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Kevin Spacey’s $35 Million Breach Of Contract Judgment Was Just Wiped Clean In A Very Interesting Way

Back in November 2021, Kevin Spacey was ordered to pay Media Rights Capital (the company that produced “House of Cards”) $31 million in damages. The long story short of the case was that Kevin wasn’t just an actor in the series; he was a producer. His actions and public controversies forced MRC to scrap an entire season’s worth of scripts and plans after it had filmed two episodes of what would have been “House of Cards'” sixth season. MRC was then forced to scramble to put together an alternate sixth and final season that consisted of just eight episodes instead of the planned 13. All of these adjustments were extremely expensive, and as a producer, MRC claimed that Kevin “…breached provisions of both the Acting and Executive Producing Agreements that set standards for his workplace conduct, including by breaching MRC’s Harassment Policy.”

So, he was ordered to compensate MRC to the tune of $31 million. He appealed that judgment, but in August 2022, his appeal was denied. That meant Kevin personally owed MRC $31 million. Kevin did not pay the judgment, and by early 2024, with penalties, it had grown to $36 million.

Even at his all-time career peak, it’s unclear that Kevin Spacey’s net worth would have enabled him to cut a $31 million check. He almost certainly could not afford anywhere near $31 million by late 2021 after his career exploded and he was ostracized from Hollywood.

That perhaps explains why he allegedly stopped paying the mortgage and HOA on a $6 million waterfront condo in Baltimore around the time the judgment was first laid down. That condo will head to a foreclosure auction later this month.

However! For the first time in several years, there is some good news in Kevin Spacey’s world… And his savior is none other than… Media Rights Captial.

Chris J Ratcliffe/Getty Images

As first reported by entertainment business news site Puck, Kevin just entered into a very interesting arrangement with Media Rights Capital. According to the terms of their agreement, MRC is allowing Kevin to pay just $1 million to the company rather than the full $36 million he owed. In exchange, Kevin will join forces with MRC in its battle with the insurance companies Lloyds of London and Fireman’s Fund.

Kevin will testify on MRC’s behalf in lawsuits that aim to extract $150 million plus punitive damages from the insurance companies.

In other words, MRC is gambling that with Spacey’s testimony and cooperation, their suit against those big insurance companies has a better chance of being successful. And if MRC wins those legal battles, $150 million is more than $36 million—simple math.

The case hinges on a somewhat tricky argument. MRC’s position is that Spacey’s behavior that led to his firing from “House of Cards” was a result of his sex addiction, which it claims is a sickness that should be covered under insurance policies provided by Lloyds and Fireman’s Fund. The insurers disagree, and that will serve as the main point of contention in the case as it goes forward.

The trial is set for this summer, and Spacey will testify to his sex addiction and release medical records from treatment he received at The Meadows, where figures like Harvey Weinstein and Tiger Woods also received treatment and rehab for sex addiction.

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