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Council authorizes litigation over town’s stop-loss carrier dispute
Summary
After an executive session, Avon Town Council voted unanimously to authorize the Town Manager and Town Attorney to commence litigation to resolve a dispute involving the town’s third-party administrator and the stop-loss carrier.
Following an executive session on Feb. 5 to discuss a memo from counsel about medical insurance stop-loss coverage, the Avon Town Council voted unanimously to authorize the Town Manager and the Town Attorney to commence litigation related to a dispute involving the town’s third-party administrator and the stop-loss insurer.
The Council entered executive session at 8:31 p.m. to discuss the matter with the Town Manager, Assistant Town Manager, Assistant Town Attorney Harrington and the Clerk in attendance. The Council exited executive session at 9:03 p.m.
On a motion by Mrs. Bratton, seconded by Ms. Ausiello, Council authorized legal action to resolve the dispute. The vote was recorded in favor by all members present.
Why it matters: Authorizing litigation signals the Town’s intention to pursue a legal resolution to a contract or coverage dispute involving municipal employee insurance administration and stop-loss coverage; litigation could have legal and budgetary implications depending on outcome and settlement.
What’s next: Town leadership and counsel will proceed with the litigation authorized by the Council.
