This story by Carly Ocasso was first published in The Bridge on Dec. 4, 2025.
One of the three finalists to become Montpelier’s next city manager is facing a $5 million lawsuit stemming from a decision he made at his current job.
After hours of interviews and some procedural controversy, Montpelier’s City Council chose three finalists on Wednesday to replace former City Manager Bill Fraser: Pinole, CA City Manager Kelcey Young, Pitkin County, CO Commissioner Kelly McNicolas Kury, and Woodstock, VT Municipal Manager Eric Duffy.
However, Duffy is also one of the defendants in an active lawsuit filed in April by Woodstock Police Chief Joseph Swanson after Duffy demoted him. Duffy had placed Swanson on paid leave in October 2024, two days after a traffic incident involving a confrontation between Swanson’s husband and another driver, according to the Vermont Standard.
In November, an “independent investigation by the Vermont State Police determined that no charges could be filed against either driver,” according to the Standard. The demotion was reversed by the court in December. But Duffy did not drop the matter and hired a private detective on Oct. 25 to investigate unnamed complaints against Swanson, according to the Standard.
Swanson responded in kind with a lawsuit against Duffy, the village trustees, Burgess Loss Prevention (the private investigator), the Town of Woodstock and the Village of Woodstock. The lawsuit claimed Duffy and the other defendants had acted unlawfully, maliciously, improperly and without cause, which damaged his reputation, according to court documents.
Still, Duffy told The Bridge his decision was warranted following a 14 hour hearing where the matter was discussed publicly. “I am always going to do what I think is right and in the best interest of my staff, my community and the municipality, and if needed, hold people accountable for their actions or lack thereof,” Duffy said on on Thursday. “We believe he was unable to perform his duties as chief,” citing two no confidence votes — one from the police union and one from the dispatch union in November of 2024.
In Vermont, it is required to show proof of “cause” to remove a police chief from office, according to court documents. Village Trustees had unanimously supported Duffy’s decision to demote Swanson, but the court decision on Dec. 2 asserted the trustees did not show evidence of “cause” to do so.
The village reasoned that a ‘for cause’ determination was not necessary because demotion was not equivalent to terminating employment. The court disagreed, stating that a demotion effectively removes one from office.
Duffy said that as a candidate for city manager, if he gets the position he looks forward to working with the community to co-create a place where people have enough housing and are able to thrive economically. City Councilor Ben Doyle told The Bridge he was aware of the lawsuit during the hiring process, and that Duffy’s ability to face the situation head-on during the hiring process led him to believe Duffy is a man of integrity “who isn’t afraid to make hard choices.” Doyle also said he hopes community members keep an open mind and ask questions of all the candidates during the upcoming public forum.
An evening email to all Montpelier city councilors only yielded Doyle’s response. An email and phone message to Swanson’s lawyer were not immediately returned.
