Ninth Circuit Affirms Factory Mutual Victory in Coverage Dispute with Sacramento Kings

"Simpson Thacher secured a Ninth Circuit affirmation of summary judgment for Factory Mutual Insurance Company in Sacramento Downtown Arena LLC et al. v. Factory Mutual Ins. Co. The court held that an $850 million property and business interruption policy’s Contamination Exclusion barred coverage for alleged COVID-19 losses claimed by the Sacramento Kings-related entities."

Simpson Thacher represented Factory Mutual Insurance Company in an appellate matter against Sacramento Downtown Arena LLC and related entities, including the Sacramento Kings NBA franchise. On November 17, 2025, the Ninth Circuit affirmed the district court’s grant of summary judgment in favor of Factory Mutual in a coverage dispute. The Sacramento Kings sought coverage under an $850 million property insurance and business interruption policy for alleged business losses arising from the COVID-19 pandemic. In affirming the entry of summary judgment for Factory Mutual, the Ninth Circuit held that the policy’s Contamination Exclusion barred coverage in full. The matter is captioned Sacramento Downtown Arena LLC, et al. v. Factory Mutual Ins. Co., No. 24-7165 (9th Cir.). Simpson Thacher represented Factory Mutual Insurance Company with a team composed by: Bryce Friedman, Laura Lin, Matthew Penny and Sarah Forbes.

Ninth Circuit Affirms Factory Mutual Victory in Coverage Dispute with Sacramento Kings

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