Atlanta Hawks Basketball and Entertainment LLC believe they have a problem with New Hampshire Insurance Company. To resolve the issue, they file a lawsuit. The lawsuit claims breach of contract. This breach comes from the settlement of claims made by previous General Manager Danny Ferry. According to Time.com, the owners of AHBE involved in the suit include Bruce Levenson. The suit does not involve current owning group headed by Principle owner Tony Ressler. The suit is filed in the Fulton County Superior Court dated September 13th. The civil suit claims breach of contract on the insurance company part and also states they acted in bad faith. The details circle around coverage of losses due to employment practices and work place Torts.
The suit claims that AHBE gave notice of claims on April 2nd 2015. The suit also states that the insurance company gave assurances the claims would be covered but have failed to pay. Perhaps in an unrelated event, Ferry and the Hawks have reached a buyout agreement, to go their separate ways June 22nd 2015. The buyout ends an eight year $18 million dollar contract. Two days later the franchise is given the green light for sale.
The spokesperson for the current Hawks owners states that they are aware of the situation. They also say that the principal party’s involved are not a part of the organization.
The amount of the claim is confidential. However, the confident limits of liability are said to be sufficient to cover the claim of AHBE. Atlanta Hawks Basketball and Entertainment claims the insurance company constantly refused to accept or cover claims during discussion. The suit also states that Ferry’s claims should have triggered the policy. According to the suit, money owned clearly falls under the coverage.
But insurance woes are not the end of Bruce Levenson’s money troubles. The sale of the Hawks has appeared to not go as well as expected. The sale could have gone as high as one billion, but fell a little short. Maybe, one deal is the cause that effected the other. But like basketball games, business deals are not always fun. Things can get ugly.