such steps as they deem necessary to
prevent, mitigate or minimize a loss.
16 ...
17 9.5.4 require independent medical examination of any
Insured Person who gives rise to a claim
18 hereunder.
19 B. The Insurance Claim
20
20. Following Kanye Wests reported illness and admission to UCLA
21
Medical Center, VGT made a claim for benefits under the Policies. As has been
22
widely reported in the media, Mr. West was hospitalized at UCLA for
23
approximately a week after his admission.
24
21. In connection with the claim, Underwriters thereafter engaged in a
25
series of communications with the insureds representatives and obtained
26
documentation and other information with respect to the claim. Based upon the
27
results of that investigation to date, Underwriters are informed and believe that
28
coverage is likely precluded under the Policies in light of the language cited
28
1 above, but have not been able to reach a final conclusion in that respect as of this
2 date because of the insureds failure and/or refusal to produce additional
3 information that was requested by Underwriters in connection with the
4 investigation into the claim, and further have been unable to obtain information
5 from third-parties. Because of the confidential nature of the issues involved with
6 the claim, and out of respect for the insureds privacy as to those matters,
7 Underwriters do not herein set forth the specifics with regard to the information
8 that has been provided to date, or as to the information requested but as of yet not
9 provided by the insured or its representatives, or as to the third-parties from which
10 Underwriters seek information.
11 22. Underwriters are informed and believe, and thereon allege, that their
12 ability to investigate and evaluate the claim remains impaired because of the
13 above.
14 23. While Underwriters have continued to conduct their investigation,
15 they have continued to reserve all of their rights under the Policys terms and
16 conditions and California law.
17 FIRST CAUSE OF ACTION
18 (For Declaratory Relief No Duty to Indemnify Against All Defendants)
19 24. Underwriters incorporate paragraphs 1 through 25 as if set forth in
20 full.
21 25. An actual controversy has arisen and now exists between
22 Underwriters and Plaintiff. Underwriters contend that they have no duty to
23 indemnify defendants because the insuring clause has not been triggered and the
24 tender is expressly excluded by Conditions Additional, Conditions Precedent,
25 General Conditions, and Exclusions in the Policy and because defendants are in
26 breach of the Policy conditions regarding providing necessary information,
27 assistance, and documentation.
28
29
1 Peril Not Beyond the Control of the Insured

2 26. Underwriters contend that they have no duty to indemnify Plaintiff
3 based upon the Policies Insurance Clause because such peril, as described in the
4 Policies, was not beyond the control of Plaintiff and each and every Insured
5 Person. The Insurance Clause states:
6 1.2 The Underwriters will indemnify the Insured for their
Ascertained Net Loss arising from the Insured Event(s) being
7
8
Curtailed or Relocated.
9
Provided that:
10 (1.1.1) the necessary Cancellation, Abandonment, Postponement,
Interruption, Curtailment or Relocation is the sole and
11 direct result of one or more of the Perils, as more fully
described in 3 below; and
12
(1.1.2) such Peril is stated in the Schedule to be insured; and
13
14
(vii) the Insured and
15 (viii) each and every Insured Person; and
(ix) in respect of 3.4 below the Insured, the Insured
17
(1.1.4) the Peril which is the sole and direct cause of the necessary
18
Cancellation, Abandonment, Postponement, Interruption,
Curtailment or Relocation occurs during the Period of
19 Insurance.
20
27. Underwriters allege on information and belief that the peril was not
21
beyond the control of the Plaintiff. Underwriters are informed and believe, and on
22
that basis allege, that Plaintiff has contended or will contend to the contrary.
23
Underwriters request that this Court make and enter its binding judicial
24
declarations in accordance with their contentions above. The requested
25
declarations are both necessary and proper at this time under the circumstances in
26
that the interests of judicial economy and substantial justice will be served
27
thereby.
28
30
1 Pre-existing Medical and Other Conditions

