Ocean Casino Blames Atlantic City Fire Department For $1.5m Damage

Ocean Casino Resort plans to sue the city of Atlantic City, alleging the Fire Department mishandled its response to a small fire in July and caused a pipe to burst, resulting in $1.5m of damage, according to a report by the Press of Atlantic City. The dispute comes as Atlantic City’s casinos compete hard for a dwindling summer trade.

The casino filed a notice of claim with the city on 13 October, which became public on Monday when the City Council agenda was posted online. In it, Ocean accuses the Fire Department of gross negligence and careless, wanton and willful damages in responding to the blaze. A notice of claim is a notification legally required in New Jersey before suing a public entity.

The notice does not spell out exactly how the department is alleged to have mishandled its response. Under a section asking how the incident happened, the casino wrote that the department responded to a fire at the property and caused excessive damage, including a burst pipe. Mayor Marty Small Sr., Fire Chief Scott Evans and Ocean's management all declined to comment on the pending litigation.

What Happened In July

The problems began with an early-morning fire on 27 July in a linen closet. Crews were called at 5:31 a.m. and found a fire in the linen capture room that produced heavy smoke and burning debris, the Fire Department said at the time. 

While fighting it, a significant water release occurred and flowed heavily through the property. The water caused a large ceiling collapse in the lobby and reached elevator shafts and back-of-house hallways. No one was injured.

Expected Losses

Ocean's casino floor was closed for a day, reopening on 28 July, while the hotel stayed open although some guests left early. The casino said at the time it expected to lose at least $1m in revenue from the shutdown. 

General manager Bill Callahan said then that the property was told of a broken pipe at about 6:30 a.m., that crews reached it within 20 minutes, and that it was one of the main valves so water came out quickly. He said the casino takes in an average of $1.2m to $1.3m on an ordinary day, and up to $1.5m at times in summer.

Itemised Claim

The claim lists $488,613 in architectural and engineering fees, $49,345 to repair the collapsed lobby ceiling, $9,751 for carpet, padding and tile, $8,444 to replace duct work, $5,331 for ceiling tiles, $5,303 for gambling equipment inventory including playing cards and $2,273 for LED electrical panels. 

It also cites $59,602 in hotel cancellations and $23,668 in compensation paid to hotel guests. The notice asserts the casino has spent more than $100,000 addressing the damage so far.

A notice of claim is a first procedural step, and the allegations are the casino's own. Neither the city nor the Fire Department has responded publicly to them. Anyone planning a trip to Atlantic City should check the property's current status directly, and readers can compare licensed operators in our online casino guide.