The Saint Regis Mohawk Tribe of New York is demanding that its insurer, Affiliated FM Insurance, cover losses incurred from the coronavirus shutdown of its casino.
It has filed a motion for summary judgment in federal court in the case of Mohawk Gaming Enterprises, LLC v. Affiliated FM Insurance Co.
The tribe owns Akwesasne Mohawk Casino and Resort in Hogansburg, which suffered a business interruption that the tribe says is covered by its policy, despite the insurer’s claim that it instead covered by a “contamination exclusion.” The tribe closed the casino in March.
In its court documents the tribe’s attorneys not that the policy provides coverage for “communicable disease,” which occurred at a nearby college, causing the casino to close until late August.
The insurer denied the tribe’s claim on July 21.
The tribe’s attorneys argue, “The important factor is transmissibility, the key which distinguishes a ‘communicable disease’ from ‘contamination,’ ” unlike, for example, the Zika virus, which is spread by insects.
The tribe seeks $15.26 million in loss gross revenue earnings, damages and lawyers’ fees. It also accuses Affiliated of fraud for deny coverage “based on a contorted interpretation of the policy . . .”
