Federal appellate courts have ruled in favor of American International Group Inc. and FM Global entities in disputes over covid-19-related business interruptions filed by a Las Vegas casino and a real estate development and entertainment company in Baltimore.
The plaintiff Circus Circus LV LP, a 2.8 million square foot casino in Las Vegas, unsuccessfully appealed a judgment of the U.S. District Court in Las Vegas in a dispute over business interruption against the AIG unit AIG Specialty Insurance Co., according to Friday’s decision of 9: e U.S. Circuit Court of Appeals in San Francisco i Circus Circus LV, LP v. AIG Specialty Insurance Co.
“The district court rightly considered that Circus Circus did not reasonably claim that it had suffered direct physical damage to its property in accordance with the terms of the policy,”; the judgment stated.
“Despite Circus Circus’ claim that the covid-19 virus was present on its premises, it has not identified any direct physical damage to its property caused by the virus that led to the casino’s closure,” the ruling said.
Lawyers in the case have not responded to a request for comment.
The 4th U.S. Circuit Court of Appeals in Richmond, Virginia, issued a one-piece decision Tuesday that upholds a decision by the U.S. District Court in Baltimore in favor of the FM Global unit Affiliated FM Insurance Co. Inc. in Cordish Cos. Inc. v. Affiliated FM Insurance Co.
“We have reviewed the protocol and find no reversible error,” the verdict said.
The Court of Appeal said that it refrained from oral arguments in the case “because facts and legal claims are sufficiently represented in the material before this court and the argument would not help the decision-making process.”
The lawyers in the case had no comments or did not respond to a request for comment.