Case 2:20-cv-01240-JAD-NJK Document 1 Filed 07/02/20 Page 1 of 16
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`Renee M. Finch
`Nevada State Bar 13118
`MESSNER REEVES LLP
`8945 W. Russell Road, Suite 300
`Las Vegas, Nevada 89148
`Phone:
`(702) 363-5100
`rfinch@messner.com
`Email:
`Attorneys for Plaintiff, Circus Circus, LV, LP
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`UNITED STATES DISTRICT COURT
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`DISTRICT OF NEVADA
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`Plaintiff,
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`CIRCUS CIRCUS LV, LP,
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`v.
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`AIG Specialty Insurance Company,
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`Defendant.
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`CASE NO.
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`COMPLAINT
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`Plaintiff, Circus Circus, LV, LP (“Circus Circus”), files this Complaint for damages and
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`declaratory judgment against Defendant, AIG Specialty Insurance Company (“AIG”), alleging the
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`following:
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`I.
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`INTRODUCTION
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`1.
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`This diversity action for breach of contract and declaratory judgment arises out of
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`Circus Circus’s claim of insurance coverage under an “all risks” insurance policy sold by AIG to
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`Circus Circus.
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`2.
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`Despite agreeing to cover Circus Circus for all risks of physical loss or damage property
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`resulting from perils not specifically excluded, and Circus Circus’s resulting loss of business income
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`and extra expense, AIG refuses to stand by the insurance policy that it wrote and sold and honor its
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`contractual undertakings. Instead, AIG relies on sleight-of-hand, distortions of fact and contortions of
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`{04246510 / 1}1
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`Case 2:20-cv-01240-JAD-NJK Document 1 Filed 07/02/20 Page 2 of 16
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`law to escape from Circus Circus’s covered claim. But no illusion or death-defying feat can alter the
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`plain language of AIG’s policy and the broad all risks coverage that it provides.
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`II.
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`THE PARTIES
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`3.
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`Plaintiff Circus Circus LV, LP is a limited partnership organized under the laws of the
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`State of Nevada, with its principal place of business at 2880 Las Vegas Boulevard South, Las Vegas,
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`NV 89109.
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`4.
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`Defendant AIG Specialty Insurance Company is an Illinois insurance company, with
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`its principal place of business located in the State of New York.
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`5.
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`AIG is authorized to do business and issue insurance policies in the State of Nevada.
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`III.
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`JURISDICTION & VENUE
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`6.
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`This Court has jurisdiction over this action pursuant to 28 U.S.C. § 1332, as the parties
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`are completely diverse in citizenship and the amount in controversy exceeds $75,000, exclusive of
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`interests and costs.
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`7.
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`Venue is proper in this District under 28 U.S.C. § 1391 because Circus Circus’s
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`principal place of business is in this District and a substantial portion of the events and omissions
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`giving rise to the claims and losses that occurred within the District.
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`IV.
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`FACTUAL BACKGROUND
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`8.
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`Circus Circus is a sprawling 2.8 million square foot casino complex situated on over
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`70 acres of land with a physical address of 2880 Las Vegas Boulevard South, Las Vegas, Nevada. It
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`has over 1,100 gaming attractions, nearly 3,800 rooms, and employs more than 2,200 individuals. The
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`number of guests that Circus Circus welcomes onto its property is staggering—over 5,800 people per
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`day.
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`9.
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`AIG is an insurance company that sold an “all risks” insurance policy to Circus Circus
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`providing coverage to Circus Circus against “all risks of direct physical loss or damage to Insured
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`Property [i.e., the entire casino complex] from a Covered Cause of Loss.”1 (See Policy No.
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`018257119, attached as Exhibit A, at CCPOLICY_0018 (the “Policy”).)
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`1 Terms defined in the Policy are signified by the use of bold typeface. Unless otherwise stated, the use of bold typeface
`signifies the use of same in the Policy.
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`{04246510 / 1}2
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`Case 2:20-cv-01240-JAD-NJK Document 1 Filed 07/02/20 Page 3 of 16
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`10.