2 28. Underwriters contend that they do not have a duty to indemnify
3 Plaintiff based upon the Policies applicable Conditions Precedent:
4 4. CONDITIONS PRECEDENT
5 It is a condition precedent to any liability of the Underwriters
that
6
7
8
5.1.1 truthfully declared all Material Facts having
9 made all reasonable inquiries, including of any
Insured Person, to establish those facts;
10
5.1.2 established to its best knowledge and belief after
11 making reasonable inquiry that no Insured Person
has any physical or psychological medical
12 condition or is undergoing any treatment, medical
or otherwise, other than those disclosed in writing
13 to the Underwriters prior to the inception of this
Insurance and agreed by them in writing; and
14
5.1.3 declared that all information contained in any
15 completed Proposal Form and/or supplied to
16
support such Proposal Form or other application
for this Insurance is in all respects true and
17
complete and unchanged at the inception of this
Insurance. Further the Insured agrees that such
18 information is material to the Underwriters
acceptance of this risk, and forms the basis of this
19 Insurance and is incorporated herein.
20 5.2 each Insured Person is in all respects fit and able to fulfil the
commitments Insured herein;
21
5.3 coverage provided hereunder for any pre-existing physical or
22
psychological medical condition disclosed to and accepted by
23
the Underwriters pursuant to Section 5.1.2, shall cease from
the beginning of this Insurance if the Insured Person fails to
24
continue to follow any prescribed regime, medical or
otherwise, essential to the Insured Persons well-being during
25 the Period of Insurance;
26 5.4 the Insured has:
27 5.4.1 no knowledge at the inception of this insurance,
of any undisclosed matter, fact or circumstance,
28 actual or threatened, that increases or could
31
increase the possibility of a loss under this

1 insurance;
2
5.4.2 confirmed that no Insured Person has knowledge
3
at inception, of any undisclosed matter, fact or
circumstance, actual or threatened, that increases
4
or could increase the possibility of a loss under
this Insurance.
5
6 diminish or otherwise mitigate a loss under this insurance,
7 Event;
9 Section 9.
10 29. Underwriters are informed and believe and thereon allege that they
11 have no duty to indemnify Plaintiff based upon the aforementioned conditions.
12 Underwriters investigation continues, and Underwriters contend that the
13 additional information requested by Underwriters that has not been provided is
14 material to Underwriters investigation into these issues.
15 30. Underwriters request that this Court make and enter its binding
16 judicial declarations in accordance with their contentions above. The requested
17 declarations are both necessary and proper at this time under the circumstances in
18 that the interests of judicial economy and substantial justice will be served
19 thereby.
20 General Conditions
21 31. Underwriters are further informed and believe and thereon allege that
22 they have no duty to indemnify Plaintiff based upon the Policies General
23 Conditions. The Policies set forth the following General Conditions:
24
25
The Policies are subject to various General Conditions, inter
alia, at clause 7 including:
26
7.10 Any fraud, concealment, intentional misstatement or negligent
27 statement relating to the information provided or in the
making of a claim shall entitle the Underwriters to refuse
28
32
payment of a claim or treat this Insurance as though it was

1 void from its inception.
2
7.11 The Insured shall observe and fulfil the terms and conditions
3 contained in this Policy or endorsed hereon.
...
4
7.13 The Insured shall maintain adequate records in connection
5 with the subject matter insured hereunder.
6
32. Underwriters are informed and believe and thereon allege that there is
7
no duty to indemnify Plaintiff based upon the above, and that Plaintiffs contend
8
otherwise.
9
33. Underwriters request that this Court make and enter its binding
10
judicial declarations in accordance with their contentions above. The requested
11
declarations are both necessary and proper at this time under the circumstances in
12
that the interests of judicial economy and substantial justice will be served
13
thereby.
14
No Duty to Indemnify Policy Exclusions
15
34. Underwriters further allege on information and belief that they have
16
no duty to indemnify Plaintiff based upon the Policies applicable Exclusions as
17
set forth below:
18
8. EXCLUSIONS
19
20
out of, contributed to by, or resulting from:
21

22
8.3 the non-appearance at an Insured Event of any Insured Person
23 due to:

24
(8.3.4) any pre-existing physical or psychological
25 medical condition known to the Insured or
Insured Person unless disclosed in writing to the
26 Underwriters prior to the inception of this
27
Insurance, and otherwise agreed in writing by the
Underwriters,
28

33

Person,
2
3
(8.3.8) the effects on an Insured Person of prescription drugs
when not taken as medically prescribed,
4
(8.3.9) the consumption of alcohol which renders and Insured
5 Person(s) unfit to perform contracted duties.
8 35. Underwriters request that this Court make and enter its binding
9 judicial declarations in accordance with their contentions above. The requested
10 declarations are both necessary and proper at this time under the circumstances in
11 that the interests of judicial economy and substantial justice will be served
12 thereby.
13 Failure to Cooperate and Provide Necessary Information
14 36. Underwriters further allege on information and belief that they have
15 no duty to indemnify VGT based upon condition precedent 9 of the Policy which
16 states that PLAINTIFF shall comply with the claims procedure as follows:
17 8. CLAIMS PROCEDURE
18 It is a condition precedent to any liability of the Underwriters that in
the event of any happening or circumstances which could give rise to
19 a claim under this Insurance, the Insured shall:
21 ...
22
(9.2.2) confirm the facts in writing as soon as possible,
23
with as much information and detail as available,
24 (9.2.3) forward immediately to the Underwriters or their

representatives any letter, writ or other document
25 received in connection with any claim made
under this insurance,
26
(9.2.4) provide the Underwriters or their appointed
27 representatives with:
28 i) all necessary assistance in a timely manner,
34
j) all required medical information,

