A Las Vegas casino’s fight with an FM Global unit over coverage for losses caused by the COVID-19 pandemic will head to trial after a federal judge denied the insurer’s bid for summary judgment on the policyholder’s breach of contract claim.

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The federal judge in Las Vegas said in Treasure Island LLC v. Affiliated FM Insurance Co. that triable issues exist as to whether the casino sustained physical loss or damage and if exclusions in its all-risks policy are applicable.

The judge did award summary judgment to the insurer on Treasure Island’s claims for bad faith and violation of the Nevada Unfair Claims Practices Act.

Treasure Island sued AFM in June 2020 seeking the full $1.18 billion in coverage limits it had for property damage and business losses caused by the COVID-19 pandemic.