Judge Vacates Nearly $31 Million Arbitration Award Against Kevin Spacey After Settlement
TL;DR
- A Los Angeles judge has vacated a $30.9 million arbitration award against Kevin Spacey.
- Both Spacey and 'House of Cards' producer MRC jointly requested vacatur following a confidential settlement.
- Each party will cover its own legal fees and neither is declared the prevailing party.
Overview
A large arbitration award previously granted to 'House of Cards' producer MRC against actor Kevin Spacey has been vacated by a Los Angeles Superior Court judge. This follows a confidential settlement agreement reached between Spacey and MRC, ending a high-profile dispute stemming from allegations of sexual misconduct on set.
What Happened
In October 2020, an arbitrator awarded MRC nearly $31 million in damages, fees, and costs, finding that Spacey's alleged sexual misconduct constituted a breach of his acting and executive producing contracts.
Judge Mel Red Recana had confirmed the award in August 2022. However, after Judge Virginia Keeny inherited the case in 2024, she granted a request by both parties to vacate the award based on their December 2023 settlement, the details of which remain confidential.
As part of the settlement terms, each side is responsible for its own legal fees, and no prevailing party is declared.
Spacey's attorneys argued the arbitrator exceeded his authority, but further legal argument was rendered moot by the court's acceptance of the joint settlement request.
Context
The dispute emerged after 2017 media reports alleged a pattern of sexual misconduct by Spacey against young crew members. MRC investigated and terminated Spacey's contracts, leading to the arbitration.
This case underscores the potential for parties to resolve arbitration awards through post-award settlement and shows judicial discretion to vacate awards if both sides agree within certain legal parameters.
Why It Matters
- The vacatur of the $31 million award illustrates how arbitration outcomes may be set aside by courts if both sides reach post-award settlement.
- The confidential nature of the settlement leaves unresolved questions about the appropriateness of the damages and the underlying allegations, but ends protracted proceedings between the parties.