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`As used in the Policy’s insuring agreement, the term “physical loss” is separate, distinct
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`and has an independent meaning from the term “damage.”
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`11.
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`In the Policy, the term “Covered Cause of Loss” is defined as “peril or other type of
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`loss, not otherwise excluded under this policy.” Exhibit A, at CCPOLICY_0042.
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`12.
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`13.
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`14.
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`The term “peril” is not defined in the Policy.
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`The phrase “other type of loss” is not defined in the Policy.
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`The Policy also covers Circus Circus’s business interruption losses that result from a
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`Covered Cause of Loss (i.e., a “peril or other type of loss”). Exhibit A, at CCPOLICY_0025.
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`15.
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`The Policy provides up to $500 million in coverage for physical loss or damage of
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`property and up to $96,774,307 in coverage for loss of business income. Exhibit A, at
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`CCPOLICY_0001, CCPOLICY_0061.
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`16.
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`17.
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`The Policy has an effective term of December 20, 2019 through December 20, 2020.
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`In exchange for AIG’s agreement to take on Circus Circus’s risk of loss, AIG charged
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`Circus Circus a $1.6 million premium.
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`18.
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`Circus Circus has satisfied all conditions precedent to coverage under the Policy
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`including the payment of all premiums.
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`A.
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`19.
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`COVID-19 is a Deadly Communicable Disease
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`COVID-19 is a deadly communicable disease that has already infected over 2.6 million
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`people in the United States and caused more than 127,000 deaths.2
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`20.
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`The CDC estimates that infection rates for COVID-19 are likely at least ten times
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`higher than reported.3
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`21.
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`22.
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`There is no publicly available vaccine for COVID-19.
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`The World Health Organization (“WHO”) has declared the COVID-19 outbreak a
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`pandemic, and President Trump has declared a nationwide emergency due to the public health
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`emergency caused by the COVID-19 outbreak in the United States.
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`2 See https://www.cdc.gov/coronavirus/2019-ncov/cases-updates/cases-in-us.html (last viewed July 1, 2020).
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`3 See https://www.nbcnews.com/health/health-news/cdc-says-covid-19-cases-u-s-may-be-10-n1232134 (last viewed July
`1, 2020).
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`Case 2:20-cv-01240-JAD-NJK Document 1 Filed 07/02/20 Page 4 of 16
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`23.
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`The incubation period for COVID-19—the time between exposure and symptom
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`onset—can be up to 14 days.4
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`24.
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`During this pre-symptomatic period, infected persons can be contagious and disease
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`transmission can occur before the infected person shows any symptoms or has any reason to believe
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`they are infected.5
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`25.
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`Not only is COVID-19 spread by human-to-human transfer, but the WHO has
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`confirmed that COVID-19 can exist on contaminated objects or surfaces.6
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`26.
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`According to a study documented in The New England Journal of Medicine, COVID-
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`19 was detectable in aerosols for up to three hours, up to four hours on copper, up to 24 hours on
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`cardboard, and up to three days on plastic and stainless steel.7
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`All of these materials are used by Circus Circus throughout its facilities and operations.
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`The study’s results suggest that individuals could become infected with COVID-19
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`through indirect contact with surfaces or objects used by an infected person, whether they were
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`symptomatic or not.8
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`B.
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`Orders Because of COVID-19, Physical Loss of Property, and Physical Damage
`to Property
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`29.
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`In an effort to slow the spread of COVID-19 and as a direct result of a Covered Cause
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`of Loss to property located within 1 mile of Circus Circus, federal, state and local governments
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`imposed unprecedented directives, referred to as “Stay at Home Orders,” prohibiting travel into the
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`4 See https://www.who.int/docs/default-source/coronaviruse/situation-reports/20200402-sitrep-73-covid-
`19.pdf?sfvrsn=5ae25bc7_2 (last viewed July 1, 2020).
