Roofer sued over Gold Strike fire

Grace Leong

Tuesday, Aug. 31, 1999 | 11:24 a.m.

Affiliated FM Insurance Co. sued Commercial Roofers Inc. of Las Vegas, alleging Commercial Roofers' negligence during a roofing job caused the 1998 fire that destroyed the casino at the Gold Strike Inn & Casino near Boulder City.

Affiliated FM seeks more than $25 million in damages it says it had to pay to its insured after the June 16 fire.

There were no casualties and the Gold Strike's 380 hotel rooms in a 17-story tower weren't burned, though the tower suffered various degrees of smoke damage. Total damage to the Gold Strike, including the lost casino and the damaged hotel, was estimated at $20 million to $30 million by Clark County Fire Department investigators.

The Gold Strike is being rebuilt as the Hacienda, a Southwest-themed resort, which is expected to open at the end of October on the site on U.S. 93.

Dennis Conway, co-owner and general manager of Commercial Roofers, one of the city's largest roofing companies, denied his company was responsible for the fire.

"We weren't working anywhere near where the fire started. We finished the reroofing job at three in the afternoon and the fire started at 2 am in an area on the roof that we weren't working at."

"The Clark County fire report ruled it was an accidental fire, cause unknown. Arson was ruled out," he said. "Their insurance company is trying to sue our insurance company, Continental Insurance, to get some money out of it."

Clark County fire investigators determined the most probable area of origin for the blaze was the exterior wall west of the registration desk, and that roofing materials stacked in the area had ignited.

The 40 year-old Gold Strike hotel-casino is owned by Lake View Co., a private Boulder City company owned by David Belding; William and Melissa Richardson; and Michael, David and William Ensign.

Belding, William Richardson and Michael Ensign have all been senior executives at the Circus Circus Enterprises Inc. since 1995, when they sold several other casino properties to Circus Circus. Belding, Richardson and Ensign retained the Gold Strike in private ownership.

Commercial Roofers is now working on the roof of the Hacienda. The contractor, which said it is being paid around $150,000 for the contract, started roofing work a few weeks ago and expects to complete the project by November.

"This suit isn't going to change anything or stop us from doing business with Gold Strike," Conway said.

archive