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Universal, Insurer in Court Battle Over Meaning of 'War'

Atlantic Specialty Insurance undeniably breached the insurance policy for the TV series Dig when it denied coverage for the additional expenses Universal Cable Productions incurred relocating production from Israel in 2014 due to violence related to the Israeli-Palestinian conflict, Universal…

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said in a motion (in Pacer) for partial summary judgment. In its filing Monday in U.S. District Court in Los Angeles, Universal said it sought an order dismissing Atlantic's affirmative defenses that cite coverage exclusions for war, war-like conditions, insurrections or use of weaponry. Universal said the war exclusion isn't applicable because the Palestinian organization Hamas can't be established as a sovereign or quasi-sovereign entity, and the insurrection assertion isn't applicable because it would require showing Hamas was specifically interested in overthrowing the Israeli government. In a dueling motion (in Pacer) for summary judgment or partial summary judgment filed Monday, Atlantic said that particular burst of violence killed thousands and was commonly called a war, including by NBC media outlets -- with Universal and those outlets being subsidiaries of NBCUniversal Media. It also said that though the U.S. lists Hamas as a terrorist organization, "that does not mean Hamas cannot be involved in a war." And it said it's entitled to summary judgment on Universal's claim of breach of implied covenant of good faith and fair dealing, saying it didn't breach the insurance contract and alternately, a bad faith claim can't stand under California law as long as Atlantic's position about the claim was reasonable.