The former owner of the Atlanta Hawks basketball franchise, AHBE LLC, has filed a civil lawsuit for breach of contract and bad faith against the team’s insurance company AIG. The principal partners of AHBE LLC that are involved in this court battle are Ed Peskowitz, Michael Gearon, and Bruce Levenson.
The lawsuit against AIG, which was filed in the Superior Court of Fulton County, Georgia in September claims that AHBE LLC and its partners were insured for the acts alleged by former general manager Danny Ferry in an insurance policy issued by AIG. The policy covered AHBE LLC and its partners for acts of wrongful termination, and workplace torts and further claims that AHBE LLC and its partners gave AIG sufficient notice of former general manager Danny Ferry’s claims for damages. The suit further alleges that AHBE LLC and its partners were clearly covered by AIG for the acts asserted by former general manager Danny Ferry. The notice was served upon AIG April 2, 2015. The notice contained the acts that led to Ferry’s dismissal including the monetary damages claimed by the former general manager against the AHBE LLC and its partners .
On June 22, 2015, Danny Ferry and AHBE LLC and its partners reached a buyout agreement which ended their 6 year $18 million dollar contract that began in 2012. According to filed court documents, the limits of liability of AIG’s insurance policy are sufficient to pay the plaintiff’s claim. However, the suit states that AIG has refused to even acknowledge that a claim has even been made. This denial is despite all evidence to the contrary.
According to PR News, despite an obligation to acknowledge that Danny Ferry’s claims clearly fell within the items covered under AHBE LLC and its partners insurance contract, AIG has failed to pay or even acknowledge receipt of their claim. As a consequence of AIG’s bad faith, AHBE LLC and its partners are seeking an additional 50 percent monetary penalty plus attorney’s fees and costs.