Chubb’s COVID-19 Claim Denials Draw Litigation from Hollywood
Well-known policyholder and insurance recovery attorney Kirk Pasich and his firm have sued Chubb insurance companies on behalf of policyholders in the entertainment industry to recover millions in losses they suffered as a result of the Covid-19 pandemic.
Entertainment Business Interruption
On Nov. 11, 2020, the firm filed suit on behalf of United Talent Agency LLC in Los Angeles County Superior Court against Vigilant Insurance Co. and Federal Insurance Co. UTA seeks coverage for the millions it lost when concerts and television and movie projections had to be cancelled. The complaint says both carriers are part of the Chubb group, “which has adopted a universal practice of denying coverage for all business interruption claims associated with SARS-CoV-2, Covid-19, and subsequent events” (UTA v. Vigilant, No. 20STCV43745, Calif. Super. Ct., Los Angeles). Acts affected include Post Malone, Guns N’ Roses, and Toby Keith.
The case hinges in part on the carriers’ assertion that there was no “physical loss or damage.” UTA finds Vigilant based its finding on little information, and knowing for decades that “many courts have held that the presence of a hazardous substance on a property, including the airspace inside buildings, constitutes property damage and that there may be ‘direct physical loss’ to property even if the property is not structurally damaged.”
Pasich and his partner Michael S. Gehrt represent UTA.
Film Coverage “Fraudulently Reformed”
On Sept. 9, 2020, motion picture production company Hoosegow (Hypnotic) Productions Inc. sued Chubb National Insurance Company in federal court in California, arguing that the carrier breached its agreement to extend coverage for the film, titled Hypnotic starring actors including Ben Afleck, should production be delayed.
When Covid-19 hit and stopped production, Chubb, instead of extending the policy, cancelled it and offered to renew it with a Covid-19 exclusion. This is a “material reduction in the scope of the insurance,” the complaint states (Hoosegow v. Chubb National, No. 2:20-cv-08253, C.D. Calif.).
“Chubb National’s conduct is despicable,” the complaint continues, “and has been done with a conscious disregard of Hoosegow’s rights, constituting oppression, fraud, and/or malice.” The production company claims substantial financial losses due to the carrier’s “intent to injure,” justifying an award of punitive damages. Breach of contract, bad faith, fraudulent promise without intent to perform, fraud in the inducement, negligent misrepresentation, and fraudulent reformation of the contract are among the claims brought against the carrier.
Pasich and his colleague Jacquelyn M. Mohr represent Hoosegow.
Chubb CEO Evan Greenberg reportedly said on an earnings call this summer that plaintiff attorneys are “attempting to torture or reverse engineer insurance contract language to conjure up business interruption coverage that for the most part simply doesn’t exist.”
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Mass Tort Emotional & Psychological Claims
Emotional & Psychological Claims in Multi-Plaintiff Toxic Tort Litigation: What attorneys need to know about the scientific and medical aspects of these injuries. On-Demand | Recorded October 27th, 2020 ON DEMAND WEBINAR REGISTRATION Emotional injury claims often arise in toxic torts due to exposure to asbestos, mold, carbon monoxide, and environmental contamination, to name a few. And now, as large swaths of the nation are often engulfed in flame, what physical and emotional effect might manifest from prolonged smoke inhalation? Determining the validity of these injuries and any causal connection is difficult. It requires careful study by truly qualified experts often from various disciplines. When psychological harm exists, it can be debilitating. There is much an attorney should know when wading into these types of claims. How often is there a legitimate injury? What different types of injuries are there? What should attorneys know when working with or challenging psychological experts? How is causation proven or disproven? How are damages determined? Join our panel comprising a forensic neuropsychologist, an industrial and occupational physician, a forensic psychiatrist, and an experienced mass tort practitioner as they share their insights and experiences. Key Points Understanding the different types of psychological injury claims. Understanding the differences between objective injuries that are easy to identify and distinguish, versus subjective injuries such as pain or restricted movement. Distinguishing between real psychological injuries and malingering. Understanding the frequency of valid emotional injuries. Identifying the causal relationship between exposure and health effects. Knowing and understanding key medical studies. Understanding the evidence needed to prove or disprove claims. Evaluating damages, such as treatment costs and the extent of functional impairment. On Demand Webinar Registration Includes Nearly 75 minutes of insights from experienced professionals. CLE credit: 1+ (subject to bar rules). For CLE questions: CLE@LitigationConference.com The complete Power Point presentation. Continued access to the complete recording for later use. Answers to your questions via email to the presenters or write to HB and we will be sure to contact the speakers. ON DEMAND WEBINAR [...]
The Intersection of Privacy and Antitrust Webinar Now Available On-Demand on the West LegalEdcenter
Available as part of your subscription to The Thomson Reuters West LegalEdcenter®. Don't subscribe to the West LegalEdcenter? This webinar is still available directly from HB. Take it now! Questions for speakers Questions@LitigationConferences.com CLE questions CLE@LitigationConferences.com Check out the MoginRubin blog for more insights on antitrust and privacy law. What attorneys and companies need to know about the increasing interplay between these critical areas of the law. Highly publicized cases and investigations in the U.S. and Europe of big technology, e-commerce, and social media companies demonstrate how anti-competition laws are being used to scrutinize and challenge not only how these corporations conduct themselves in the marketplace, but the very core of their colossal success: the mass collection and utilization of user data. Are the privacy and antitrust worlds beginning to cross over? Or do they simply run parallel while addressing entirely different types of conduct? Whatever the answer, data is the raw material that drives the likes of Google, Facebook, Apple and Amazon, so how it is handled is a critical question when counseling clients on mergers and acquisitions. Moderator Daniel J. Mogin | Managing Partner, MoginRubin LLP Speakers Jennifer M. Oliver, CIPP/US | Partner, MoginRubin LLP Thomas N. Dahdouh | Director, Western Region, Federal Trade Commission Franklin M. Rubinstein | Partner, Wilson Sonsini Goodrich & Rosati Randi W. Singer, CIPP/US, CIPT | Partner, Weil, Gotshal & Manges Contributor Dina Srinivasan | Independent Researcher & Author of The Antitrust Case Against Facebook Dina was unable to present but we thank her for her content contributions. Agenda Who should regulate privacy violations in the U.S.? Which antitrust issues implicate privacy concerns? What role does machine learning play on the competitive landscape? What is big data really? How is it different from “data”? What are the elements of effective merger reviews? What are the appropriate remedies? What are “notice-and-choice” versus “harms-based” approaches? Plus answers to your questions. Send them to Questions@LitigationConferences.com.