Ill. Appeals Court Axes Insurers' Chicago Sewer Fight

Law360, New York (March 15, 2012, 4:41 PM EDT) -- An Illinois appeals court on Wednesday upheld a lower court decision and jury verdict that found the city of Chicago’s sewer system was not to blame for rainwater-flooded basements, saying Allstate Insurance Co. and other insurers hadn’t shown the ruling to be unreasonable.

The three-judge appeals panel rejected the insurance companies’ arguments that the city is not immune from takings claims under Illinois state law and that its implementation of a sewer inlet control system called Rainblocker caused raw sewage and stormwater to discharge into the...
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