Court: Insurer Doesn't Have to Pay City's Legal Fees in Suit
SOUTH PORTLAND, Maine - Maine's highest court has ruled that South Portland's liability insurer doesn't have to cover the city's rising legal fees in an ongoing federal lawsuit.
The Portland Press Herald reports the Maine Supreme Judicial Court decided Tuesday that the Maine Municipal Association Property & Casualty Pool has no duty to defend the city's Clear Skies ordinance.
Portland Pipe Line Corp. filed a lawsuit in 2015 that challenged the ordinance, which banned the loading of crude oil into tankers on the city's waterfront.
The newspaper reported last month that the city's legal fees topped $1 million in December and are expected to rise as city officials prepare for a possible trial.
The city's 2015 complaint had claimed the MMA risk pool breached its duty by refusing to pay for the defense.