SAG Loses Battle Over ‘Leave It To Beaver’ Legal Fees With Insurance Company

Lesson for SAG – Don’t mess with the Beav or at least anyone from the classic show. First, the union had to settle a 2007 class action suit from Ken Osmond, who played Eddie Haskell on Leave It To Beaver, and other actors accusing SAG of not properly paying out $8.1 million in overseas royalties. Today the union lost its summary judgment attempt to get Federal Insurance Company to reimburse them over $300,000 in legal fees that they paid out to Osmond in 2010 from the royalties case (read it here). “In this case, SAG’s own coverage position and assertions lead to but one result, which is that, insofar as SAG is and was, prior to the Osmond action, obligated to account for and distribute the foreign levy funds to the plaintiff class, SAG fails to establish that the $330,000 award arises from a ‘covered’ claim under the policy,” wrote Judge Dolly Glee today. It has taken almost two years to get this dispute resolved and probably a few bucks in new fees – and that’s it the union doesn’t appeal. The union first filed their breach of contract and tortious breach of the covenant of good faith and fair dealing complaint against the insurer on July 22, 2011. On the upside for the union, the US District judge did agree that plaintiff SAG could now be known as SAG-AFTRA in the suit. Good, as that’s who is going to be writing the checks in the latest foreign royalties lawsuit they’re facing.

Related: SAG-AFTRA Sued For Witholding Foreign Residuals & Rewarding Officials