In a recent ruling, the Nevada Supreme Court has determined that actions taken in response to the COVID-19 pandemic did not contravene an “ordinary course” covenant within an asset purchase agreement. This decision overturns a previous ruling on summary judgment that favored potential buyer, LGS Casino. Furthermore, the court partially reversed its previous denial of Lucky Lucy D’s summary judgment appeal.
The ruling came as a consequence of the casino and hotel’s decision to close its operations as part of an emergency directive related to the global pandemic. Justice Linda Marie Bell stated in her ruling: “In closing the casino and hotel pursuant to the emergency directive, the seller was merely following the law so as to maintain its gaming licenses and thus did not materially breach the agreement.”
For more in-depth analysis of this ruling, please visit the original article.