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Jury Rules Spacey's Condition Not Primary Cause for Loss
24 Mar
Summary
- Jury found Spacey's condition was not the main driver of financial losses.
- Reputational harm and bad PR were cited as bigger factors by jurors.
- The insurance payout of $29.5 million was ultimately denied.
Jurors in a recent trial found that Kevin Spacey's "sickness" was not the predominant cause of the $29.5 million loss incurred by "House of Cards" production company Media Rights Capital (MRC). The production company had sought a payout from its insurer, Fireman's Fund, for losses stemming from halting production and writing Spacey out of the show's final season.
Jurors indicated that while Spacey did receive a diagnosis of a covered illness, reputational harm and negative public relations were deemed more significant drivers of the financial loss. An internal email from Netflix Co-CEO Ted Sarandos in November 2017, stating Spacey would not appear in the final season, predated the formal diagnosis of "sexual compulsive behavior" in December 2017.
MRC lawyers argued Spacey's "mental illness" posed an ongoing risk, necessitating his removal. However, the insurer's lawyer contended that the public revelation of Spacey's alleged misconduct was the true cause of the financial damage. Previous proceedings saw an arbitrator find Spacey liable for $31 million, which was later reduced to $1 million in a settlement.
