Insurers Sue NFL Over its Uncapped Settlement Agreement

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The concussion litigation against the NFL reached a groundbreaking moment last month when the Third Circuit upheld the uncapped settlement agreement between the NFL and a class of injured players. Although this decision may finalize the class action suit, the court’s ruling did not entirely conclude the NFL’s involvement in the litigation. The NFL has also been sued by its insurers to obtain discovery information which could aid in their defense from paying the costs associated with the uncapped settlement.

The settlement agreement is expected to cover more than 20,000 retired players over a 65 year span. Although the settlement only provides compensation for players diagnosed with certain diseases, the settlement could cost the League $1 billion.

The NFL’s insurers are seeking depositions of League officials and third party physicians. The insurers stated they do not want to “join forces” with the plaintiffs in the class action; however, they argue they have a due process right to “pursue discovery of relevant factual information and to defend themselves with respect to the NFL’s request for substantial defense costs.”

On Friday April 29, 2016, a New York judge ruled that the NFL must disclose such discovery information to the insurers. As a result of this ruling, the NFL may be forced to reveal if and when it acknowledged a link between playing football and concussions. This sort of a high profile revelation could potentially hurt the NFL because the insurers may have a successful defense if they prove the NFL had prior knowledge of concussion dangers. The insurers claims are pending in New York so only time will tell what this discovery disclosure will unfold.

 

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