Illinois Farmers Insurance Co. v. Metropolitan Water Reclamation District of Greater Chicago

Farmers Insurance filed notices of dismissal withdrawing the putative class action lawsuits that sought damages from  municipal entities in Illinois for failing to implement adequate stormwater management plans to prevent flooding that occurred in 2013. Farmers Insurance had filed nine of the lawsuits (see complaints for Cook, DuPage, Lake, McHenry, and Will Counties), at least two of which (Cook and McHenry) had been removed to federal court. A Farmers Insurance spokesperson <a href="http://www.chicagotribune.com/news/local/breaking/chi-chicago-flooding-insurance-lawsuit-20140603-story.html">said</a> “[w]e believe our lawsuit brought important issues to the attention of the respective cities and counties, and that our policyholders’ interests will be protected by the local governments going forward.”

Illinois Farmers Insurance Co. and Farmers Insurance Exchange and their subsidiaries and related entities (Farmers Insurance) sued the water reclamation district for greater Chicago, Cook County, the City of Chicago and numerous other cities, towns, and villages in Illinois in a class action alleging that the municipalities’ failures to implement reasonable stormwater management practices and increase stormwater capacity resulted in increased payouts to the plaintiffs’ insureds after heavy rains in April 2013. The rains resulted in sewer water flooding the insureds’ properties. Plaintiffs alleged that the rainfall was within the anticipated 100-year rainfall return frequency—or, alternatively, that it was within the climate change-adjusted 100-year rainfall return frequency predicted by the 2008 Chicago Climate Action Plan. They asserted claims of negligent maintenance liability, failure to remedy known dangerous conditions, and takings without just compensation.