By Max H. Stern and Holden Benon
Yesterday, the US 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). 
Although Nevada regulation ruled the evaluation, the courtroom’s written opinion leaned closely on appellate authorities that utilized California regulation (particularly, the California Court docket of Attraction’s Inns-by-the-Sea choice and the Ninth Circuit’s Mudpie choice). The Circus Circus courtroom 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. “Quite,” the courtroom noticed, “the allegations surrounding Circus Circus’s closure are based mostly on the native Keep at House Orders.” Citing Mudpie, the courtroom additionally held that Circus Circus did not allege it suffered a direct bodily lack of its property, reasoning the loss should be attributable to 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 choices that got here down final yr. Within the instances which might be nonetheless at the moment pending, the percentages definitely appear to favor the carriers.