City of Burlington v. National Union Fire Insurance

This appeal concerns whether National Union Fire Insurance Co. (NUFI) owes its insured, City of Burlington, reimbursement for Burlington’s expenses in investigating, defending and settling a suit initiated against it in the Caledonia Superior Court, entitled Moffatt v. City of Burlington. Because NUFI declined to defend, Burlington provided its own defense and eventually settled the Moffatt case before trial. Burlington then brought a declaratory judgment action seeking a determination that NUFI breached its duty to defend under the policies it issued to Burlington, and, consequently, that…