{"id":107477,"date":"2019-06-20T21:08:01","date_gmt":"2019-06-21T04:08:01","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=107477"},"modified":"2019-06-20T22:57:36","modified_gmt":"2019-06-21T05:57:36","slug":"mgms-insurance-company-doesnt-want-to-pay-casino-firms-legal-bills","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/mgms-insurance-company-doesnt-want-to-pay-casino-firms-legal-bills\/","title":{"rendered":"MGM Resorts Sues Zurich After Insurance Company Balks at Paying Casino Operator’s Legal Bills"},"content":{"rendered":"

MGM Resorts International is suing Zurich American Insurance Company for breach of contract, claiming the insurance provider is not fulfilling its contractual obligation to cover the casino operator’s legal bills stemming from the October 2017 mass shooting at the Mandalay Bay in Las Vegas.<\/p>\n

\"\"
Mourners hold a candlelight vigil a week after the 2017 Mandalay Bay shooting. MGM Resorts is suing an insurance company, alleging breach of contract. (Image: Drew Angerer \/ Getty Images)<\/figcaption><\/figure>\n

MGM’s litigation against Zurich American is not related to gaming company’s settlement<\/strong> with victims and family members of those that perished in the shooting. It is expected that MGM could pay out up to $800 million to settle claims<\/a> stemming from the worst mass shooting in US history.<\/p>\n

\n

Rather, MGM’s suit against Zurich American is derived from the Mandalay Bay owner’s claims that the insurance provider is not picking up the tab for its legal fees as it is supposed to do under the terms of MGM’s coverage policy.<\/p>\n<\/div>\n

In a suit filed in US District Court, District of Nevada, MGM Resorts International, Mandalay Bay, LLC, Mandalay Bay Resorts Group, MGM Festival Grounds, LLC and MGM Resorts Venue Management, LLC are pursuing litigation against Zurich American for \u201cfor breach of contract, declaratory relief, tortious breach of the implied covenant of good faith and fair dealing (bad faith) and violation of Nevada\u2019s Unfair Claims Settlement Practices Act.\u201d<\/p>\n

Show MGM The Money<\/b><\/h2>\n

MGM asserts Zurich American, a unit of Swiss insurance giant Zurich Insurance Group, has yet to repay the gaming company’s litigation costs.<\/p>\n

The insurance company sold MGM a commercial general liability policy for a coverage period of July 1, 2017 to July 1, 2018, according to the court filing. The policy features what is known as self insured retention or \u201cthe SIR Endorsement.\u201d<\/p>\n

\u201cThe Zurich Policy is designed and intended, and reasonably was expected by MGM, to provide broad coverage for the most serious claims that MGM could face,\u201d according to suit.<\/p>\n

Under the terms of the policy, MGM is liable for $500,000 in defense costs and \u201csubsequently Zurich must pay for all of MGM\u2019s Defense Costs, including Supplementary Payments, until such time as Zurich exhausts the limit of liability by paying settlements or judgments.\u201d<\/p>\n

Defense costs<\/a> range from court fees, attorneys fees, medical exams, summonses, process serving, transcription of records, investigative services and dispute resolution, among others.<\/p>\n

This dispute does not relate to coverage for a potential settlement and is limited to Zurich\u2019s obligation to pay defense costs in this matter,\u201d said MGM in a brief statement emailed to Casino.org<\/a>.<\/span><\/p><\/blockquote>\n

No Impact<\/h2>\n

MGM has reported $751 million in coverage through multiple insurance providers, so its dispute with Illinois-based Zurich American has no impact on the casino operator’s ability to pay claims related to the October 2017 tragedy.<\/p>\n

The Bellagio and Mirage owner said that following the shooting, under the terms of its policy with Zurich, it swiftly assembled a \u201ccompetent defense team\u201d and notified the insurance carrier of the events, but due to the gravity of the situation, MGM’s $500,000 SIR rapidly evaporated.<\/p>\n

In the suit, MGM contends it fulfilled all of its obligations following the shooting, but also claims Zurich isn’t holding up its end of the bargain.<\/p>\n

More specifically, “Zurich has failed to pay for all reasonable Defense Costs, including substantial amounts due to retained attorneys, expert witnesses, consultants and other vendors that Zurich specifically approved,\u201d said MGM in the court filing.<\/p>\n","protected":false},"excerpt":{"rendered":"

MGM Resorts International is suing Zurich American Insurance Company for breach of contract, claiming the insurance provider is not fulfilling its contractual obligation to cover the casino operator’s legal bills stemming from the October 2017 mass shooting at the Mandalay Bay in Las Vegas. MGM’s litigation against Zurich American is not related to gaming company’s […]<\/p>\n","protected":false},"author":46,"featured_media":107481,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,60],"tags":[],"acf":[],"yoast_head":"\nMGM Resorts Sues Zurich After Insurance Company Balks at Paying Casino Operator's Legal Bills - Casino.org MGM's Insurance Company Doesn't Want to Pay Casino Firm's Legal Bills<\/title>\n<meta name=\"description\" content=\"MGM Resorts International is suing Zurich American Insurance Company for breach of contract, claiming the insurance provider is not fulfilling its MGM Resorts is suing one of its insurance providers, Zurich American, because the company won't pay MGM's legal fees.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MGM Resorts Sues Zurich After Insurance Company Balks at Paying Casino Operator's Legal Bills - 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