(CN) - Live Nation sued Lloyd's of London for refusing to pay claims from a Lady Gaga concert that was canceled in Indonesia after threats from Islamic extremists.
Live Nation LGTours, Mermaid Touring, and The Atom Factory sued three syndicates at Lloyd's in Los Angeles Federal Court, for losses from a June 3, 2012 concert in Jakarta that was canceled.
Lady Gaga (Stefani Germanotta) is not a party to the complaint.
Live Nation claims that after tickets for the show went on sale, a number of Islamic extremist groups threatened Lady Gaga and others, saying they would block her entry into the city, or, failing that, disrupt the show at the 52,000-seat stadium.
"Beginning on or about May 14, 2012, Indonesian and Jakarta police and government officials and others began issuing statements that various Islamic or other groups were threatening to use force or violence against the Jakarta concert for political, religious, ideological or similar purposes," Live National says in the complaint.
The complaint cites newspaper and magazine articles that reported, among others things, that "one of the groups, hard-line Islamic Defenders Front (FPI), said it would dispatch 30,000 of its members and supporters to prevent Gaga from entering Jakarta."
A few days after, The Australian newspaper quoted Muhali Barda, a spokesman for the group, stating that its supporters had purchased more than 150 tickets to the concert. Barda posted a picture of his Facebook page of a man in Turban and sunglasses who was holding a $50 ticket to the concert.
Live Nation claims the photo caption stated: "We have gotten Lady Gaga tickets. Not to watch but for us to enter."
Barda was quoted as saying: "Our target is to stop the concert. We would force them off the stage, but not harm the audience."
But police told the press that they feared what would happen if the concert were held
"If they insist on [holding the concert], conflicts may emerge between people who support and reject the show," a senior police commander told the Jakarta Globe newspaper. "The impact won't be good."
Live Nation adds: "In order to prevent bodily injury and property damage and to protect lives and safety of Lady Gaga, all members of the Born This Way tour, and the public, on or about Thursday, May 17, 2012, the Jakarta Concert was necessarily canceled."
The plaintiffs filed claims for losses with the three Lloyd's syndicates.
They claim that the insurance contract stated: "subject always to the terms, conditions, limitations, and exclusions contained herein or endorsed hereon this Insurance is to indemnify the insured for their Ascertained Net Loss, including any reduction in Profit (When profit is insured and stated herein), should any insured performance(s) or event(s) specified herein be necessarily Canceled, Abandoned, Rescheduled, Interrupted or Relocated, in whole or in part, which necessary Cancellation, Abandonment, Rescheduling, Interruption or Relocation is the sole and direct result of Terrorism and/or Sabotage or Threat thereof."
But Live Nation says the insurers refused to pay.
"The insurers' denial of coverage under The Terrorism Policies was unreasonable, without proper cause and in bad faith," the complaint states. "Among other things, the insurers denied coverage based on language and purported conditions that are not contained in The Terrorism Policies. The Insurers have engaged in such conduct for the purpose of impairing the Plaintiffs' rights to receive the benefits of The Terrorism Policies."
The plaintiffs seek compensatory and punitive damages for breach of contract and breach of implied covenant of good faith and fair dealing.
They are represented by Joshua J. Pollack of Proskauer Rose in Los Angeles and Paul Langer with Proskauer Rose in Chicago.
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