The insurance company that has covered Muttontown in a real estate dispute with a former trustee has sued the village, saying its policy doesn't cover "intentional" wrongdoing as alleged by ex-Trustee Richard Entel.

Entel and the village are mired in litigation over an acre of land that was granted to him by the village in 2005, then taken away in 2007 after he lost the mayoral election to current Mayor Julianne Beckerman. He claimed Muttontown's leadership acted in retaliation because of the election.

Scottsdale Indemnity Company of Arizona in a Jan. 5 complaint in New York State Supreme Court said it "does not have any obligation to defend or potentially indemnify" Muttontown in some cases, including "intentional acts, fraudulent acts and acts committed with knowledge that they would injure" Entel and his company Lexjac LLC, which bought the plot. Entel served as a village trustee from 2002 to 2006.

"We believe the claims to be covered by the policy," village attorney Steven Leventhal said of the insurance company.

Scottsdale has covered Muttontown for five years in the Entel case, paying hundreds of thousands of dollars in legal charges, including Leventhal's own fees, he said. The company wants to be relieved of responsibility going forward, Leventhal said.

One of Scottsdale's attorneys, Joshua Weisberg, said last week that his firm doesn't comment on pending litigation.

The 1.1-acre plot was first offered to Muttontown by a developer in 1972 for parkland use.

Entel wanted the plot to add to his adjacent property, according to a March 2011 federal court decision that ruled Muttontown violated his due process rights by taking the property back.

Muttontown officials said the village has returned the plot to Entel, who donated part of it as a conservation easement.

A judge must now decide what, if any, damages the village owes Entel.

Entel's lawyer, Garden City-based Robert Calica, Monday said his client is seeking about $2 million in damages. Calica said he is "not surprised" that Scottsdale has sued the village.

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