Allegations pertaining to the inappropriate utilisation of the Chicago River.
A state appeals court recently ruled that Trump International Hotel & Tower’s insurers do not have to pay for claims involving environmental issues.
The state of Illinois filed action against Trump Tower in 2018 for allegedly illegally draining water from the Chicago River to use in the hotel’s cooling system.
The hotel is being sued for allegedly taking 20 million gallons of water from the river every day and returning it to the river at a higher temperature, which could be harmful to the aquatic habitat.
It was also alleged in the lawsuit that the hotel’s water discharge permit had expired in 2017 and that it had not been renewed.
The Chicago Sun Times said that the hotel might face fines of up to $12 million if it was found to be in violation for 365 days. That works out to $10,000 each day.
Trump Tower’s insurers—which include Continental Casualty Co., ACE American Insurance Co., Illinois Union Insurance Co., and QBE Insurance Corp.—wanted a declaration from the court saying they wouldn’t have to pay anything because of the state’s case.
When writing for the panel of three appeal judges, Judge Jesse Reyes ruled that the hot water discharges did not “constitute a ‘occurrence’ under the terms of the insurance policies.”
Since there was no actual structural damage to the structure, the court ruled that the insurers bear no responsibility for pollution-related charges.
In 2021, after an Illinois circuit judge sided with the state agency, the hotel and its insurance started having legal issues.
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