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`5 See https://www.who.int/docs/default-source/coronaviruse/situation-reports/20200402-sitrep-73-covid-
`19.pdf?sfvrsn=5ae25bc7_2 (“In a small number of case reports and studies, pre-symptomatic transmission has been
`documented through contact tracing efforts and enhanced investigation of clusters of confirmed cases. This is supported
`by data suggesting that some people can test positive for COVID-19 from 1-3 days before they develop symptoms. Thus,
`it is possible that people infected with COVID-19 could transmit the virus before significant symptoms develop.”) (last
`viewed July 1, 2020).
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`6 See https://www.who.int/news-room/commentaries/detail/modes-of-transmission-of-virus-causing-covid-19-
`implications-for-ipc-precaution-recommendations (“[T]ransmission of the COVID-19 virus can occur by direct contact
`with infected people and indirect contact with surfaces in the immediate environment or with objects used on the infected
`person”) (last viewed July 1, 2020).
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`7 See https://www.nih.gov/news-events/news-releases/new-coronavirus-stable-hours-surfaces (last viewed July 1, 2020);
`see also https://www.who.int/news-room/commentaries/detail/modes-of-transmission-of-virus-causing-covid-19-
`implications-for-ipc-precaution-recommendations (last viewed July 1, 2020).
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`8 Id.
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`Case 2:20-cv-01240-JAD-NJK Document 1 Filed 07/02/20 Page 5 of 16
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`United States, requiring certain businesses to close and requiring residents to remain in their homes
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`unless performing “essential” activities.
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`30.
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`The Stay at Home Orders required businesses deemed “non-essential” to be closed. In-
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`person work was not permitted.
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`31.
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`32.
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`The Stay at Home Orders also severely affected businesses classified as “essential.”
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`The Stay at Home Orders have caused and are continuing to cause a total or partial
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`prohibition of access to Circus Circus.
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`33.
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`The Stay at Home Orders have caused and are continuing to cause the necessary partial
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`or total interruption of Circus Circus’s business operations.
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`34.
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`Although some have recently been relaxed, Stay at Home Orders remain in effect as of
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`the date of filing and have caused and continue to cause a total or partial prohibition of access to Circus
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`Circus and the necessary partial or total interruption of Circus Circus’s business operations.
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`35.
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`As a business that relies on materials and customers from right next door to across the
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`country to around the world, Circus Circus is subject to these various Stay at Home Orders.
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`36.
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`The physical loss and damage caused by COVID-19 and the threat of further physical
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`loss or damage caused by COVID-19 has had a devastating effect on Circus Circus’s business.
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`37.
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`Likewise, the Stay at Home Orders and the physical loss of Insured Property caused by
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`those Orders has had a devastating effect on Circus Circus’s business.
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`38.
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`On March 12, 2020, Nevada Governor Steve Sisolak declared a state of emergency in
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`the state of Nevada citing the presence of COVID-19 and its impact on lives and property. (See NV
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`Exec.
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`Decl.
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`of
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`Emergency,
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`dated
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`March
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`12,
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`2020,
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`http://gov.nv.gov/News/Emergency_Orders/2020/2020-03-12_-_COVID-
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`19_Declaration_of_Emergency/, attached as Exhibit B).
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`39.
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`Five days later, pursuant to his March 12, 2020, Declaration, Governor Sisolak further
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`ordered all gaming activities in the state to close at midnight on March 17, 2020. (See NV Exec.
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`Emergency Order, dated March 17, 2020, http://gov.nv.gov/uploadedFiles/govnewnvgov/
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`Content/News/Emergency_Orders/2020_attachments/2020-03-17-NV-Health-Reponse-COVID19-
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`Risk-Management-Initiative-2.pdf, attached as Exhibit C).
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`Case 2:20-cv-01240-JAD-NJK Document 1 Filed 07/02/20 Page 6 of 16
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`40.
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`As a direct result of COVID-19 and these Orders, Circus Circus closed its doors at
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`12:01 AM on March 18, 2020.
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`41.
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`Persons infected with COVID-19 were present at Circus Circus prior to March 18,
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`2020.
