"The legal system doesn't have any magic cure."
Alex Karakatsanis, Esquire, founder of Equal Justice Under Law, quoted by http://nyti.ms/1Kz5rJK Shaila Dewan, "Fighting Court by Court to End Judicial Policies That Fall Heavily on Poor" p. 16, col. 1 (New York Times Nat'l ed., Sunday, October 25, 2015).
In response to charges and to lawsuits over the use of fines and penalties by cities and counties in States as diverse as Alabama, Mississippi, Ohio and Pennsylvania, allegedly to raise money without regard to the defendant's ability to pay, many cities and counties settle. Later, some end up breaching their pre-suit and litigation settlement contracts. "Time and again, governments large and small have failed to follow through on their agreements, leading in some cases to renewed legal battles." Shaila Dewan, "Fighting Court by Court to End Judicial Policies That Fall Heavily on Poor" p. 16, col. 1 (New York Times Nat'l ed., Sunday, October 25, 2015).
Seems like these "bad faith" breaches might be an appropriate time and place for carriers to invoke and, if necessary, for Courts to litigate uniform exclusions of liability coverage for breach of contract. Exclusions of liability for breach of contract are found for example in virtually every commercial general liability policy as well as in many other types of insurance policies under which the allegedly breaching munis might make a coverage claim.
Please Read The Disclaimer. ©2015 by Dennis J. Wall, author of Litigation and Prevention of Insurer Bad Faith (3d ed. Thomson Reuters West in 2 Volumes, with 2015 Supplements). All rights reserved.
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