One of the most important aspects of business is honoring the contract. This is an agreement that is made between two parties. If one person breaches the contract, the best case scenario is that the other party disregards his part of the contract. In other cases like with AIG, a breach in contract could lead to a lawsuit. AIG has breached its contract with AHBE. As a result, the former owners of Atlanta Hawks have filed a lawsuit against the insurance group which addressed not only failure to pay the amount that is covered in the insurance policy, but also the defense of the contract. As a result, the former owners have decided to file a lawsuit.
Among the members of the ownership group is Bruce Levinson. Bruce is one of the people that have handled the financial aspects of the agreement. Among the aspects of the ownership that Bruce (see, brucelevenson.com) was involved with was the selling of the team to the new ownership group. For one thing he has managed to sell it at a high price so that it resulted in profits for the whole group. However, there is another issue that he has to take care of because of the breach of contract with the insurance company.
AIG did not honor its part of the contract. And as reported by ESPN, they are not only getting sued. They are going to have to pay for a lot more expenses and fees than they would have if they have honored the contract. At the same time, they are going to be faced with a hit on their reputation since they show that they can’t be trusted. Many people that are looking at the contract state that the complaints are self explanatory. The insurance group is going to be faced with a lot of hits.