TV show’s COVID-related lawsuit vs. Chubb dismissed

A federal judge has dismissed COVID-related business interruption litigation filed against a Chubb Ltd. unit by producers of the “Morning Show” television series, citing the plaintiff’s failure to claim direct physical loss or damage.

The U.S. District Court in Los Angeles also dismissed the breach of contract charge filed by Los Angeles-based Always Smiling Productions LLC for Chubb National Insurance Co.’s refusal to extend or offer a new policy with comparable terms, according to Tuesday’s ruling in Always Smiling Productions LLC v. Chubb National Insurance Co.

Always Smiling said it had incurred losses of about $34.9 million in connection with the March 2020 shutdown of the comedy, which is broadcast on Apple+. 

Chubb agreed to cover $1 million in losses under the policy’s civil authority or military provision, but did not cover other losses, and also notified the production company it would not renew its policy, which expired on Nov. 7, 2020.

Always Smiling filed suit against Chubb in July 2021, charging breach of contract for “refusal to provide the full promised insurance,” breach of contract for failing to extend the policy period and breach of the implied covenant of good faith and fair dealing.

In granting the insurer’s motion to dismiss the case, the ruling cited last year’s ruling by the 9th U.S. Circuit Court of Appeals in San Francisco’s ruling in Mudpie Inc. v. Travelers Casualty Insurance Co. of America, stating an insured is required to allege “physical alteration of its property.”

“Given the ordinary meaning of the terms ‘physical loss or damage,’ which are not typically associated with personal injuries, and the meaning other courts have given this phrase…the court is persuaded that the defendant’s interruption is correct,” the decision said, in dismissing the case.

Attorneys in the case had no comment or did not respond to a request for comment.