California appeals court has upheld a lower court ruling that certain underwriters at Lloyd’s do not owe coverage to heavy metal band Metallica for millions of dollars lost in the economic slowdown of the COVID-19 pandemic.
Metallica, known as Frantic Inc., sought coverage for lost income from a canceled series of shows in South America and asked Lloyd’s to cover the losses. It denied coverage, citing a communicable disease exclusion in the policy.
Frantic then filed suit, alleging among other things, breach of contract. A trial court granted summary judgment in favor of Lloyd’s, citing the exclusion as a matter of law, the court opinion said.
On appeal, Frantic contended the trial court erred because it conflated “virus” and “disease;” ignored a second
reasonable interpretation of ambiguous phrases in the exclusion and improperly decided the issue, it said.
The band’s attorneys also argued the case should go before a jury because it could have concluded a cause other than COVID-19 could be the “efficient proximate cause’ of its loss, the ruling said.
Frantic further contended a jury could conclude COVID-19 was not the cause of its losses as “a matter of science” because governments lifted travel and other restrictions, concert venues reopened and Metallica was able to perform its South American shows in April and May 2022 despite the ongoing presence of the virus.
Judge Maria Stratton, citing another music star, Taylor Swift, wasn’t buying it.
“There can be no doubt that in March 2020, the South American countries suspended visas and then closed theirnborders due solely to COVID-19 or the fear or threat thereof. The three countries set to host Frantic expressly stated that COVID-19 was the reason for their orders.
“Further, to paraphrase Taylor Swift: ‘We were there. We remember it all too well’.”
The appeals court also said Frantic’s interpretation of the virus exclusion would have rendered it meaningless.
An attempt to obtain comment from Lloyd’s was not immediately successful.
A state district court judge denied a request by attorneys for certain underwriters at Lloyd’s to dismiss a lawsuit brought by heavy metal band Metallica, which sued to recover pandemic-related losses from canceled international tour dates last year.