The doctrine of reasonable expectations did not apply to provide insurance coverage for a Condominium Association suing after a City condemned its building, in Horizon W. Condo. Homes Ass'n v. Travelers Indem. Co. of CN, No. 22-C-0597, 2022 WL 17574860, at *5 (E.D. Wis. Nov. 16, 2022):
As explained below, I conclude that the complaint’s allegations establish that policy exclusions that apply to losses caused by the enforcement of, or compliance with, any ordinance or law generally bar the plaintiffs’ claims for coverage. However, to the extent that these exclusions do not apply, the complaint makes clear that other exclusions—particularly those excluding damage caused by rust and corrosion and structural instability that does not result in an abrupt collapse—would separately bar the plaintiffs’ claims.
The Horizon West Court granted The Travelers' motion to dismiss with prejudice in this case. This case and other significant cases concerning the reasonable expectations doctrine are explored in Section 7:2, Reasonable Expectations of Insured, by Dennis J. Wall, in JOHN K. DiMUGNO, STEVEN PLITT & DENNIS J. WALL, CATASTROPHE CLAIMS / Insurance Coverage For Natural and Man-Made Disasters (Thomson Reuters November 2022 edition).
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