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`42.
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`In fact, during the period January 1, 2020, to March 18, 2020, Circus Circus employees
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`recorded more than 1,600 sick days. During that same period, Circus Circus had more than 337,000
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`registered guests from all over the world.
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`43.
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`On March 20, 2020, Governor Sisolak, again noting the need to protect property and
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`persons, ordered all non-essential businesses to close and restricted the activities of essential
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`businesses. (See NV Exec. Emergency Decl., Directive No. 3, dated March 20, 2020,
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`http://gov.nv.gov/News/Emergency_Orders/2020/2020-03-20_-_COVID-
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`19_Declaration_of_Emergency_Directive_003_(Attachments)/;
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`and
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`related
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`regulations,
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`http://gov.nv.gov/uploadedFiles/govnewnvgov/Content/News/Emergency_Orders/2020_attachments
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`/2020-03-20_COVID-19_DPS_DEM_EmergencyRegulations.pdf, attached as Exhibit D).
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`44.
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`On April 29, 2020, Governor Sisolak issued a Directive explaining, among other things,
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`the basis for the closure and Stay at Home Orders stating specifically that the ability of COVID-19 “to
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`survive on surfaces for indeterminate periods of time renders some property unusable and contributes
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`to contamination, damage, and property loss ….” (See NV Exec. Emergency Decl. Directive No. 16,
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`dated April 29, 2020, http://gov.nv.gov/News/Emergency_Orders/2020/2020-04-29_-_COVID-
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`19_Declaration_of_Emergency_Directive_016_(Attachments)/, attached as Exhibit E).
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`C.
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`45.
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`Circus Circus Notifies AIG of a Covered Claim
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`On March 20, 2020, Circus Circus notified AIG that it had experienced, and was
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`continuing to experience, a covered loss as a consequence of the physical loss and damage caused by
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`COVID-19 and the resulting Stay at Home Orders and other civil authority orders.
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`46.
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`On June 19, 2020, AIG sent Circus Circus a written denial of its claim setting forth the
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`reasons that AIG is refusing to pay the claim.
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`Case 2:20-cv-01240-JAD-NJK Document 1 Filed 07/02/20 Page 7 of 16
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`D.
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`47.
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`The “All Risks” Coverage Is Triggered
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`The “All Risks” Coverage AIG sold to Circus Circus provides that “[s]ubject to all of
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`the terms and conditions of this Policy, [AIG] insures [Circus Circus] against all risks of direct
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`physical loss or damage to Insured Property from a Covered Cause of Loss.” Exhibit A, at
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`CCPOLICY_0018.
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`48.
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`The Policy defines Covered Cause of Loss as “a peril or other type of loss, not
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`otherwise excluded under this Policy.” Exhibit A, at CCPOLICY_0042.
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`49.
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`COVID-19, a highly contagious disease for which there is no known vaccine, is a peril
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`not excluded under the Policy.
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`50.
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`51.
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`52.
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`53.
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`COVID-19, therefore, is a Covered Cause of Loss.
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`The Stay at Home Orders are a peril or other type of loss not excluded under the Policy.
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`The Stay at Home Orders, therefore, are Covered Causes of Loss.
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`Circus Circus experienced “direct physical loss” of its property from one or more
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`Covered Causes of Loss commencing at midnight on March 17, 2020, and continuing to the present.
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`54.
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`Circus Circus also experienced direct “physical damage” to its property because of
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`COVID-19. COVID-19 causes physical damage to property because it contaminates objects and
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`surfaces as described above.
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`55.
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`Circus Circus, therefore, experienced direct “physical damage” to its property from a
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`Covered Cause of Loss commencing on or about March 17, 2020, and continuing to the present.
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`E.
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`56.
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`The Policy’s Business Interruption Coverage (a.k.a. Time Element Coverage)
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`AIG Policy also covers the “actual loss of income sustained by the Insured during the
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`necessary partial or total interruption of the Insured’s business operations … directly resulting from a
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`Covered Cause of Loss ….” Exhibit A, at CCPOLICY_0025.
