LOS ANGELES: Heath Ledger’s former attorney is suing insurance company ReliaStar for refusing a US$10 million payout in benefits to Ledger’s daughter.

The late Australian actor was found dead in his apartment in January from an accidental overdose of prescription medications.

However, ReliaStar claimed that his death is shrouded by suspicious circumstances and could possibly be a suicide, which then nullifies the policy.

John S Laviolette, an entertainment industry attorney whom Ledger appointed custodian of the policy, is suing ReliaStar for refusing the claim to the beneficiary of the policy, Matilda Rose, Ledger’s 3-year-old daughter with actress Michelle Williams.

William Shernoff, the attorney representing LaViolette and Matilda said, “ReliaStar want to investigate the possibility of suicide, and we think that is inappropriate because the coroner's report and all the official reports say it was accidental.”

“It is distressing for everybody. The insurance company wants to spend months, if not years, investigating this so they can hold on to their money.”

A ReliaStar spokesman said that the claim on the policy was still under investigation and the company had not made a decision yet.

The company said in court filings it was entitled to investigate because Ledger died within two years of taking out the policy, and accused the other side of failing to cooperate.

News of the legal dispute surfaced after Ledger’s father said that Matilda Rose will inherit all of her father's estate, believed to be worth more than US$16.3 million.

Ledger, who died at age 28, received an Oscar nomination for his role in “Brokeback Mountain”, and his performance as the Joker in recent blockbuster “The Dark Knight” has been critically-acclaimed.

- CNA/sl