The studio looked to claw back from its insurer extra costs incurred by the pandemic after shooting was halted by cast members getting sick and civil authority orders.
Paramount sued Federal in California court last year seeking coverage of a policy that paid out upwards of $100 million for losses resulting from production interruptions. The studio claimed the policy should have been triggered when unnamed cast members contracted COVID-19 and civil authority orders halted filming of the movie.
Federal only paid out $5 million. It maintained that only part of Paramount’s claimed losses are covered under the policy, arguing that extra costs arising from the pandemic are only covered under the policy’s $1 million civil authority coverage. It also claimed that the several suspensions and relocations constitute a single loss despite having occurred in different locations.
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