A trial that began yesterday (February 28) will determine whether Media Rights Capital (MRC) can recover more than $100 million in losses tied to the final season of House of Cards, according to The Hollywood Reporter.
The case stems from MRC’s effort to recoup costs from its insurer, Fireman’s Fund, after production was disrupted when Kevin Spacey did not return for Season 6. Spacey previously faced an arbitration award of more than $31 million for breaching his contract; that figure was later reduced to $1 million as part of an agreement in which he provided medical records and a declaration relevant to the insurance dispute.
At the center of the trial is a single question: whether Spacey’s absence was caused by a “sickness,” which would trigger coverage under MRC’s policy, or by business decisions following public allegations of sexual misconduct.
By late October 2017, production had already filmed the first two episodes of the sixth season. A report published by BuzzFeed on October 29 detailed allegations against Spacey, prompting MRC to pause production two days later. On November 2, CNN reported additional accusations involving crew members. Spacey entered treatment at The Meadows that same day, and MRC announced his suspension shortly after.
Conflicting messages followed. Spacey’s attorney, Todd Rubenstein, told MRC on November 4 that the actor was “available, willing and able to provide all of the services” required under his contract. Earlier, his agent had described him as “sick” and going away for a “very long time,” at least six months. MRC ultimately rewrote the season to remove his character.
Fireman’s Fund contends that MRC’s decision to suspend Spacey was driven by reputational and business considerations, not illness. The insurer points to the role of Netflix, which held contractual “tiebreaker” rights over creative decisions. Testimony from a former MRC executive stated those rights had “everything to do with” the character’s removal.
MRC disputes that interpretation, maintaining the decision was based on Spacey’s condition and inability to work. In a deposition, MRC CEO Scott Tenley said, “Charitably, I believed [Rubenstein] was simply taking a legal position,” when asked about the attorney’s assertion that Spacey could still perform.
Jurors are expected to evaluate whether the losses from the sixth season were directly and solely caused by a covered sickness, as required under the policy. Spacey is anticipated to testify that he was unable to work when the allegations first surfaced and that he required ongoing treatment.
The outcome could clarify how production insurance policies interpret illness-related disruptions, particularly when conduct and medical conditions are both cited as contributing factors.
