July 7, 2014

Farmers Insurance Co. Sues Local Governments for Ignoring Climate Change, Then Withdraws Suit

In May, the Chicago Tribune reported on a class action lawsuit by Farmers Insurance Co. against nearly 200 Chicago-area local governments.  The insurer alleged that the governments should have done more to plan for severe weather tied to climate change.  It sought reimbursement for claims it paid to homeowners for a 2013 April rainstorm that overwhelmed municipal sewer and storm water drains, causing significant damages to flooded properties.

But as the Tribune subsequently reported in June, Farmers “took the defendants by surprise” by withdrawing the lawsuit shortly after filing it.  Farmers spokesman Trent Frager told the Tribune that “company officials had hoped the suit would encourage cities and counties to do more to reduce the risks of future flooding.”