Court Finds That Limitation on Conditional Use Permit Results in Covered Property Damage Due to Loss of Use
Posted by Haight Brown & Bonesteel LLP on Nov 28th 2018
In Thee Sombrero, Inc. v. Scottsdale Ins. Co. (No. E067505, filed 10/25/18), a California appeals court held that a property owner’s loss of the ability to use his property as a nightclub, based on revocation of a city’s conditional use permit (“CUP”), constituted covered property damage.In Sombrero, lessees operated a nightclub under the property owner’s conditional use permit from the City of Colton. A company hired to provide security negligently allowed admission to an armed patron, who shot
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