Eminent Domain Exclusion Bars Coverage For Underlying Suit, Federal Judge Says

Eminent Domain Exclusion Bars Coverage For Underlying Suit, Federal Judge Says

HOUSTON - An insurer has no duty to defend or reimburse an insured city or its public officials because the underlying claims that are based on the city's refusal to approve a permit for development are precluded by the policy's inverse condemnation or eminent domain exclusion, a Texas federal judge said Oct. 12 (The City of College Station, Texas, v. Star Insurance Co., No. 11-2023, S.D. Texas; 2012 U.S. Dist. LEXIS 147295).

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