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`57.
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`The Policy states that, “[i]n the event the Insured is prevented … from continuing its
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`business operations or services and is unable … [t]o continue business operations or services … then
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`[AIG] shall be liable … for the actual loss of income sustained during the Period of Interruption.”
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`Exhibit A, at CCPOLICY_0025.
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`Case 2:20-cv-01240-JAD-NJK Document 1 Filed 07/02/20 Page 8 of 16
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`58.
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`Circus Circus’s business operations have been interrupted since March 18, 2020, as a
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`direct result of covered “peril or other type of loss.”
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`59.
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`The partial or total interruption of Circus Circus’s business operations remains
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`ongoing.
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`60.
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`Circus Circus has sustained and will continue to sustain loss of business income, incur
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`extra expense and sustain other insured losses as a result of the partial or total interruption of its
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`business.
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`F.
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`61.
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`The Policy’s “Additional” Coverages
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`In addition, AIG’s Policy provides certain other coverages that are implicated,
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`including, but not limited to, the following:
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`i.
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`Contingent Time Element coverage
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`62.
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`The AIG policy covers Contingent Time Element, which is defined as the “direct
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`physical loss or damage to property … of a direct supplier or direct customer … by a Covered Cause
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`of Loss, and such loss or damage [w]holly or partially prevents any direct supplier from supplying
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`their goods and/or services; or, wholly or partially prevents any direct customer from accepting the
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`Insured’s goods and/or services.” Exhibit A, at CCPOLICY_0027.
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`63.
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`Circus Circus’s direct suppliers and customers have experienced direct physical loss
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`and/or damage to their to their property from a covered “peril or other type of loss.”
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`64.
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`The direct physical loss or damage to property of Circus Circus’s direct customers and
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`suppliers has prevented the suppliers from suppling their goods and services to Circus Circus and the
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`customers from accepting Circus Circus’s goods and services.
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`65.
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`Circus Circus has sustained and will continue to sustain loss of business income, incur
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`extra expense and sustain other insured losses resulting from Circus Circus’s direct suppliers’ and
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`customers’ inability to supply their goods and services and accept Circus Circus’s goods and services,
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`respectively.
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`66.
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`These losses are covered under the Policy’s Contingent Time Element coverage.
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`Case 2:20-cv-01240-JAD-NJK Document 1 Filed 07/02/20 Page 9 of 16
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`ii.
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`Extra Expense coverage
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`67.
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`The AIG Policy covers Extra Expense, which is defined as the extra costs “incurred to
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`temporarily continue as nearly normal as practicable the conduct of the Insured’s business … resulting
`
`from direct physical loss or damage by a Covered Cause of Loss.” Exhibit A, at CCPOLICY_0028.
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`68.
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`Circus Circus has incurred extra cost to maintain its business as a result of the physical
`
`loss and/or physical damage from a covered “peril or other type of loss.”
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`69.
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`These reasonable and necessary extra costs incurred by Circus Circus are covered under
`
`the Policy’s Extra Expense coverage.
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`iii.
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`Ingress & Egress coverage
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`10
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`70.
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`The AIG policy covers Ingress and Egress, which is defined by the Policy as “loss of
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`income and Extra Expense … when partial or total physical ingress to or egress from the Insured’s …
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`property is prohibited as a direct result of a Covered Cause of Loss to the property of others within [1
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`13
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`mile].” Exhibit A, at CCPOLICY_0028, CCPOLICY_0006.
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`
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`71.
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`Circus Circus lost business income and incurred extra cost because of restricted access
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`to its property that is a direct result of a covered “peril or other type of loss” at properties and
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`16
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`businesses within 1 mile.
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`17
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`72.
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`This loss of business income and extra cost sustained by Circus Circus is covered under
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`18
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`the Policy’s Ingress & Egress coverage.
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`20
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`iv.
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`Civil Authority coverage
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`73.
