A lawsuit has been filed against New Hampshire Insurance Company by the former management of the Atlanta Hawks Basketball and Entertainment LLC. They are charging New Hampshire Insurance Company with breaching its contract with them. Specifically, this case is about Danny Ferry the former manager of the basketball team. Bruce Levenson is the controlling partner of the Hawks ownership group. A different organization currently owns the Atlanta Hawks because Levenson and his business partners recently sold the team. See, http://www.forbes.com/sites/mikeozanian/2015/04/23/bankers-for-levenson-oversold-atlanta-hawks-by-27/.
The legal case was filed on September 13th, within the Superior Court of Fulton County. The case states that New Hampshire Insurance Company, also known as AIG, acted in bad faith against Levenson’s management corporation. Levenson’s company belives that it was covered for all losses involving employment practices including “Wrongful Termination” of its employees and “Workplace Torts”. When the Hawks management company terminated Danny Ferry in April of 2015, the AIG insurance policy should have covered some of the costs related to his termination.
After negotiations, Ferry and the Hawks management reached an agreement on buying out his contract. This brought Ferry’s $18 million contract to a close. The contract was originally covered 6 years of employment. The Hawks management needed to terminate Ferry’s employment as part of the deal to sell the team to Tony Ressler’s company. When asked for comment by Time Magazine, Tony Ressler’s Hawks management team commented that they are not involved in this dispute in any way.
AIG has refused to make any acknowledgement of the claims brought against it. Levonson’s management has documented evidence that it notified AIG that it was obligated to pay out on the insurance claim back in 2015. This constitutes a breach of contract on AIG’s part. Levenson’s mangement company seeks attorney fees in addition to the other penalties against AIG in this case. AIG has declined to comment to the press on this matter. Read more about Mr. Levenson on the PR News‘ website.