City of Fullerton v. Ins. Co. of the State of Penn.
Opinion
Opinion
MEMORANDUM
The City of Fullerton and a group of homeowners (together, “appellants”) appeal the district court’s grant of summary judgment in favor of the Insurance Company of the State of Pennsylvania (“IC-SOP”) and Lexington Insurance Company (“Lexington,” and together, “the insurers”). The district court concluded that the insurers had no duty to defend the City in an inverse condemnation action (the “Hanson” action) the homeowners brought against it. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm the district court’s judgment.
1. Exclusion X of the relevant policies limits coverage for “property damage” by excluding claims “arising out of land subsi dence for any reason whatsoever.” “Land subsidence” is defined as “the movement of land or earth, including, but not limited to, sinking or settling of land, earth movement, earth expansion and/or contraction, landslide, slipping, falling away, caving in, eroding, earth sinking, and earth rising or shifting or tilting.” Exclusion Y precludes coverage for all claims “[ajrising out of ... inverse condemnation,” except where there is “physical injury or [ jdestruction of tangible property.”