Business interruption coverage denial and bad faith suit filed on behalf of Nevada and Colorado casino owners

Levin Sitcoff Waneka attorneys Nelson Waneka and Bradley Levin have sued Affiliated FM Insurance Company (AFM) in federal district court in Colorado on behalf of Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (“Monarch”) claiming wrongful denial of business interruption coverage and other losses and damages due to the government-mandated closure of Monarch’s  businesses and the ongoing COVID-19 health pandemic.

Monarch owns and operates the Atlantis Casino Resort Spa in Reno, Nevada, and the Monarch Casino Black Hawk in Black Hawk, Colorado.

“Rather than expeditiously investigating Monarch’s claim in good faith and confirming coverage, AFM unfortunately responded with a letter-writing campaign that did not meaningfully address Monarch’s claims and that was rife with deficiencies, misstatements, and contradictions,” Levin said.

Ignoring detailed facts, scientific evidence and express policy language set forth in Monarch’s claim letters meticulously demonstrating that payment for these losses is due under various coverages in the policy, AFM erroneously concluded that coverage was not afforded “since AFM does not consider the presence of COVID-19, or the virus that causes it, to be “physical loss or damage,”  the suit says.

“Faced with a purposeful and concerted attempt to avoid payment of claims, Monarch was left with no choice but to commence litigation,” Waneka said.