Navigators Asks Court to Excuse It From $30.5 Million Lady Gaga Suit

Copyright:	A.M. Best Company, Inc.
Source:	BestWire Services
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Navigators Specialty Insurance has asked the New York County Court to excuse it from a $30.5 million lawsuit involving pop superstar Lady Gaga.

The insurer said it has no obligation to provide coverage for the singer, whose real name is Stefani Germanotta, because professional services were not involved in the dispute, which involves her ex-boyfriend Rob Fusari claiming in part that he was improperly removed from the decision-making process and subsequent payment involving distribution of her music, according to court documents.

Navigators defines professional services as music publishing, song writing, live performances, personal appearances, licensing/merchandising and content on www.ladygaga.com. However, none of the allegations in the suit assert that any insured was negligent in any of these areas. The claims instead all arise from Germanotta's alleged failure to pay Fusari, court documents said.

A spokeswoman for Navigators declined to comment further on the case, saying the company does not comment on litigation matters.

In his original March 17 lawsuit against Germanotta, filed in the Supreme Court of the State of New York, Fusari claimed he had played Germanotta's music for an executive at Island Def Jam, which ultimately led to her being signed "on the spot" by music producer L.A. Reid, who at the time was president of the company. Fusari also claims he coined the name "Lady Gaga," and said he was responsible for introducing the singer to Jimmy Iovine, chairman of her current music label, Interscope Records Inc., but then found himself "frozen out" of the negotiations taking place. He said co-defendants Mermaid Music and Team Love Child -- the latter of which Fusari said he was a 20% member -- cut him out of a second distribution deal.

Navigators in court papers also pointed to a policy exclusion by which Fusari's ownership interest in Team Love Child makes him an insured under the same policy, which would preclude coverage.

Attempts to reach Navigators attorney Thomas Leghorn, of the law firm Wilson, Elser, Moskowitz, Edelman & Dicker, for comment were unsuccessful.

Navigators Specialty Insurance Co. has a current Best's Financial Strength Rating of A (Excellent).

Shares of Navigators Group (NASDAQ: NAVG) were selling at $43.13 a share in early afternoon trading on July 13, up 1% from the previous close.

(By Caroline Saucer, editor, BestWeek: [email protected])