Lloyd’s of London’s settles with Michael Jackson Co.
LOS ANGELES (CNS) – A settlement was announced today in Lloyd’s of London’s suit against the Michael Jackson Co. LLC in which the insurer sued to affirm it was not obligated to pay a $17.5 million tour-cancellation policy triggered by the singer’s death.
Lawyers for both sides told Los Angeles Superior Court Judge Malcolm Mackey they reached a resolution of the dispute shortly before a hearing was scheduled in the case.
“Miracles do happen,” Mackey said. “Fantastic. I think I made a prediction a couple of years ago that the case would settle.”
Lloyd’s attorney Paul Schrieffer said outside the courtroom that he was pleased the case ended amicably after three years of litigation.
Lloyd’s of London filed suit against AEG Live and the Michael Jackson Co. LLC in June 2011. Lloyd’s wanted a judge to declare it was not obligated to pay a $17.5 million insurance claim on grounds that the insurer was not told the singer was taking drugs before he died from an overdose of propofol on June 25, 2009, at age 50.
Both AEG Live and The Michael Jackson Co., which was once owned by the singer and is now part of his estate, were insured by Lloyd’s. AEG Live previously dropped its claim for benefits.