Atlanta Hawks’ Former Ownership Sues AIG Over Ferry’s Settlement

Recently, the former Hawks NBA franchise ownership, The Atlanta Basketball and Entertainment LLC filed a claim against New Hampshire Insurance Company. The lawsuit was for breach of contract. It involves the settlement of charges made by Danny Ferry, the former general manager.

The claim does not involve the present Hawks ownership group that is led by Tony Ressler, http://www.forbes.com/sites/mikeozanian/2015/04/23/bankers-for-levenson-oversold-atlanta-hawks-by-27/, the principle owner. It was filed on September 13 in the Superior Court of Fulton County. The lawsuit is a civil action against an insurance company, which is described as AIG for breach of contract as well as bad faith. AHBE claims that it was insured under a policy that covers certain losses that relate to employment practices. They include, though not limited to definite acts of wrongful termination as well as workplace torts. Court documents indicate that AHBE gave notice to AIG about the claims asserted by Ferry, which the company believed were covered. The notice was given on April 2, 2015.

On June 22, 2015, the Hawks ownership and Ferry reached an agreement effectively ending a relationship that started in 2012 with an $ 18 million six-year contract. According to ESPN‘s report, it was an undisclosed buyout agreement. Subsequently, the decision to sale the franchise was made after two days.

A spokesperson for the present ownership of the franchise noted that they were aware of the claim. In addition, the principal parties do not have ties to the Hawks. The spokesman pointed out that they will have no further comment about the subject. The lawsuit notes that despite of Ferry’s claim triggering the AIG Policy and the claims falling within the policy coverage, AIG has failed to pay the loss that is covered. It has done that in bad faith without any justification.

About Bruce Levenson

He is the co-founder as well as a partner of United Communications Group. He established the company in collaboration with Ed Peskowitz. Additionally, he is also the controlling partner of Atlanta Hawks and Entertainment LLC that previously owned the Atlanta Hawks NBA franchise. To read more, go to brucelevenson.com.