Town of Ira v. Vermont League of Cities and Towns

¶ 1. Plaintiff Town of Ira brought this action to recover from its insurer, Vermont League of Cities and Towns — Property and Casualty Intermunicipal Fund, Inc. (PACIF), certain losses related to the embezzlement of town funds by the Town’s former treasurer. On summary judgment, the trial court found that the Town was entitled to interest on the embezzled amount up to the policy limit and that this amount mooted the Town’s claim for audit and attorney’s fees, as well as insurer’s counterclaims to recoup certain sums already paid. It also granted judgment to insurer on the Town’s claim that…