FLOYD R. GIBSON, Senior Circuit Judge.
New Madrid County Reorganized School District No. 1 ("the School District") brought this suit against its insurer, Continental Casualty Company, for reimbursement under a liability insurance policy for sums the School District paid to a group of its teachers in settlement of a § 1983 suit. The School District also sought damages for vexatious refusal to pay and attorneys' fees. The district court
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