The former proprietors of the Atlanta Hawks, a perennial participant in the NBA, pursued litigation against their insurer, New Hampshire Insurance. The former owners felt that the insurance company violated contract terms in settlement of the case filed against them by former executive David Ferry. The plaintiffs (AHBE) led by Bruce Levenson, did not engage the current ownership in the legal battle.
The case was filed in Fulton County’s Superior Court. The defendant, AIG insurance, was sued for breach of contract and insurance bad faith. AHBE’s argument was that the insurance covered against losses incurred as a result of employment practices including unjustified termination and misdeeds at the workplace. They further claimed that they notified AIG of Ferry’s complaints, which they believe that were covered by the insurance.
In the light of his claim, a promising six-year deal worth $18 million between Ferry and the Bruce Levenson leadership came to a premature end. The two parties’ agreed to settle by handing Ferry an undisclosed amount of money. Two days after the truce, Bruce sold the Atlanta Hawks to Tony Ressler, who owns the franchise up to date. Ressler’s spokesperson refused to comment on the proceedings, citing lack of affiliation as the reason.
The case files reveal that AIG declined to confirm if AHBE filed a claim to counter Ferry’s settlement. Additionally, the lawsuit states that AIG’s position was unknown because they neither defended themselves against the claims nor accept to cover the costs. The litigation aims to charge AIG for contract violation for failing to pay for the losses incurred during the settlement. Also, they are suing AIG for failing to give legitimate reasons for their actions.
About Bruce Levenson
Bruce Levenson is an entrepreneur, having started numerous companies like the UCG and Tech Target. He attended Washington University, where he graduated with a BA. He later received a Juris Doctor from the American University.
In 2015, Bruce sold Atlanta Hawks for a Forbes.com reported $850 million, to the current owner Tony Ressler.