The Atlanta Hawks Basketball and Entertainment LLC, who used to own the NBA franchise, recently filed a lawsuit against New Hampshire Insurance Company. This lawsuit involved a breach of contract with Danny Ferry’s settlement claims. Bruce Levenson was also a part of the former Hawks ownership group.
The lawsuit, filed against AIG, is a civil suit for breach of contract. AHBE gave notice of claims that were promised to be covered to AIG on April 2, 2015. Ferry and Hawks ownership eventually reached a buyout agreement, which ended the relationship that started with a six-year, $18 million contract. The franchise was then sold to the Ressler-led group.
Bruce Levenson and Ed Peskowitz are majority partners of the Atlanta Hawks LLC, which is a group of businessmen who own the Atlanta Hawks and Philips Arena. Levenson is currently the managing partner of the team.
In 2012, Bruce Levenson hired Ferry as the general manager of the Hawks, and president of basketball operations. In 2014, Levenson announced that he planned to sell his share of the ownership group. Levenson is using the help of an investment banking firm to coordinate the sale of the team. http://www.espn.com/nba/story/_/id/11493472/jason-whitlock-bruce-levenson-atlanta-hawks
The recent lawsuit says that AIG refuses to acknowledge that AHBE made a claim, and that the policy was triggered. AIG also refuses to participate in the defense of the claims or accept coverage.
According to the lawsuit, AIG failed and refused to pay the covered loss without having any justification, therefore leading it to be in bad faith. AIG had no basis to argue that a claim was not made and the claim was not covered.
Due to this trouble, the lawsuit is seeking an extra 50 percent penalty of the loss that remains unpaid and attorney’s fees and costs.
An email sent to AIG for their side of the story and was not returned.