Kirk Pasich, Pamela Woods, Kayla Robinson, and Jacquelyn Heitman of Pasich LLP, represent Always Smiling.
Attorneys for Always Smiling assert that the lower court “erroneously” found that the insurer did not owe coverage for its production delays amid the pandemic, even though Judge Olguin specifically found that Always Smiling “failed to allege a covered loss under a film producers risk policy.”
The circuit brief filed by Always Smiling, claims that the lower court “failed to properly consider the facets of the unique coverage provided by the policy” or “incorrectly relied on rulings addressing coverage for pandemic-related losses under property policies that require “direct physical loss of or damage to property.”
In addition to its covid-related losses, the production company seeks damages for bad-faith handling of its claims. According to Always Smiling, the court’s ruling regarding coverage was erroneous, so the dismissal of its bad faith claim is also erroneous.
The production company is also arguing that it is entitled to coverage under the policy’s provision for mitigation of loss, which it says required Chubb to use due diligence to avoid loss.
