According to Deadline, the lawsuit was filed at a court in California on Monday.
The insurer (Federal Insurance Company) reportedly had a $100 million policy with Paramount but paid out only $5 million despite far greater losses.
Mission: Impossible 7 has has faced multiple production delays and shutdowns due to the COVID-19 pandemic. Filming initially began in Venice, Italy in February 2020 but shutdown twice before relocating to the UK.
The film’s most recent and seventh shutdown was in June, after a member of the production tested positive for COVID-19.
“Federal arbitrarily categorized several Paramount’s losses as subject to only one limited category of coverage (which provided for coverage of just $1 million in connection with each single loss), and unjustifiably refused to cover other losses altogether.” Read the filing.
“Federal paid only a small portion of Paramount’s losses, denying coverage for the majority of them. By doing so, Federal beached the parties’ contract. Furthermore, Federal acted unreasonably, choosing to favour its interests over those of its insured, tortiously breaching the implied covenant of good faith and fair dealing.”
Tom Cruise stars in the latest installment, once again reprising the role of Ethan Hunt. The 59-year-old actor is also producing the new feature and was recorded late last year scolding crew members for flaunting covid regulations on set.
Mission: Impossible 7 is due for release on May 27, 2022.
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