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Chicks' Tour Co. Sues Lloyd's For $7M Over Canceled Shows

By Shawn Rice · 2021-03-03 20:28:58 -0500

Lloyd's underwriters are on the hook to the tune of $6.6 million over the Chicks' canceled tour of their "Gaslighter" album, the band's touring company argued Wednesday in California state court, claiming there isn't any way for concert venues to reopen in light of the coronavirus pandemic.

The Chicks lead singer Natalie Maines during a 2014 tribute concert to Billy Joel. (AP Photo/Carolyn Kaster)

The Chicks were expected to tour in 2020 for the first time in 14 years, according to Tunashoe Tours Inc. However, the COVID-19 outbreak forced the cancellation of their three-month, 48 indoor-arena swing. Despite efforts to reschedule, the 13-time Grammy Award-winning band, formerly known as the Dixie Chicks, was unable to perform for fans who had been encouraged to stay home by government orders.

The Chicks' touring company, which sued in Los Angeles Superior Court, says it has been fighting a 10-month campaign with Lloyd's for its cancellation insurance. The underwriters have repeatedly asked irrelevant questions and stalled in their responses, according to the complaint.

Tunashoe said the underwriters suggested the band hold concerts with reduced audiences, but that would only hurt the band's reputation, the company said.

And if the Chicks were to perform at open-air festivals or through a paid online streaming session, that "would only exacerbate, rather than diminish, any loss," the Chicks' touring company said, likening such live online performances to holding "car washes."

When states began shutting down businesses and discouraging public gatherings, the music industry was faced with financial losses from canceled events. A year later, even with the rollout of vaccines, Tunashoe said its concerts and other live events were unlikely to resume in 2021.

Given the uncertainty about herd immunity and the complications of rescheduling, Tunashoe filed Wednesday's complaint to force the underwriters to cover its COVID-19-related losses.

The suit involving the Chicks' tour is the second recent one against Lloyd's over losses from event cancellations due to the pandemic. Trade show operator Emerald Holding Inc. sued Lloyd's and another insurer in California federal court last month, saying their policies are supposed to cover events affected by COVID-19. The insurers were being nonresponsive and obstructive during the claim investigation, Emerald said.

Likewise, the Chicks' touring company said Lloyd's hasn't been cooperative because it repeatedly asks why the tour isn't being rescheduled. Any new tour, even if possible, wouldn't coincide with a release of a new Chicks' album, according to the complaint, as "Gaslighter" hit the market in July 2020.

The touring company asserted claims for breach of contract and bad faith.

This suit, filed on behalf of the company by Pasich LLP, comes less than a week after the law firm lost a coverage fight while representing a San Francisco concert operator against a Chubb unit over COVID-19-related losses. In that suit, a California federal judge ruled Another Planet Entertainment couldn't show property damage from the coronavirus.

Counsel for Tunashoe and representatives for the underwriters couldn't be reached for comment.

Tunashoe is represented by Kirk Pasich and Anamay M. Carmel of Pasich LLP.

Counsel information for the underwriters was not immediately unavailable.

The case is Tunashoe Tours Inc. v. Certain Underwriters at Lloyd's London, case number 21STCV08218, in the Superior Court of the State of California, County of Los Angeles.

--Additional reporting by Daphne Zhang and Lauren Berg. Editing by Adam LoBelia.

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