Municipalities Beware: Inverse Condemnation Exclusions May Affect Coverage

Municipalities’ land use decisions – such as zoning or rezoning determinations, decisions not to provide exemptions, and annexations – are frequent sources of dispute, and often of litigation. Landowners have a variety of claims and causes of action available to challenge these decisions, ranging from simple claims that the municipality did not comply with applicable state statutes or local ordinances, to common law claims for inverse condemnation, to constitutional challenges based on equal protection, due process, or the takings clause.