The Subrogation Strategist

Inverse condemnation is a legal theory that is not common in the subrogation industry. However, when dealing with a loss where property damage is the result of action by a public entity, it is a claim that may be available. While there are distinct considerations with raising an inverse condemnation claim, pleading it can also have advantages over common negligence causes of action. Understanding when inverse condemnation is an available claim is the first step in such an analysis.

Although it is not a subrogation case, the Court of Appeal of California (Court of Appeal) recently ... Continue Reading

In City of Oroville v. Superior Court, 446 P.3d 304 (Cal. 2019), the Supreme Court of California considered whether the City of Oroville (City) was liable to a dental practice for inverse condemnation damages associated with a sewer backup. The court held that in order to establish inverse condemnation against a public entity, a property owner must show that an inherent risk in the public improvement was a substantial cause of the damage. Since the dental practice did not have a code-required backwater valve — which would have prevented or minimized this loss — the court found that the city was not liable because the sewage system was not a substantial cause of the loss. This case establishes that a claim for inverse condemnation requires a showing of a substantial causal connection between the public improvement and the property damage. It also suggests that comparative negligence can be a defense to inverse condemnation claims.Continue Reading