Kevin Spacey has reached a settlement in the arbitration case brought against him by the production company behind House of Cards, according to a report by Variety. The actor will pay $1 million to Media Rights Capital (MRC) over several years to resolve the dispute stemming from sexual misconduct allegations.
This settlement amount is significantly lower than the original $31 million that Spacey was ordered to pay in 2021 for breaching his contract. The arbitrator had found the claims of sexual harassment made by young crew members on the show to be credible. Spacey, who was fired from House of Cards before its final season in 2017 amidst multiple sexual misconduct allegations, has consistently denied the accusations against him.
Spacey’s attempt to overturn the initial $31 million judgment was unsuccessful in 2022. The judge overseeing the appeal stated that Spacey failed to demonstrate that the damages award was irrational or that the case was a close one. The $31 million judgment was intended to cover the losses incurred by MRC after scrapping the parts of the final season that had already been filmed with Spacey and starting over.
In addition to the $1 million settlement, MRC and Spacey have reportedly agreed to collaborate in an effort to recover the remaining $30 million from MRC’s insurance company. However, this has proven to be a challenging task for MRC. The company filed lawsuits against Fireman’s Fund and Lloyd’s of London in 2022, claiming that their cast insurance policies covered the Spacey situation. MRC argued that Spacey’s decision to seek treatment for sex addiction after the allegations emerged fell under the purview of these policies. Nevertheless, the court initially ruled against MRC, stating that the insurance policies were not intended to cover such claims.
As part of the new settlement, Spacey has agreed to testify in the insurance case, provide his medical records, and undergo examinations by doctors from both sides. MRC recently filed a motion against Fireman’s Fund, while their case against Lloyd’s of London has been completely dismissed.
