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MUNICIPAL ASS'N OF S.C. v. USAA GENERAL INDEM. CO.

Nos. 11-2220, 11-2221, 11-2222, 11-2223.

709 F.3d 276 (2013)

MUNICIPAL ASSOCIATION OF SOUTH CAROLINA, Plaintiff-Appellee, v. USAA GENERAL INDEMNITY COMPANY, Defendant-Appellant. Municipal Association of South Carolina, Plaintiff-Appellee, v. Nationwide Mutual Fire Insurance Company, Inc., Defendant-Appellant. Municipal Association of South Carolina, Plaintiff-Appellee, v. Hartford Fire Insurance Company, Defendant-Appellant. Municipal Association of South Carolina, Plaintiff-Appellee, v. Service Insurance Company, Inc., Defendant-Appellant.

United States Court of Appeals, Fourth Circuit.

Decided: March 1, 2013.

Attorney(s) appearing for the Case

ARGUED: Robert H. Jordan , Nelson Mullins Riley & Scarborough, LLP, Charleston, South Carolina; Molly Hughes Cherry , Nexsen Pruet, LLC, Charleston, South Carolina, for Appellants. Robert E. Tyson, Jr. , Sowell, Gray, Stepp & Laffitte, LLC, Columbia, South Carolina, for Appellee. ON BRIEF: John C. von Lehe, Jr. , Merritt G. Abney , Nelson Mullins Riley & Scarborough, LLP, Charleston, South Carolina, for Appellants USAA General Indemnity Company and Nationwide Mutual Fire Insurance Company, Inc.; Bradish J. Waring, Nexsen Pruet, LLC, Charleston, South Carolina, for Appellants Hartford Fire Insurance Company and Service Insurance Company, Inc. Robert E. Stepp, Bess J. DuRant, Sowell, Gray, Stepp & Laffitte, LLC, Columbia, South Carolina; Leroy F. Laney, Damon C. Wlodarczyk, Riley Pope & Laney, LLC, Columbia, South Carolina, for Appellee.

Reversed by published opinion. Judge GREGORY wrote the opinion, in which Judge NIEMEYER and Judge DAVIS joined.

OPINION

GREGORY, Circuit Judge:

The Municipal Association of South Carolina ("MASC") filed an action in the district court seeking a declaration that South Carolina municipalities are entitled to assess municipal business license taxes based on, or measured by, the total flood insurance premiums collected in the particular municipality by insurance companies under an arrangement with the Federal Emergency Management Agency ("FEMA"). The insurance companies...

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