Ocean Casino Resort Demands $1.5M From Atlantic City for July Fire Damages

Ocean Casino Resort is seeking $1.5 million from Atlantic City, alleging the local fire department was negligent in its handling of a July blaze at the Boardwalk property. An aerial view of Ocean Casino Resort in Atlantic City on Oct. 8, 2022. Ocean plans to sue the City of Atlantic City over a July 2026 fire at the Boardwalk property. (Image: Shutterstock) The Boardwalk property notified the Atlantic City Council this week of a forthcoming claim regarding the July 27 incident. The New Jersey Tort Claims Act requires plaintiffs to notify a municipality within 90 days of an incident regarding a formal claim. As Casino.org reported at the time, a small fire broke out early on the morning of July 27 in a linen closet, triggering the building’s sprinklers. A pipe in the suppression system subsequently burst, causing a partial ceiling collapse in the casino’s main lobby. The casino remained closed for the entire day, forcing the cancellation of a $30,000 slot tournament while the hotel and resort operated at limited capacity. Ocean blames the Atlantic City Fire Department for not adequately responding to the fire. “Gross negligence, carelessness, and wanton damages caused at Ocean Casino in response to a fire,” Justin Santagata, an attorney with Cooper Levenson who represents Ocean, said in the notice. More details regarding Ocean’s allegations will come to light when the complaint is filed in court. The notice did not specify how the Atlantic City Fire Department was allegedly negligent or careless in its response. Alleged Damages Ocean Casino Resort alleges that the Atlantic City Fire Department’s botched response caused “wanton and willful damages.” The casino claims the inadequate public service for the fire resulted in $488,613 in architectural and engineering fees, $49,345 in repairs to the casino lobby ceiling, a purchase of $5,331 worth of ceiling tiles, $8,444 in ductwork repairs, $9,751 in new carpet, and $5,303 in damages to casino gaming equipment. Ocean claims the fire resulted in $59,602 in hotel room cancellations and $23,668 in hotel guestroom compensation. Santagata said the casino will seek $1.5 million in damages from the city, with additional damages occurring from the casino being shuttered during the fire and subsequent cleanup. In July 2025, when Ocean was open for all 31 days, the casino reported gross gaming revenue of $43.1 million, or $1.39 million per day. In July 2026, Ocean’s GGR was nearly $52.2 million, or $1.68 million a day. Despite being closed on July 27, Ocean’s GGR increased 21% year-over-year. Fire Department Claims Suing a fire department is generally difficult because most states limit or prohibit lawsuits against government agencies. In New Jersey, public duty doctrine shields firefighters from negligence liability unless gross negligence or willful misconduct is proven. These cases can be very complex and difficult to pursue,” according to the New Jersey-based Aiello Harris Abate Law Group. In a landmark 1998 ruling, the New Jersey Superior Court Appellate Division barred a claim from a plaintiff whose tree farm caught fire after flares used to land a first-responder helicopter sparked a blaze. The post Ocean Casino Resort Demands $1.5M From Atlantic City for July Fire Damages appeared first on Casino.org.