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`The AIG Policy covers the actual loss of income and extra expense sustained because
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`
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`of an Interruption by Civil or Military Authority, which is defined by the Policy as “loss of income
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`and Extra Expense sustained during the period of time when an order of civil … authority prohibits
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`total or partial access to the Insured’s … property, provided such orders are the direct result of a
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`Covered Cause of Loss to the property of others and [within 1 mile].” CCPOLICY_0028,
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`CCPOLICY_0006.
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`26
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`74.
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`Circus Circus has lost business income and incurred extra cost because of government
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`27
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`orders that prohibit access to the casino complex which are the direct result of a covered “peril or other
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`type of loss” within 1 mile of the insured location.
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`{04246510 / 1}9
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`

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`Case 2:20-cv-01240-JAD-NJK Document 1 Filed 07/02/20 Page 10 of 16
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`
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`75.
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` This loss of income and extra cost sustained by Circus Circus is covered under the
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`Policy’s Civil Authority coverage.
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`G.
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`76.
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`No Exclusion Applies
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`No exclusion in the Policy applies to Circus Circus’s claim. To the extent AIG
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`contends any exclusion(s) apply, such exclusion(s) are ambiguous and/or unenforceable.
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`77.
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`The Policy’s exclusion for Pollutants or Contaminants states:
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`Except as otherwise provided under the Additional Coverages and Additional Time
`Element Coverages (and in such event, only to the extent provided therein), the
`Company does not insure for loss or damage caused directly or indirectly by any of
`the following perils. Such loss or damage is excluded regardless of any other cause or
`event contributing concurrently or in any sequence to the loss or damage. These
`exclusions apply whether or not the loss event results in widespread damage or
`affects a substantial area:
`
`
`*
`
`*
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`*
`
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`f. The actual, alleged or threatened release, discharge, escape or dispersal of
`Pollutants or Contaminants, all whether direct or indirect, proximate or remote
`or in whole or in part caused by, contributed to or aggravated by any Covered
`Cause of Loss under this Policy.
`
`Exhibit A, at CCPOLICY_0018-19.
`
`
`78.
`
`79.
`
`Exclusion f does not apply to Circus Circus’s claimed loss.
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`Among other things, exclusion f requires a “release, discharge, escape or dispersal of
`
`Pollutants or Contaminants.”
`
`80.
`
`81.
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`82.
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`83.
`
`COVID-19 was not “release[d], discharge[d], escape[d] or disperse[d].”
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`COVID-19 is a global pandemic of unknown origin.
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`Nor is COVID-19 a Pollutant or Contaminant as that term is defined by the Policy.
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`Pollutants or Contaminants is defined as:
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`any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor,
`soot, fumes, acids, alkalis, chemicals and waste, which after its release can cause or
`threaten damage to human health or human welfare or causes or threatens damage,
`deterioration, loss of value, marketability or loss of use to property insured hereunder,
`including, but not limited to, bacteria, virus, or hazardous substances listed in
`applicable environmental state, federal or foreign law or regulation, or as designated
`by the U.S. Environmental Protection Agency or similar applicable state or foreign
`governmental authority ….
`
`
`{04246510 / 1}10
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`
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`

`

`
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`
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`Case 2:20-cv-01240-JAD-NJK Document 1 Filed 07/02/20 Page 11 of 16
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`
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`84.
`
`Exhibit A, at CCPOLICY_0048.
`
`Unlike Pollutants or Contaminants, as that term is defined in the Policy, as alleged,
`
`COVID-19 is a communicable disease for which there is no known vaccine.
`
`85.
`
`The definition of Pollutants or Contaminants does not include communicable
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`disease.
`
`86.
`
`However, AIG certainly could have added an exclusion to the Policy for loss caused
`
`by or resulting from communicable disease.
`
`87.
`
`AIG likewise could have added an exclusion to the Policy for loss caused by or
`
`resulting from pandemic.
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`88.
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`Indeed, exclusions for both communicable disease and pandemic were in use in the
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`insurance industry when AIG sold the Policy to Circus Circus.
