AceShowbiz - A trial that began on February 28 will decide whether Media Rights Capital (MRC) can recover over $100 million in losses linked to the final season of House of Cards, according to The Hollywood Reporter. This lawsuit concerns MRC’s attempt to claim insurance coverage from Fireman’s Fund after production was halted when Kevin Spacey did not return for Season 6.

The dispute arises from whether Spacey’s absence was due to a "sickness" covered by MRC’s insurance policy or a business decision triggered by public sexual misconduct allegations against the actor. Previously, Spacey faced an arbitration ruling ordering him to pay more than $31 million for breaching his contract, though that amount was later reduced to $1 million in exchange for medical documents and a declaration related to the insurance claim.

By late October 2017, the first two episodes of the sixth season had been filmed. On October 29, BuzzFeed published allegations against Spacey, causing MRC to pause production two days later. CNN reported additional accusations involving crew members on November 2. That same day, Spacey entered treatment at The Meadows, and shortly afterward, MRC announced his suspension from the series.

Following these events, conflicting statements emerged. Spacey’s attorney, Todd Rubenstein, informed MRC on November 4 that the actor was “available, willing and able to provide all of the services” stipulated in his contract. However, Spacey’s agent had earlier described him as “sick” and planning to be away for “a very long time,” at least six months. Ultimately, MRC reworked the season’s scripts to remove Spacey’s character entirely.

Fireman’s Fund argues that MRC’s decision to suspend Spacey was motivated by reputational and commercial concerns rather than illness. The insurer highlights Netflix’s contractual “tiebreaker” power over creative decisions and cites testimony from a former MRC executive, who stated those rights “had everything to do with” removing Spacey’s character.

In contrast, MRC maintains that the suspension was based on Spacey’s medical condition and inability to continue working. During a deposition, MRC CEO Scott Tenley remarked, “Charitably, I believed [Rubenstein] was simply taking a legal position,” when questioned about the attorney’s claim that Spacey remained capable of performing.

The trial will require jurors to determine if the losses from the sixth season were caused directly and exclusively by a covered sickness, as demanded by the insurance policy. Spacey is expected to testify that he was unable to work when the allegations first emerged and that he required ongoing treatment.

The verdict could set an important precedent for how production insurance policies address illness-related disruptions, especially when both misconduct and medical issues factor into the circumstances. The outcome will clarify whether allegations of personal conduct can negate insurance coverage otherwise triggered by health conditions.