New Hampshire Insurance Company has been sued by the former ownership of Atlanta Hawks Basketball and Entrepreneurship LLC (AHBE) for breach of contract that involved settlement claims made by Danny Ferry, a former Manager. This lawsuit doesn’t include the present ownership of AHBE led by Tony Ressler.
The lawsuits seeks to address the insurance bad faith coupled with breach of contract. Through the lawsuit AHBE insists that it was covered for certain employment related losses such as wrong termination among other losses. On April AHBE submits that it notified AIG, the insurance, that the claims made by Ferry were covered.
In June 2015, Hawks had signed a secret buyout contract with Ferry. Accordingly, they terminated the relation that started in 2012 agreeing to an $18 million contract that was to last six years. Days after the termination of the relationship the franchise was sold to the group led by Ressler. See, http://www.forbes.com/sites/mikeozanian/2015/04/23/bankers-for-levenson-oversold-atlanta-hawks-by-27/.
Policy Triggered or Not
According to Time.com, the current ownership has distanced itself from the suit and the claims therein. The lawsuit asserted that AIG failed to acknowledge there was a claim made triggering the policy. AHBE is also disgruntled that AIG failed to accept coverage or participate in defense of the claims when Ferry’s counsel met Hawks. The claim simply accuses AIG of failing to pay for covered losses.
In bad faith AIG has failed to pay Mr. Ferry, yet it had acknowledged that certain of the claims made by Mr. Ferry had triggered the policy. AHBE submits that AIG did not have any reasonable basis to refute the argument. The representation for AHBE, James J. Leonard & Thornburg LLP, points out that claim was clear for all to see.
Bruce Levenson, 67 years old and father of three, is a husband to Karen. He is an American business personality. He once owned an NBA team and is a renowned philanthropist. He once was a co-owner of Atlanta Hawks LLC. He attended Law School at American University. To read more about Levenson’s philanthropic works, visit prnewswire.com.