Former Atlanta Hawks Management Sues AIG and Its Partner For Breach Of Contract
The former Atlanta Hawks ownership group, the Atlanta Hawks Basketball and Entertainment Group LLC, has filed a lawsuit against the New Hampshire Insurance Company for a breach of contract. According to the official reports, the former ownership group of the NBA franchise claims that the insurance company has not responded to insurance requests made by the former General Manager of AHBE, Danny Ferry.
The former management of ABHE insist that New Hampshire Insurance Company and its partner AIG are responsible for the payment of coverage of certain losses related to the employment practices. As such, the claim suggests that the former management of Atlanta Hawks was covered by its insurance company regarding clauses related to “Wrongful Termination” and “Workplace Torts”.
Actually, the former general manager of ABHE, Danny Ferry, ended the relationship with ABHE in June 2015 that had started with an $18 million contract for six years. However according to ESPN report, the resale of Franchise to a Resller-led group led to a loss for AHBE regarding Ferry’s terms of employment. To recoup the loss, ABHE filed a claim with AIG stating that the loss was covered under the agreement of insurance. According to the former management of ABHE, AIG has not only refused to accept that a policy claim has triggered, but it has refused to accept that a claim was made by ABHE.
Interestingly, the court document also state that AHBE gave notice to AIG on April 2, 2015 to settle such claims. It is also notable that Bruce Levenson (see, brucelevenson.com), the former owner of Atlanta Hawks is among the claimants. Just before the notice to AIG in April, Bloomberg broke the news that Levenson has finalized a deal to sell the franchise to Resller for $730 million. At the time, analyst claimed that the winning bid was significantly less than what brokers for Atlanta Hawks had told Levenson. http://www.prnewswire.com/news-releases/undergrads-and-graduate-students-mastering-philanthropy-300038081.html