A few months ago the Chicago Tribune published an article describing insurers’ efforts to avoid covering civil suits filed against Chicago and nearby cities that allege wrongful criminal prosecutions (including wrongful arrests and convictions, as well as torture). Such actions against municipalities have become more prevalent, in part as a result of advances in DNA evidence.
The articles notes in one case the insurer argued its policy “doesn’t cover the ‘fraudulent, criminal or dishonest conduct’ alleged in” the underlying lawsuit. A municipal attorney countered that, while denied by the city, the plaintiff’s “accusations describe ‘the specific kinds of violations expressly covered by the policy.’”
Municipalities beware, future policies may contain specific exclusions pertaining to these types of claims:
As wrongful convictions continue to come to light, insurers that cover municipalities will weigh the risk of pricey civil claims when setting premiums or writing policies, said former city of Chicago deputy corporation counsel Larry Rosenthal, now a professor at Chapman University School of Law in California.
