Mohegan Sun Casino Files Lawsuit Over COVID-19 Losses?

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Mohegan Sun Casino Files Lawsuit Over COVID-19 Losses
The Mohegan Tribal Gaming Authority owns and operates the Mohegan Sun casino and resort in Connecticut. Citing a denial of millions in claims, the tribe is suing its insurance carrier.

The claims are related to losses in conjunction with the coronavirus pandemic. This follows a similar lawsuit against the same carrier that was filed in February. That suit is tied to the Mashantucket Pequot Tribe. This tribe owns and operates Foxwoods Resort Casino in the same state.

Mohegan Sun Casino Files Lawsuit Against Insurance Carrier Over COVID-19 Losses

The insurance company named in both lawsuits is Factory Mutual Insurance Co. It is based in Johnston, Rhode Island. A court filing in the Mashantucket case claims that the company is not liable. This is tied to a special clause in the policy. This states that losses caused by viruses and contamination are “specifically excluded from the casino’s policy.”

Factory Mutual is looking to have that original lawsuit thrown out of court. A hearing in that case has been set for Aug. 2. A message seeking comment of the new lawsuit filed by the Mohegan Tribal Gaming Authority was sent to the insurance company. There has yet to be any official response.

The Mashantucket Tribe claims totaled more than $76 million in losses.

These losses were caused by COVID-19 closures at Foxwoods. This includes the spa, museum and golf course. The tribe believes this should be covered under its “all risk” policy with Factory Mutual.

In the Mohegan case, the losses totaled in the millions as well. Each casino believes they have improperly been denied legitimate benefits that add up to millions of dollars. The claims are closely tied to one another. Any ruling in the original lawsuit would most likely have a strong bearing on the second case.

The Mashantucket Tribe’s lawsuit was originally filed in New London. Since then, the case has been transferred to Hartford Superior Court. This was due to the complex litigation tied to the issue at hand. Judge Thomas Moukawsher is set to preside over the initial hearing in early August.

As mentioned, the losses extend past the Foxwoods Resort Casino property. Also named in the suit is:

  1. Mashantucket Pequot Museum and Research Center.
  2. The Spa at Norwich Inn in Norwich and Lake of Isles.
  3. The North Stonington Golf Course.

The combined losses across all of these properties is what added up to the $76 million figure.
The suit filed by the Mohegan Tribal Gaming Authority highlight losses at Mohegan Sun from March 17 to March 31. The casino “suffered millions of dollars in lost revenue” during the shutdown. The resort casino closed after the authority decided to declare a state of emergency.

Chuck Bunnell is the chief of staff for the Mohegan Tribe. He stated that tribal suits “are pretty standard in our industry” but declined to make any further comment.

Factory Mutual legal representatives also refused to comment on the case.

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Mohegan Sun Casino Files Lawsuit Over COVID-19 Losses?
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Mohegan Sun Casino Files Lawsuit Over COVID-19 Losses?
Details on the lawsuit filed by Mohegan Sun casino as they fine lawsuit over COVID-19 losses.
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