The former ownership group of the NBA Franchise the Atlanta Hawks, Atlanta Hawks Basketball and Entertainment LLC, has sued the insurance company they had used while being owners of the franchise. In their complaint, they say that New Hampshire Insurance Company was in breach of contract and insurance bad faith when the ownership group tried to file a claim in regards to the firing of the franchise’s former general manager, Danny Ferry.
The lawsuit was filed after the ownership group determined their policy with the insurance company covered losses related to employment practices including wrongful termination and workplace torts, something Ferry said had alleged happened. The ownership group filed a claim on April 2, 2015, which the insurance company refuses to acknowledge and also claims that the insurance policy coverage wasn’t triggered by the firing of Ferry.
The ownership group and Ferry had reached a buyout agreement in 2015 which terminated their relationship. Ferry had been hired in 2012 on a six-year, $18 million contract. The lawsuit claims that the insurance company has failed to pay this covered loss, acting in bad faith, and has provided no justification for the decisions it has made. It has also falsely claimed that a claim hadn’t been turned in.
Bruce Levenson was the leader of the former ownership group for the Atlantic Hawks. He and his business partners sold the team in 2015 for a Forbes reported $850 million. He had purchased a portion of the team in 1977 and was the owner of Atlanta Spirit, LLC which operated the NBA team as well as Atlanta’s NHL team. He started out as a writer for a pair of newspapers before founding United Communications Group which provides investing information to corporations that they use to make acquisition and investing decisions.