1
k) all further information required,
2
3
l) all documentation and records necessary to
establish and assess the full amount of any
4
indemnity that may be due hereunder and
copies or extracts as may be required,
5
(9.2.5) take all steps to minimize, avoid or otherwise
6 mitigate any loss hereunder,
7 (9.2.6) prove the loss to the satisfaction of the
Underwriters,
8 ...
9 9.3 as often as may be reasonably required submit to examination
under oath on all matters connected with a claim, by any
10 person named by the Underwriters at such reasonable time and
place as may be designated by the Underwriters or their
11 representatives.
12
So far as is in its power the Insured shall cause its employees
13
and all other persons interested in the Insured Event, to
comply with the foregoing.
14
representatives in connection with any investigation
16 hereunder, shall be deemed a waiver of any defence which the
Underwriters might otherwise have. All such examinations
17 and acts shall be deemed to have been made or done without
prejudice to the Underwriters liability.
18
19 representatives a signed and sworn proof of loss, in such form
as may be required by the Underwriters, to substantiate the
20 occurrence, nature, cause and amount of loss claimed under
this Insurance.
21
22
9.5 allow the Underwriters the right, if they so wish, to:
23
9.5.1 take such steps as they deem necessary to
prevent, mitigate or minimize a loss.
24 ...
25 9.5.4 require independent medical examination of any
Insured Person who gives rise to a claim
26 hereunder.
27
37. Underwriters desire a judicial determination and declaration of their
28
rights and obligations under the Policy with respect to the Insurance Clause and
35
1 Conditions Additional, Conditions Precedent, General Conditions, and Exclusions

2 in the Policy, including, inter alia, a declaration VGT failed in its duty to
3 cooperate with respect to Underwriters investigation into VGTs claim, which
4 cooperation was a condition precedent to any obligation of Underwriters to make
5 any payment on any claim of VGT.
6 38. A judicial determination of the respective obligations of the parties to
7 this Complaint is appropriate under the circumstances, and no other adequate
8 remedy is available to Underwriters.
9 PRAYER FOR RELIEF
10 WHEREFORE, Counterclaimants pray for judgment as follows:
11 1. That Plaintiff take nothing by way of its Complaint, or any of the
12 causes of action contained therein;
13 2. An order declaring and adjudging that Underwriters have no duty to
14 indemnify Plaintiff because the insuring clause has not been triggered and
15 Plaintiffs claim is expressly excluded by Conditions Additional, Conditions
16 Precedent, General Conditions, and/or Exclusions in the Policy, in addition to
17 Plaintiffs failure to cooperate;
18 3. An order entering judgment in favor of Defendants/Counterclaimants
19 and against Plaintiff;
20 4. That Defendants/Counterclaimants be awarded costs of suit incurred
21 herein;
22 5. That Defendants/Counterclaimants be awarded attorneys fees
23 incurred herein; and
24 6. For such other and further relief as the Court may deem just and
25 proper.
26 ///
27 ///
28 ///
36
1 JURY TRIAL DEMAND

2 Pursuant to Fed. R. Civ. P. 38, Counterclaimants hereby demand a trial by
3 jury on all claims so triable.
4
5 Dated: August 29, 2017 P.K. SCHRIEFFER LLP

