The city was originally ordered to pay Dreyer's legal bills by a state judge in August, but the city's insurance company, New York Municipal Insurance Reciprocal, refused. According to court papers field by NYMIR, the city's policy doesn't cover actions done with malice. The city disputed this and sued NYMIR in October.
Costs associated with the two policemen's Article 78 lawsuit against the city have been capped at $3,000 over what has been billed to date.
City Attorney Michael Englert said the city has sufficient funds in the 2006 budget to cover the insurance suit, but if costs roll over into 2007, they would come from his department's budget.