Wednesday, March 22, 2023
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Protection Was Not Within the Playing cards for Circus Circus On line casino, Holds Ninth Circuit – Duane Morris Insurance coverage Regulation

By Max H. Stern and Holden Benon

Yesterday, america Court docket of Appeals for the Ninth Circuit issued a succinct however well-reasoned choice that there was no protection for a Las Vegas Lodge & On line casino’s COVID-19-related enterprise interruption loss below the protection supplied by an “all dangers” insurance coverage coverage. See Circus Circus LV, LP v. AIG Specialty Ins. Co., No. 21-15367 (ninth Cir. Apr. 15, 2022).

Despite the fact that Nevada legislation ruled the evaluation, the court docket’s written opinion leaned closely on appellate authorities that utilized California legislation (specifically, the California Court docket of Attraction’s Inns-by-the-Sea choice and the Ninth Circuit’s Mudpie choice).  The Circus Circus court docket adopted the Inns-by-the-Sea causation evaluation in holding that, regardless of Circus Circus’ allegation that the coronavirus was current on its premises, it did not establish any direct bodily injury to its property brought on by the virus which led to the On line casino’s closure. “Slightly,” the court docket noticed, “the allegations surrounding Circus Circus’s closure are based mostly on the native Keep at Dwelling Orders.”  Citing Mudpie, the court docket additionally held that Circus Circus did not allege it suffered a direct bodily lack of its property, reasoning the loss should be because of a “distinct demonstrable, bodily alteration of the property.”

The  Circus Circus choice provides to the road of appellate authorities which have adhered to the identical reasoning articulated within the preliminary COVID-19 appellate selections that got here down final 12 months.  Within the circumstances which might be nonetheless presently pending, the chances definitely appear to favor the carriers.



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