Judge rejects motion to dismiss, Metallica suit against insurer moves forward

Metallica can continue its lawsuit against Lloyd's of London for coverage of the last six shows of the band's 2020 South American tour that were canceled due to the pandemic, Los Angeles County Superior Court Judge Holly J. Fujie ruled Oct. 1, rejecting the insurer's demurrer.

"The court held that the complaint sufficiently alleged that travel restrictions, the duty to mitigate damages, the need to flatten the curve, and stay-at-home orders may be the efficient proximate cause of Metallica's losses," said Jeffrey L. Schulman, a partner with Pasich LLP, which represents the band.

"The court also noted our argument that the virus/disease may not be the cause of the loss because it still exists and yet, travel and gathering restrictions have eased and concerts are again being performed. The decision also cited our allegation that the insurers cannot identify the efficient proximate cause of the loss because they conducted no meaningful investigation before denying coverage."

Locke Lord LLP Attorney Jamie Cheng, who represents Lloyd's, could not be reached for comment Monday.

The iconic rock 'n' roll band still faces an uphill battle in court. Judges have almost exclusively sided with the insurers in fights over coverage of losses that were due to government-ordered pandemic restrictions. Frantic Inc. v. Certain Underwriters at Lloyd's, London, 21STCV21403, LA Sup. Ct. (filed June 7, 2021).

In his response to the motion to dismiss, Schulman stated the band purchased a "cancellation, abandonment and nonappearance insurance" policy to protect it in the event that any portion of the tour was canceled or postponed. He said the insurance company denied Metallica's entire claim, citing an exclusion that purportedly bars coverage for "any loss directly or indirectly arising out of, contributed to by, or resulting from ... communicable disease or fear or threat thereof," according to a statement.

The matter is now proceeding to discovery.