Pinnacle Entertainment Sues Insurance Companies
Pinnacle Entertainment, owner of former Casino Magic property inBiloxi, Miss has sued three insurance companies for the Hurricane Katrina damages.
Pinnacle Entertainment, a Las Vegas based firm, complains that the insurance companies have blamed improperly the loses due to flooding instead of weather catastrophe that is specified in the insurance policies.
The three insurance companies are RSUI Indemnity Co. in Atlanta, Allianz Global Risks U.S. Insurance Co. in Chicago and Arch Specialty Insurance Co. in New York.
According to the lawsuit filed by Pinnacle Entertainment in Las Vegas District court, the defendants are well knowledgeable that hurricanes cause heavy storm and flooding.
The casino owners accused the insurance firms of fabricating arguments to reduce or restrict their liability to pay.
Pinnacle Entertainment complains fraud and breach of contract and seeks damage of over three hundred forty six million dollars for the disparity of calculation between claims due to flooding instead of weather catastrophe.
The company also disputes the insurers' arguments that the casino was not covered for the losses of business interruption after the floating casino was damaged and remained closed after the hurricane.
Pinnacle had sold Casino Magic as of last May to Harrah's Entertainment Inc.
The case requests the court to declare that casino project, Pinnacle's River City Casino and Hotel in St. Louis, will be the replacement of Casino Magic, to enable the Pinnacle to collect the insurance claims.
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