West Flagler Associates, the holding company of the Florida gaming venue that holds Magic City Casino and Flagler Dog Track suing several insurances provided. West Flagler Associates claims that the insurance companies provide sugar-coated coronavirus-related claims but showcase conspiratorial traits.
In the case of West Flagler Associates versus Indian Harbor Insurance Company, filed in the sessions of the Supreme Court of the State of New York, West Flagler Associates asserts four examples of four insurance companies that offer phony claims for pandemic related losses.
West Flagler Associates’ argument in the lawsuit that the insurance policies provided by the insurance providers did not cover stipulations regarding the loss obtained from contagions or pandemics.
The prosecutors of West Flagler’s Associates say that the 4 insurance firms namely – Indian Harbor, Ategrity, Great Lakes, and Hallmark, have contrived to add provisions after the Miami city forced the casinos and racing tracks to shut down temporarily during March 2020.
As per the statement written in the prosecutor’s complaint, “In reliance on the coverage in defendant’s insurance policies, plaintiff paid millions of dollars in payroll to its employees while shut down by government orders, and incurred great expenses to resume and maintain business operations. Despite agreeing to cover exactly those kinds of losses, defendants have wrongfully denied coverage. ”
The alleged quartet insurance companies were supposed to cover losses up to $25 million, as per the legal document. The prosecutors filed the case in New York because of the provisions mentioned in various policies.
Insurance company’s conspiracy claims
Magic City Casinos has mentioned seven counts against the insurance companies in their legal documentation.
In addition to the conspiracy, the complaints also include breach of contract and tortious interference, and violation of New York business law. Giving weightage to the conspiracy claims, the plaintiff says that the updated insurance policies contained remarkably used language to refuse to cover for losses incurred due to COVID-19 and deny the entire pandemic claims.
As per the official statement in the complaint, “Tellingly, defendants changed their subsequent insurance policies with plaintiff by expressly excluding coverage of losses caused by viruses. That change demonstrates that the policies do not exclude such coverage or, at a minimum, are unclear as to such coverage, such ambiguity must be resolved in favor of coverage for the insured. ”
West Flagler requested the court that the judge declare Indian Harbor, Hallmark, Great Lakes, and Ategrity obligated to make reimbursements on the financial claims. The plaintiff wishes to pursue jury trials for other complaints.
The issue seems common during the pandemic
West Flagler is not the first company to file a suit against insurance companies in the wake of the COVID-19 pandemic.
Since the start of the pandemic, many casino operators have charged legal suits against insurance companies for conspiracy.
Las Vegas billionaire Phil Ruffin’s Circus Circus sued American International Group (AIG), his Treasure Island also filed a legal complaint against the policies instigated by the insurance companies.
Caesars Entertainment in March 2021, filed a $2 billion lawsuit against different insurance companies which included Chubb, Allianz, Aspen, and Lloyds of London, claiming those providers refused to cover for the coronavirus payouts.
