‘House of Cards’ Producer Wins $31 Million in Arbitration Against Kevin Spacey

An arbitrator has ordered Kevin Spacey and his firms to pay nearly $31 million to MRC, the manufacturing firm behind “House of Cards,” after discovering that Spacey breached his contract by violating the corporate’s sexual harassment coverage.

MRC severed its relationship with Spacey and scrapped a season of the present in 2017, after a number of folks got here ahead to allege a sample of sexually predatory conduct.

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MRC filed a petition on Monday in Los Angeles Superior Court to substantiate the arbitration award, after the award was upheld in a confidential enchantment.

Spacey and his firms, M. Profitt Productions and Trigger Street Productions, had been ordered to pay $29.5 million in damages plus $1.2 million in attorneys’ charges and $235,000 in prices.

Spacey was among the many first main Hollywood figures to be accused within the wake of the Harvey Weinstein scandal in October 2017. On Nov. 2, 2017, CNN reported that Spacey — the star and an government producer of “House of Cards” — had created a “toxic” surroundings by making crude feedback and interesting in non-consensual touching of younger male staffers, citing eight manufacturing sources. MRC mentioned it had “no knowledge whatsoever” of Spacey’s alleged on-set misconduct previous to the CNN report.

Spacey was instantly suspended pending an inner investigation. The producers finally terminated Spacey’s contract, and his character, Frank Underwood, was written out of the present.

At the time of Spacey’s suspension, two episodes of the sixth season had been in manufacturing, and a lot of the season had been written. The two episodes had been shelved and the manufacturing began over, finally delivering an eight-episode season quite than the 13 episodes that had been deliberate.

MRC filed the confidential arbitration demand in January 2019, searching for to get well from Spacey the prices of scrapping the season and beginning over. Spacey filed a counterclaim, accusing the manufacturing firm of wrongfully terminating his contract and breaching its obligations to “pay or play” below the settlement.

Attorneys on either side took depositions from extra 20 folks, main as much as an eight-day confidential arbitration listening to in February 2020. The arbitrator issued a 46-page ruling in July 2020, which stays confidential, discovering in MRC’s favor.

“With one exception, the Arbitrator found the third party witnesses to be credible, and found the allegations against Spacey to be true,” the petition states. “The Arbitrator found that Spacey’s conduct constituted a material breach of his acting and executive producing agreements with MRC, and that his breaches excused MRC’s obligations to pay him any further compensation in connection with the show.”

According to the petition, the Arbitrator additionally discovered that “Spacey’s egregious breaches of contract” made him and his firms chargeable for MRC’s tens of thousands and thousands of additional prices.

MRC issued an announcement thanking its attorneys — Michael Kump and Gregory Korn of Kinsella Weitzman Iser Kump Holley LLP — for his or her work on the case.

“The safety of our employees, sets and work environments is of paramount importance to MRC and why we set out to push for accountability,” the corporate mentioned.

Spacey’s lawyer didn’t instantly reply to a request for remark.

Spacey’s authentic accuser, Anthony Rapp, sued him in federal court docket final 12 months. That case remains to be pending, however a number of different instances towards the actor have been dropped, together with a legal case in Massachusetts and a civil case in Los Angeles. In the Los Angeles case, a legal investigation was additionally dropped after the accuser died.

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