`
`H.
`
`89.
`
`Circus Circus’s Claim
`
`Having sustained loss covered under the Policy, Circus Circus submitted a claim to
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`AIG. AIG has wrongfully failed to accept coverage for the claim.
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`90.
`
`AIG’s failure to accept coverage for Circus Circus’s claim is based on AIG’s failure to
`
`faithfully apply its own Policy language.
`
`91.
`
`AIG’s wrongful denial of coverage has caused Circus Circus to suffer and continue to
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`suffer significant damages.
`
`COUNT I
`
`Declaratory Judgment
`
`92.
`
`93.
`
`Circus Circus repeats and realleges the allegations in the preceding paragraphs.
`
`Circus Circus seeks a declaration of the parties’ rights and duties under the Policy
`
`pursuant to 28 U.S.C. § 2201. A justiciable controversy exists between Circus Circus and AIG
`
`concerning the availability of coverage under the Policy for Circus Circus’s claim.
`
`94.
`
`95.
`
`The controversy between Circus Circus and AIG is ripe for judicial review.
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`Nevada has adopted the Uniform Declaratory Judgment Act for purposes of declaring
`
`parties’ right in this precise circumstance.
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`{04246510 / 1}11
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`

`

`Case 2:20-cv-01240-JAD-NJK Document 1 Filed 07/02/20 Page 12 of 16
`
`
`
`96.
`
`Accordingly, Circus Circus seeks a declaration from the Court that:
`
`a.
`
`b.
`
`c.
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`The various coverage provisions identified herein are triggered by Circus
`Circus’s claim;
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`No Policy exclusion applies to bar or limit coverage for Circus Circus’s claim;
`and
`
`The Policy covers Circus Circus’s claim.
`
`COUNT II
`
`Breach of Contract
`(Property Loss and Damage)
`
`97.
`
`98.
`
`99.
`
`Circus Circus repeats and realleges the allegations in the preceding paragraphs.
`
`The Policy is a valid and enforceable contract between Circus Circus and AIG.
`
`In the Policy, AIG agreed to cover property against all risks of physical loss or damage
`
`from a peril or other type of loss not otherwise excluded.
`
`100. COVID-19 and the resulting governmental orders are a peril or other type of loss as
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`that phrase is used in the Policy.
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`101. COVID-19 and the government orders have caused and are continuing to cause
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`physical loss and/or damage to Circus Circus’s property.
`
`102. No exclusions apply to bar coverage.
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`103. Circus Circus is entitled to coverage for the losses it has sustained because of physical
`
`loss and/or damage up to the Policy’s $500 million limit of liability or any applicable sublimits.
`
`104. Circus Circus complied with all applicable Policy provisions, including paying
`
`premiums and providing timely notice of its claim.
`
`105. Nonetheless, AIG unjustifiably refuses to pay for Circus Circus’s claim in breach the
`
`Policy.
`
`106. Circus Circus has suffered and continues to suffer damages because of AIG’s breach
`
`of the Policy.
`
`107. Circus Circus is entitled to damages because of AIG’s breach in an amount to be
`
`determined at trial, including pre- and post-judgment interest and any other costs and relief that this
`
`Court deems appropriate.
`
`{04246510 / 1}12
`
`

`

`Case 2:20-cv-01240-JAD-NJK Document 1 Filed 07/02/20 Page 13 of 16
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`COUNT III
`
`Breach of Contract
`(Time Element Coverage)
`
`108. Circus Circus repeats and realleges the allegations in the preceding paragraphs.
`
`109. The Policy is a valid and enforceable contract between Circus Circus and AIG.
`
`110.
`
`In the Policy, AIG agreed to cover Circus Circus’s loss of income and extra expense
`
`sustained during the interruption of its business operations directly resulting from a peril or other type
`
`of loss not otherwise excluded, as provided in the Time Element Coverage section.
`
`111. COVID-19 and the resulting governmental orders are a peril or other type of loss as
`
`that phrase is used in the Policy.
