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The town of Monroe Connecticut brought action against its E&O insurer for a declaratory judgment that the insurer owed a duty to defend against allegations of negligent misrepresentation. The developer alleged that Monroe negligently misrepresented that they would locate police communications systems on a tower if the developer obtained necessary approvals. Monroe claims that the court erred in holding that the allegations fell within an exclusion in the applicable policy and, therefore, that the insurer had no duty to defend the town. This case is Town of Monroe v. Discover Prop. & Cas. Ins. Co., 169 Conn. App. 644 (2016).

In 2005 Monroe purchased a Public Entity Errors and Omissions Liability Policy from Discover Property and Casualty. In 2006 an action was issued against Monroe alleging that the town had agreed to assist in the “development and implementation of a wireless telecommunications tower.” And had harmed the defendant (Bellsite Development) by abandoning the agreement. The town of Monroe requested defense and indemnity from Discover Property and Casualty, its insurer. The insurer denied coverage. The case was decided for the defendant, and reversed on appeal.

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