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Cedar Point


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Bottom line up front (BLUF): Maybe.

The city may or may not, be obligated so to do. Difficult legal issues would be involved, from sovereign immunity to Ohio judicial precedents. It would appear that sovereign immunity may not apply here, as municipal water utilities in Ohio have been held to be engaged in proprietary functions. That being said, what standard of care would be required of the city in exercising water supply functions would be the key issue, along with whether it met that standard--legal and factual issues.

http://www.gallaghersharp.com/sites/default/files/2012%20April%20-%20Municipal%20Liability%20-%20An%20Overview.pdf

There is no legal advice meant for a particular client contained herein. The writer is not engaged in the private practice of law in Ohio, the District of Columbia or any United State. Consult a competent attorney in your jurisdiction if you have, or think you may have, a legal problem. Claims made in a lawsuit express only one side of a matter. This is a disclaimer.

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Well, if Cedar Fair does have business interruption insurance and if the city does not have sovereign immunity in operating a municipal water system and if the city breached the duty to exercise the required standard of care in operating such a system, and the insurance company does pay Cedar Fair or one or more of its affiliates, then the city is not necessarily off the hook. As a part of the claim process, the insurance company would have the insured(s) subrogate any claims it\they may have against liable parties, then would pursue settlement and\or litigation after the city. Cedar Fair or its affiliates would not have to sue the City, the insurance company would pursue the claim.

The author herein is not engaged in the private practice of law in Ohio, the District of Columbia, or any United State. There is no legal advice intended for a particular client contained herein. Consult a competent attorney in your jurisdiction if you have, or think you may have, a legal problem. This is a disclaimer.

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