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Trump Tower Chicago Sues Insurer Over Chicago River Pollution Feud

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by Traded MediaShare
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The Trump Organization has filed a complaint on April 3, claiming that the insurer of Chicago's Trump International Hotel & Tower, Allianz Global Risks US Insurance, is obligated to cover pollution cleanup and investigation expenses. This lawsuit stems from past legal conflicts involving the state of Illinois and environmental organizations.

Background of the Dispute

The conflict traces back to 2018 when Illinois initiated legal action against the Trump Organization, alleging that the tower's water management system polluted the Chicago River without proper permits. The tower's cooling system utilizes the river and releases a controlled amount of pollutants. However, compliance requires a National Pollution Discharge Elimination System permit under the federal Clean Water Act.

Environmental Group Involvement

Environmental groups like the Sierra Club and Friends of the Chicago River have been actively engaged, suing the Trump Organization for Clean Water Act violations. They claimed that the tower owners misrepresented water withdrawal rates from the river.

Legal Action Against Allianz

In response to the ongoing legal battles, the Trump Organization has sued Allianz, citing an environmental protection policy that supposedly holds the insurer accountable for pollution cleanup costs, property damage, and legal defense expenses against third-party claims. The lawsuit seeks reimbursement for previous legal expenditures and coverage for potential liabilities arising from state and environmental lawsuits.

Judicial Precedent

A previous court ruling in 2023, involving another insurance company, Continental Casualty, determined that insurers were not obligated to defend the Trump Tower in the state's lawsuit.

No Response from Allianz and Involved Parties

Allianz and the defendants named in the Trump Organization's lawsuit, including the state attorney general's office, the Sierra Club, and Friends of the Chicago River, have not provided comments on the matter. Similarly, the Trump Organization and its legal representatives have remained silent.

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