`
`112. Circus Circus has sustained and will continue to sustain loss of income and extra
`
`expenses due to the necessary interruption of its business operations as a direct result of COVID-19 at
`
`its property and the government orders impacting its property.
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`
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`113. As well, COVID-19 poses a serious or immediate danger to its property.
`
`114. No exclusions apply to bar coverage.
`
`115. Circus Circus is entitled to coverage for the loss of income and extra expenses sustained
`
`up to the Policy’s $96,774,307 limit of liability or any applicable sublimits.
`
`116. Circus Circus complied with all applicable Policy provisions, including paying
`
`premiums and providing timely notice of its claim.
`
`117. Nonetheless, AIG unjustifiably refuses to pay for these losses and expenses in breach
`
`the Policy.
`
`118. Circus Circus has suffered and continues to suffer damages because of AIG’s breach
`
`of the Policy.
`
`119. Circus Circus is entitled to damages because of AIG’s breach in an amount to be
`
`determined at trial, including pre- and post-judgment interest and any other costs and relief that this
`
`Court deems appropriate.
`
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`{04246510 / 1}13
`
`

`

`Case 2:20-cv-01240-JAD-NJK Document 1 Filed 07/02/20 Page 14 of 16
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`COUNT IV
`
`Breach of Contract
`(Additional Time Element Coverages)
`
`120. Circus Circus repeats and realleges the allegations in the preceding paragraphs.
`
`121. The Policy is a valid and enforceable contract between Circus Circus and AIG.
`
`122.
`
`In the Policy, AIG agreed to afford coverage for the loss of income and extra expense
`
`sustained by Circus Circus as provided in the Policy’s Additional Time Element Coverages section.
`
`123. COVID-19 and the resulting governmental orders are a peril or other type of loss as
`
`that phrase is used in the Policy.
`
`124. COVID-19 and the government orders have caused and, upon information and belief,
`
`are continuing to cause physical loss and/or damage to the property of others that has caused Circus
`
`Circus to sustain loss of income and extra expense that is covered under the Policy’s Additional Time
`
`Element Coverages section.
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`
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`125. No exclusions apply to bar coverage.
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`126. Circus Circus is entitled to coverage for the loss of income and extra expense sustained
`
`up to each applicable limit of liability or any applicable sublimits.
`
`127. Circus Circus complied with all applicable Policy provisions, including paying
`
`premiums and providing timely notice of its claim.
`
`128. Nonetheless, AIG unjustifiably refuses to pay for these losses and expenses in breach
`
`the Policy.
`
`129. Circus Circus has suffered and continues to suffer damages because of AIG’s breach
`
`of the Policy.
`
`130. Circus Circus is entitled to damages because of AIG’s breach in an amount to be
`
`determined at trial, including pre- and post-judgment interest and any other costs and relief that this
`
`Court deems appropriate.
`
`
`
`
`
`
`
`{04246510 / 1}14
`
`

`

`Case 2:20-cv-01240-JAD-NJK Document 1 Filed 07/02/20 Page 15 of 16
`
`
`
`PRAYER FOR RELIEF
`
`Wherefore, Circus Circus prays for judgment against AIG as follows:
`
`1)
`
`A declaration from the Court that:
`
`a.
`
`The various coverage provisions identified herein are triggered by Circus
`
`Circus’s claim;
`
`b.
`
`No Policy exclusion applies to bar or limit coverage for Circus Circus’s claim;
`
`and
`
`c.
`
`The Policy covers Circus Circus’s claim.
`
`2)
`
`For special and consequential damages against AIG in an amount in to be proved at
`
`trial in excess of $75,000.00;
`
`Pre and Post-judgment interest as provided by law;
`
`An award of attorney’s fees and costs of suit incurred; and
`
`For such other and further relief as the Court deems just and proper.
`
`3)
`
`4)
`
`5)
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`JURY TRIAL DEMANDED
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`Circus Circus demands trial by jury on all issues so triable.