By Steven Stamps
The United Football League (UFL) and its member teams were recently sued by its workers’ compensation insurance carrier, National Union Fire Insurance Company (National Union), for nonpayment of insurance premiums and other obligations for the 2009 and 2010 seasons.
The suit was filed in the Supreme Court of New York County on April 5, 2012 by Michael S. Davis and Yoav M. Griver of Zeichner Ellman & Krause LLP. The suit seeks a judgment of $3,095,483.44 in addition to additional and subsequent damages.
The United Football League began play in October 2009 with teams in New York (Sentinels), Las Vegas (Locomotives), San Francisco (Redwoods), and Orlando (Tuskers) playing a six game season. The league expanded to five teams and eight games in 2010. The 2010 season saw the Sentinels move to Hartford (Colonials) and the Redwoods move to Sacramento (Mountain Lions). The Omaha Nighthawks began play in 2010. The 2011 season saw the Colonials fold and the Tuskers move to Virginia Beach to become the Virginia Destroyers. The Locomotives won the first two UFL Championships while the Destroyers were champions in 2011. Plans for a 2012 season have not yet been announced by the league. The league has reportedly lost $225 million in its first three years of operation.
National Union’s suit states that it provided workers ‘compensation insurance coverage for the UFL during the 2009 and 2010 seasons. National Union alleges that the UFL owes additional premium, loss reimbursements, adjustments, expenses, fees, interests, and other obligations that amounted to $3,095,483.44 as of December 9, 2011.
In the suit, National Union states that the UFL did not file any written objections to any amount that the league was asked to pay. National Union served the league with a Demand for Arbitration dated December 9, 2011 in accordance with the payment agreement. The league has not yet responded to the Demand for Arbitration. The complaint asks the court to compel the league to arbitrate the dispute or in the alternative, that the Court enter judgment against the league in the amount of $3,095,483.44 as of December 9, 2011; interests, fees, costs, and additional and subsequent damages in an amount to be determined at trial; and such other and further relief as the Court deems just and proper.
Stamps is a contributing writer to Hackney Publications and an attorney for the Law Office of Ricky D. Green, a firm that specializes in workers’ compensation issues.
