The insurance provider for the City of Falls Church, the Virginia Municipal League, is obligated to pay the legal defense costs being incurred as a result of the Fairfax Water Authority bringing suit against the City.
The VML initially denied coverage for the claim. In protesting the denial, Falls Church brought a motion for summary judgment which was granted on November 3, 2009 by Arlington County Circuit Court Judge Joanne F. Alper. VML is now obligated to pay legal defense costs being incurred by Falls Church. The City is collecting those costs and will submit them for payment in the next few days.
The ruling likely alleviates financial pressure on the City to prematurely settle a claim or artificially limit its defense in a suit which has longterm economic implications for Falls Church taxpayers and regional development and utility management.
