The former ownership group of the Atlanta Hawks NBA franchise, the Atlanta Hawks Basketball and Entertainment LLC, has filed a lawsuit against AIG, also described as the New Hampshire Insurance Company, for breach of contract. The breach of contract concerns the settlement of claims by former general manager, Danny Ferry.
Filed in the Superior Court of Fulton County on September 13, the suit is a civil action for breach of contract and insurance bad faith. The Atlanta Hawks Basketball and Entertainment LLC (AHBE) claims it was insured under a policy for coverage against certain losses relating to employment practices. These include specific acts of “Wrongful Termination” and “Workplace Torts”.
AHBE gave notice to AIG on April 2, 2015, according to court documents, that claims by Ferry had been asserted that they believed were covered by their policy. The amount that AHBE is seeking is also confidential, according to the court documents.
The lawsuit does not include current Hawks ownership, led by principle owner Tony Ressler; however, the AHBE ownership group included controlling partner Bruce Levenson.
Leverson, the founder of UCG has a Bachelor of Arts degree from Washington University and J.D. from American University. He sold the Atlanta Hawks to Tony Ressler for $730 million in 2015.
A spokesperson for the current Hawks ownership stated on ESPN: “We are aware of the complaint. The principal parties involved no longer have ties to the Atlanta Hawks organization and we will have no further comment on this matter.”
The lawsuit claims that AIG has refused to acknowledge both that a claim was made and that the policy had been triggered.
According to The Atlanta Journal Constitution, AIG did not immediately respond to an inquiry via email.