Even after former Atlanta Hawks Owner Bruce Levenson sold the team to a Grant Hill led group in 2015, some of the legal concerns remain unresolved. Bruce Levenson has sued his insurance company over breach of contract. What are the primary issues involved in this lawsuit?
“Nice Little Profit on Atlanta Hawks Sale”
Former NBA Star Grant Hill and billionaire Ares Management Co-Founder Tony Resslar won the auction for the Atlanta Hawks and Philips Arena operating rights after their $730 million bid, Forbes reported. In 2004, Bruce Levenson and his group had purchased the Hawks (and Thrashers) from Time Warner’s Turner Broadcasting System.
Analysts believe that Bruce Levenson enjoyed a nice little profit. Bruce Levenson co-founded the United Communications Group in 1977. See, http://www.ucg.com/AboutUs/Ownership.aspx.
“Breach of Contract Lawsuit”
On June 22, 2015 as reported by Forbes, the former Hawks ownership, led by Controlling Partner Bruce Levenson, ended the relationship with the team’s General Manager Danny Ferry in an undisclosed buyout agreement. On September 13, 2016, Bruce Levenson filed a lawsuit against New Hampshire Insurance Company for “breach of contract” with respect to the Ferry settlement.
This lawsuit asserts that the insurance company has engaged in “breach of contract” and “insurance bad faith.” Specifically, the former ownership group believes its insurance policy covered employment practices, including “wrongful termination” and “workplace torts.” The former ownership group asserts that as early as April 2, 2015, certain “claims had been asserted by Ferry that it believed were covered.”
The group asserts that 1. the insurance company has refused to acknowledge that the claims had been made and 2. therefore, the policy has been triggered. The lawsuit claims that the insurance company “steadfastly refused to participate in the defense of said claims or accept coverage” while the former Hawk’s ownership group was in discussions with Ferry’s legal counsel.