California City's Insurers Settle RLUIPA Claim; Will Pay Church $1.2M

The company that provides insurance coverage to the City of Lake Elsinore, California agreed on Wednesday to pay $1.2 million in damages (plus attorneys' fees) to settle a case that had been brought against the city by the Elsinore Christian Center. The suit stemmed from the city's denial of a conditional use permit requested by the Center so it could use a parcel of commercial property and a building on it for religious worship. The city hoped that a non-tax exempt commercial enterprise would occupy the building instead. The church brought suit under the Religious Land Use and Institutionalized Persons Act. The city asserted that RLUIPA was unconstitutional, but it lost that argument in the 9th Circuit last August. (See prior posting.) Now, according to the North County (CA) Times, rather than waiting to see if the U.S. Supreme Court will eventually grant its petition for certiorari on the constitutional challenge, the city will drop its attempted appeal. City Councilman Thomas Buckley said that the California Joint Powers Insurance Authority was "absolutely wrong" in deciding to settle.