Death-defying stunts and an endless stream of contingencies caused by the COVID-19 pandemic are compelling Paramount Pictures and its financial partners to contribute a massive $290 million budget for Mission: Impossible – Dead Reckoning Part One. To be tens of millions more than they expected to spend on the Tom Cruise-led project. Paramount will get some of that back in a deal with the Federal Insurance Company to settle a lawsuit accusing the Chubb unit of refusing to live up to the terms of its insurance policy.
According to a court document filed Wednesday, the two sides have reached a preliminary agreement to settle claims over delays and costs of manufacturing COVID-19. The terms of the resolution were not disclosed. It is expected to be completed on August 5.
Paramount sued Federal in California court last year to seek coverage for a policy that paid out more than $100 million for losses due to production stoppages. The studio claimed the policy should have been activated when unnamed cast members contracted COVID-19 and civil authorities stopped filming the film.
Under the provision for cast coverage, Federal agreed to pay for “loss” that Paramount “immediately and exclusively bears.”[s] by one or more insured persons in connection with an insured production, are necessarily prevented by their death, injury, illness or abduction … from starting, continuing or completing their respective duties in an insured production,” the complaint reads. The policy defined “loss” as any additional costs incurred in “completing an insured production in addition to expenses”. It would also have insured losses “as a result of a crisis event that … results in the immediate cessation of production.”
Federal paid only $5 million. It claimed that only a portion of Paramount’s claimed losses are covered by the policy, arguing that additional costs due to the pandemic are only covered by the $1 million policy from the civil government. She also claimed that the various suspensions and transfers constitute a single loss, despite having occurred in different locations.
Remarkably, Federal stated that there was no evidence that cast and crew members were unable to continue their duties despite being infected with SARS-CoV-2 and posing an undeniable risk to other individuals involved in the production. complaint.
In a motion responding to Paramount’s claims, Federal said the “policy speaks for itself” and opposed Paramount’s characterization of the coverage.
The settlement was reached before a mediation deadline. The trial was to begin in September.
Disney also sued its insurer, Fireman’s Fund, last year, arguing that civil authorities ordered production to stop, triggering coverage.
Mission: Impossible – Dead Reckoning Part One experienced several suspensions while filming, moving from Venice, Rome, back to Venice, UK, Abu Dhabi and then back to UK again. It is scheduled for release in July 2023.
Chubb declined to comment. Lawyers representing Paramount and Chubb did not respond to requests for comment.