AEG Sues Insurers For Michael Jackson Defense

AEG filed suit against two of its insurers Jan. 30, alleging Axis Insurance and Greenwich Insurance breached their contracts to provide coverage as the concert promoter defended itself in the wrongful death suit and appeals filed in the Michael Jackson case.

Photo: Pat Roque, File/AP
Performing the first of two concerts in Manila during the HIStory World tour.

Policies with both companies required them to defend AEG Live against those lawsuits, according to AEG’s complaint. AEG’s suit was filed the same day the California Court of Appeals rejected Katherine Jackson’s attempt to revive an estimated $1.5 billion wrongful death claim against the company. Jackson alleged AEG was negligent in the hiring of Conrad Murray as her son’s personal physician.

In court documents, AEG says it has paid defense costs “at reasonable rates millions of dollars in excess of the self-insured retentions to which the policies are subject.”

AEG says with the exception of a $5 million partial payment by Axis in 2014, neither insurer has paid any of its defense costs to date. “Insureds have suffered millions of dollars in damages in reasonable and necessary attorneys’ fees and other costs incurred to defend against those actions, and are entitled to recover” those costs plus interest from both insurers, according to court documents.

The suit seeks those compensatory damages, plus attorneys and court fees, and a declaration from the court that the insurers are obligated to defend and/or pay all past and future defense costs in the case.