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Simpson Thacher Prevails In Ninth Circuit Appeal For Factory Mutual In Coverage Dispute Against NBA Franchise

11.17.25

On November 17, 2025, Simpson Thacher won an appellate victory for Factory Mutual Insurance Company, securing a decision from the Ninth Circuit affirming summary judgment for Factory Mutual in a coverage dispute against the Sacramento Kings NBA franchise. The Kings sought coverage under an $850 million property insurance and business interruption policy for purported business losses stemming from the COVID-19 pandemic. In affirming the district court’s entry of summary judgment for Factory Mutual, the Ninth Circuit held that the policy’s “Contamination Exclusion” barred coverage in full.

The case is Sacramento Downtown Arena LLC, et al. v. Factory Mutual Ins. Co., No. 24-7165 (9th Cir.). 

Factory Mutual was represented by Bryce Friedman, Laura Lin, Matthew Penny and Sarah Forbes.