Atlanta Hawks Basketball and Entertainment (AHBE), the organization directed by UCG founder Bruce Levenson, which formerly owned the Atlanta Hawks, has launched a lawsuit for breach of contract against the New Hampshire Insurance Company (AIG). At issue are the claims made by the former General Manager, Danny Ferry. Tony Ressler is the current owner of the Hawks and is not included in the lawsuit.
AHBE is calling the lawsuit a case of insurance bad faith civil action. Levenson’s team claims an incident involving the termination of Ferry is correctly covered by AIG’s insurance policy. The employment issues that were covered by insurance, but AIG contests them, are the areas of “Workplace Torts” and “Wrongful Termination.” These issues were brought by Ferry after he his employment was terminated and notified AIG of this fact in the Spring of 2015. AIG says the issues with Ferry were not covered.
According to Forbes, a buyout agreement came to AHBE from the new team owner, Tony Ressler’s group in June of 2015. This ended early an $18 million 6-year contract that was begun in 2012. Ressler’s group have responded to confirm that the Atlanta Hawks’ current owners are not at all involved and offered no comment. The lawsuit is all about AIG failing to cover settlement losses in AHBE’s disagreement with Ferry. The total amount of money in the claim has not been publicly disclosed. AIG is also steadfastly refusing to pay anything without a very good case being made. AHBE says the case is simple and obviously AIG’s responsibility if being shirked in ‘bad faith.’ AHBE is also asking for a judgement that requires AIG to pay 50 percent more, to cover legal fees and other costs.