6
7
By: /s/ Paul K. Schrieffer
Paul K. Schrieffer, Esq.
8 Wayne H. Hammack, Esq.
9 Attorneys for
Defendants/Counterclaimants
10
CATHEDRAL SYNDICATE: 2010,
11 a.k.a. CATHEDRAL SYNDICATE
12
MMX, AT LLOYDS OF LONDON,
a foreign company; LIBERTY
13 SYNDICATE 4472 AT LLOYDS
14 OF LONDON, a foreign company;
XL CATLIN SYNDICATE 2003 OF
15
LLOYDS OF LONDON, a foreign
16 company; MARKEL SYNDICATE
3000 OF LLOYDS OF LONDON,
17
a foreign company; ALLIANZ
18 GLOBAL CORPORATE &
19
SPECIALTY SE, a foreign company
20
21
22
23
24
25
26
27
28
37
1 Certificate of Service
2 I hereby certify that on August 29, 2017, I electronically filed the foregoing
3 ANSWER AND COUNTERCLAIM FOR DECLARATORY RELIEF OF
4 DEFENDANTS AND COUNTERCLAIMANTS CATHEDRAL
5 SYNDICATE: 2010, a.k.a. CATHEDRAL SYNDICATE MMX, AT
6 LLOYDS OF LONDON, a foreign company; LIBERTY SYNDICATE 4472
7 AT LLOYDS OF LONDON, a foreign company; XL CATLIN SYNDICATE
8 2003 OF LLOYDS OF LONDON, a foreign company; MARKEL
9 SYNDICATE 3000 OF LLOYDS OF LONDON, a foreign company;
10 ALLIANZ GLOBAL CORPORATE & SPECIALTY SE, a foreign company
11 with the Clerk of Court using the CM/ECF system, which will send notification of
12 such filing to the following counsel of record:
13
14
Howard E. King
Seth Miller
15 King, Holmes, Paterno & Soriano
16 1900 Avenue of the Stars
Twenty Fifth Floor
17
Los Angeles, CA 90067
18 Counsel for Plaintiff and Counter-Defendant, Very Good Touring, Inc.
19
P.K. SCHRIEFFER LLP
20
21 By: /s/ Paul K. Schrieffer

Paul K. Schrieffer
22
Cal. State Bar No. 151358
23 pks@pksllp.com
100 North Barranca, Suite 1100
24
West Covina, California 91791
25 Telephone: (626) 373-2444
26
Facsimile: (626) 974-8403
Attorneys for Defendants and Counter-Claimants
27
28
38

Kanye West Lloyds London Countersuit

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Case 2:17-cv-05693-E Document 15 Filed 08/29/17 Page 1 of 38 Page ID #:70

14 VERY GOOD TOURING, INC., ) CASE NO. 2:17-cv-05693

CATHEDRAL SYNDICATE: 2010, )

1 obligation to do so in connection with their investigation into Plaintiffs claim.

1 remaining allegations in paragraph 12.

1 sentence of paragraph 18 of the Complaint. Defendants lack sufficient

1 paragraph 26 of the Complaint.

28 (i) the Insured and

(iii) in respect of 3.4 below the Insured, the Insured

26 5.4 the Insured has:

1 5.4.2 confirmed that no Insured Person has knowledge

10 Furthermore, as Defendants have repeatedly explained to the Plaintiffs

to the Underwriters prior to the inception of this Insurance, and

14 9.1 not misrepresent or conceal facts in the making of a claim.

17 (9.2.2) confirm the facts in writing as soon as possible, with as much

19 (9.2.3) forward immediately to the Underwriters or their representatives

22 (9.2.4) provide the Underwriters or their appointed representatives with:

1 (9.2.6) prove the loss to the satisfaction of the Underwriters,

1 35. In answer to paragraph 35 of the Complaint, Defendants deny each

1 47. In answer to paragraph 47 of the Complaint, Defendants deny each

21 THIRD AFFIRMATIVE DEFENSE

1 FOURTH AFFIRMATIVE DEFENSE

1 EIGHTH AFFIRMATIVE DEFENSE

1 income, merchandising income, memorabilia and or its agreement(s) with its

1 EIGHTEENTH AFFIRMATIVE DEFENSE

26 The claim made by VGT relates to the November 2016 cancellation of

1 9. Thereafter, and in exchange for valuable consideration, Underwriters

1 (1.1.2) such Peril is stated in the Schedule to be insured; and

2 It is a condition precedent to any liability of the Underwriters

or could increase the possibility of a loss under

1 (8.3.9) the consumption of alcohol which renders and

1 9.3 as often as may be reasonably required submit to examination

14 9.5 allow the Underwriters the right, if they so wish, to:

1 Peril Not Beyond the Control of the Insured

1 Pre-existing Medical and Other Conditions

increase the possibility of a loss under this

payment of a claim or treat this Insurance as though it was

1 (8.3.7) the possession or use of illegal drugs by an Insured

24 (9.2.3) forward immediately to the Underwriters or their

j) all required medical information,

1 Conditions Additional, Conditions Precedent, General Conditions, and Exclusions

1 JURY TRIAL DEMAND

5 Dated: August 29, 2017 P.K. SCHRIEFFER LLP

21 By: /s/ Paul K. Schrieffer

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