2017

AGCS Marine Ins. Co. v. Arlington County

Supreme Court of Virginia

293 Va. 469, 800 S.E.2d 159

Two insurers paid property damage claims to a grocery store arising from the malfunctioning of a county sewer line. By subrogation, they filed an inverse condemnation suit against Arlington County on the theory that the sewage backup was a taking and damaging of private property for a public use without just compensation in violation of Article I, § 11 of the Constitution of Virginia. The County defended by asserting it was a negligence claim, not a constitutional one, and any taking/damage was not for a public use. Trial court dismissed the suit on demurrer and denied an opportunity to replead. Supreme Court reversed in part and remanded, holding that a proffered amended complaint stated a viable claim for inverse condemnation. The amended complaint included allegations that the County intentionally created the backflow to meet the demands on the entire system, which was for a public use. The Court also held that inverse condemnation clearly covers compensation for damaged personal property.

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