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December 18, 2014

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Planet Hollywood says movie banners damaged building, sues insurers

Image

Justin M. Bowen

The Planet Hollywood resort on the Las Vegas Strip.

The Planet Hollywood hotel-casino on the Las Vegas Strip says its facade was damaged by giant banners promoting a movie and wants insurers to cover costs for repairs and interruption of its business.

Planet Hollywood sued six insurance companies Thursday in Clark County District Court in Las Vegas, charging they have wrongly denied coverage for problems caused by the banners.

Two 30-story banners were installed on the side of the resort in 2007 under a contract with Sony Pictures to promote the film "Resident Evil: Extinction.''

The lawsuit says that after the banners were removed in October 2007, Planet Hollywood discovered damage to the building caused by their installation, removal, or both, totaling more than $1 million.

But Factory Mutual Insurance Co. of Johnston, R.I., denied responsibility for covering the costs of repairs and lost income from interruption of the resort's business associated with the problem, the lawsuit charges, alleging breach of contract against Factory Mutual.

Five other insurers were named in the suit.

In also asserting breach of contract claims against those companies, Planet Hollywood said they failed to respond to its request for coverage.

They are Lexington Insurance Co. of Boston, Ace American Insurance Co. of Philadelphia, Arch Insurance Co. of Jersey City, N.J., American Guarantee and Liability Insurance Co. of Schaumburg, Ill., and XL Insurance America Inc. of Stamford, Conn.

The insurers have not yet responded to the allegations.

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