By Max H. Stern and Holden Benon
Yesterday, the USA Court docket of Appeals for the Ninth Circuit issued a succinct however well-reasoned resolution 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). 
Although 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 resolution and the Ninth Circuit’s Mudpie resolution). 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 determine any direct bodily harm to its property brought on by the virus which led to the On line casino’s closure. “Fairly,” 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 have to be because of a “distinct demonstrable, bodily alteration of the property.”
The Circus Circus resolution 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 instances which might be nonetheless at the moment pending, the percentages definitely appear to favor the carriers.