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Court decisions for FM Global unit in dispute with Mohawk casino



A Mohawk casino that closed its doors in March 2020 after a COVID-19 case was reported at a nearby college could not recover during its FM Global unit policy & # 39 ;s business interruption coverage, a New York district court said Thursday. .

The Saint Regis Mohawk Tribe, which operates Mohawk Gaming Enterprises LLC on reservation land in Franklin County, New York, closed the Akwesasne Mohawk Casino Resort after a virus case was reported at St. Lawrence College, 7.2 miles across the Canadian border in Ontario, according to the decision of the U.S. District Court in Utica, New York, in Mohawk Gaming Enterprises, LLC v. Affiliated FM Insurance Co.

Mohawk filed a business break claim with FM Global unit Affiliated FM Insurance Co.

As the 30-day deadline for investigating and resolving damages approached unanswered, Mohawk filed a lawsuit against the insurer on charges including breach of contract and fraud, according to the decision. "Thus, the original burden on the plaintiff is to assert facts which could probably establish that the business interruption suffered by him is' the direct result of physical damage of the insured type ',' either at the casino or in college, according to the judgment, [1

9659002] 'As other courts have explained, however, the introduction of the "physical" modifier in a phrase such as "direct result of physical injury" introduces a requirement that the injury is in fact tangible in nature. A "mohawk gaming lawyer, Burtonsville, Maryland-based Marsha K. Schmidt, said in a statement," We are very disappointed with this result because the contract If one defines a contagious disease as causing property damage.

'The Court did not take this fact into account and instead followed decisions which are simply not applicable. We are considering our options. "

FM Global said in a statement," It is unfortunate when legal issues arise, because we strongly believe that our insurances are clear in the coverage. ”

More insurance and news about risk management about the coronavirus crisis here .


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