More than 30 insurance companies are locked in a tussle with the NFL as retired football players await a settlement of $5 million each over the debilitating effects of head injuries maintained during their time with the league.
The settlement, which will cost roughly $1 billion in total damages, came before a court could determine whether the NFL committed fraud by covering up the danger of concussions. Insurance companies, however, say they aren’t obligated to foot the bill if the league did, in fact, violate the law.
That position was backed two weeks ago by a New York State Supreme Court judge who said insurers could proceed with their case – in other words, the company can proceed with discovery and depose witnesses in an attempt to determine whether the NFL committed fraud.
The league asked Judge Jeffrey K. Oing to delay discovery because roughly 150 players opted out of the original settlement and can continue to sue. Because the appeals are not exhausted, the current settlement could still change, attorneys for the NFL argued.
Oing, however, was not convinced.
“You know, I’ve been extremely patient with this case, and I’ve given you all the stays that you’ve asked for, but I think there comes a time when you need to go forward,” he said.
Now, insurers are coming up with a list of documents they say will prove the NFL knew about the dangers of head trauma and did nothing. They will also likely attempt to depose doctors and lawyers who advised the league on the problem.
But insurers and the NFL must agree on who to depose, and that may not happen. According to a report from the New York Times, the league well almost certainly argue that “certain people or documents do not exist, are not relevant or should be kept confidential.”
In that case, the two sides will appear again before Judge Oing on Friday, May 20. The entire process could take years, attorneys have said.
While the potential of information proving the league committed fraud may proceed to trial, some industry observers say the more likely scenario is a settlement between the NFL and insurers. In this case, the NFL may accept less than full coverage and insurers will agree in order to reduce legal bills, continue to service the NFL and maintain a good working relationship.
“My base scenario is that they are going to settle,” William Wilt, president of Assured Research – an insurance industry analyst – told the Times.
Some of the insurers have “conflicting business interests.”
