Fallout from the Ferry settlement: AIG being sued
The Atlanta Hawks LLC is suing an insurance company for breach of contract.
The plaintiff, which used to own the Atlanta Hawks NBA franchise, alleges in a civil suit that the insurance company, AIG, acting in bad faith and breached their contract.
The lawsuit was filed September. 13. It alleges that The Atlanta Hawks LLC was insured for losses associated with employment issues, like wrongful termination. In 2015 the team fired its then general manager, Danny Ferry. He sued The Atanta Hawks LLC, who alerted AIG.
The amount of the claim against AIG is confidential. But it alleges that the insurance company refused to acknowledge the policy and accept that it had to cover the payout. The suit alleges that this amounts to a breach of contract.
A lawyer representing the plaintiff said that the complaint represents their position and declined to give further details. The lawsuit does, however, aim to slap AIG with a fifty percent penalty and make the insurance behemoth pay the plaintiff’s attorney fees and court expenses. AIG chose not to comment to reporters about the suit.
According to Forbes, the team’s old ownership group settled with Ferry on June 22, 2015, giving him an undisclosed buyout. Ferry had signed a contract with the team in 2012 worth $18 million for six years.
The Atlanta Hawks LLC sold the franchise on June 24. The Hawks’ current ownership declined to substantively comment on the lawsuit, asserting that none of the parties are currently tied to the franchise.
The Atlanta Hawks LLC is headed By Bruce Levenson. Levenson is one of the co-founders of United Communications Group, http://www.ucg.com/AboutUs/Ownership.aspx, where he continues as a partner. Before founding the company he was a writer for The Washington Star and Observer Publishing.
Bruce Levenson is also a noted philanthropist, and has served as the president of the “I Have a Dream,” Foundation.