Houston signed the contract, they are responsible to pay him. There is no reason he should retire. If Houston could cut him instead of paying him, they absolutely would. But since they cant, he shouldnt let them out of the deal. Isnt it customary for insurance companies to deny the claims. Im sure Houston and CIGNA will get together and settle this out of court.
Its a little more complicated than some of you are making it. For years in the late 90s and early 2000s, Bagwell agreed to defer portions of his annual salary to help the 'Stros free up money for pursuing free agents. Both he and Biggio did this. Now some of this deferred salary is still owed him. So some of you are now asking him to essentially give up millions and millions of dollars that he was owed when he was in his prime and very selfless.
April 18, 2006, 1:21AM
Astros file suit in Bagwell case
With star disabled, team says insurance company is liable
By JOSE DE JESUS ORTIZ
Copyright 2006 Houston Chronicle
<!-- commented out ad <iframe width="1" height="1" marginwidth="0" marginheight="0" frameborder=0 scrolling=no></iframe> <script></script>
-->Attorneys for the Astros filed a lawsuit Monday against Connecticut General Life Insurance Company, claiming breach of contract because the company has denied the Astros' claim to recoup $15.6 million of disabled first baseman Jeff Bagwell's $17 million salary for 2006.
"The reason we've filed is because Connecticut General Life Insurance has continued to not live up to its obligation," said Astros attorney Wayne Fisher, a member of Houston law firm Fisher, Boyd, Brown, Boudreaux and Huguenard.
Astros owner Drayton McLane said Monday that he will let Fisher speak for him in regard to the lawsuit.
Connecticut General is represented by the Houston law firm of Baker Botts, which had not seen the lawsuit that was filed in Harris County District Court.
"While it'd be premature to comment on the details of a lawsuit I have not seen, Connecticut General is confident in the decision it reached about the Astros' claim," said Ty Buthod, a partner at Baker Botts.
Fisher and McLane also appeared confident.
"We wouldn't file it if we weren't optimistic," Fisher said.." We think it's a deserving case and we think it's a very clear-cut case. This lawsuit is based on breach of contract."
The official parties named in the lawsuit are Houston McLane Company, Inc. d/b/a Houston Astros Baseball Club vs. Connecticut General Life Insurance Company, which is also known as CIGNA.
Policy terms
"To acquire this disability coverage, the Astros paid $2,409,343 in premiums to CIGNA," Fisher wrote in the 20-page brief that was filed with the lawsuit. "The terms of the Policy are relatively straightforward. The Policy provides a schedule of benefits payable to the Astros in the event (a) Mr. Bagwell becomes totally disabled and (b) the terms of and conditions of the Policy are met.
"In section 2 on page 6 of the Policy, the benefits scheduled for the 2006 regular season that CIGNA, by contract, agreed to pay are $85,748 for each regular season day that Mr. Bagwell misses due to a total disability. Plaintiff has timely presented a claim for these benefits to Defendant. Defendant has denied the claim. Hence, the lawsuit."
Bagwell, who is on the 15-day disabled list with arthritis and bone chips in his right shoulder, was deemed disabled as a professional baseball player by two physicians in January.
Based on those reports, the Astros filed their insurance claim Jan. 27, four days before the policy's deadline.
But March 13, Connecticut General sent a letter to the Astros notifying them the claim had been denied.
The Astros appealed, citing Bagwell's declarations last month that the pain had become too great for him to play.
The Astros will argue Bagwell, 37, was deemed disabled Jan. 12 after he underwent numerous tests at the Birmingham, Ala., offices of orthopedicsurgeon Dr. James Andrews.
"The Astros' claim under the Policy is predicated on the unfortunate fact that Jeff Bagwell is disabled from playing professional baseball," papers filed by the Astros state. "Mr. Bagwell is righthanded. He throws righthanded. He also bats righthanded."
Connecticut General will be served with the lawsuit within two weeks.
"Once we have been served with the lawsuit, then we will deal with it as any defendant would," Buthod said. "This is simply a matter of a contract between the Astros and Connecticut General.
"It has nothing to do with the outstanding career that Jeff Bagwell has enjoyed here in Houston."
Detailed medical reports
Bagwell will be at the center of the lawsuit. Three of the 20 pages the Astros filed contain detailed reports from Dr. Andrews and Dr. David Lintner, the Astros medical director.
"Dr. Andrews summarized," the Astros filed, "his conclusions regarding Jeff Bagwell's ability to play during the 2006 season as follows: 'For the record, though, it appears to me he is disabled completely from playing professional baseball at this time unless some type of miracle occurs that is not predictable.' "
http://www.chron.com/disp/story.mpl/sports/3800232.html
Astros file suit in Bagwell case
With star disabled, team says insurance company is liable
By JOSE DE JESUS ORTIZ
Copyright 2006 Houston Chronicle
<!-- commented out ad <iframe width="1" height="1" marginwidth="0" marginheight="0" frameborder=0 scrolling=no></iframe> <script></script>
-->Attorneys for the Astros filed a lawsuit Monday against Connecticut General Life Insurance Company, claiming breach of contract because the company has denied the Astros' claim to recoup $15.6 million of disabled first baseman Jeff Bagwell's $17 million salary for 2006.
"The reason we've filed is because Connecticut General Life Insurance has continued to not live up to its obligation," said Astros attorney Wayne Fisher, a member of Houston law firm Fisher, Boyd, Brown, Boudreaux and Huguenard.
Astros owner Drayton McLane said Monday that he will let Fisher speak for him in regard to the lawsuit.
Connecticut General is represented by the Houston law firm of Baker Botts, which had not seen the lawsuit that was filed in Harris County District Court.
"While it'd be premature to comment on the details of a lawsuit I have not seen, Connecticut General is confident in the decision it reached about the Astros' claim," said Ty Buthod, a partner at Baker Botts.
Fisher and McLane also appeared confident.
"We wouldn't file it if we weren't optimistic," Fisher said.." We think it's a deserving case and we think it's a very clear-cut case. This lawsuit is based on breach of contract."
The official parties named in the lawsuit are Houston McLane Company, Inc. d/b/a Houston Astros Baseball Club vs. Connecticut General Life Insurance Company, which is also known as CIGNA.
Policy terms
"To acquire this disability coverage, the Astros paid $2,409,343 in premiums to CIGNA," Fisher wrote in the 20-page brief that was filed with the lawsuit. "The terms of the Policy are relatively straightforward. The Policy provides a schedule of benefits payable to the Astros in the event (a) Mr. Bagwell becomes totally disabled and (b) the terms of and conditions of the Policy are met.
"In section 2 on page 6 of the Policy, the benefits scheduled for the 2006 regular season that CIGNA, by contract, agreed to pay are $85,748 for each regular season day that Mr. Bagwell misses due to a total disability. Plaintiff has timely presented a claim for these benefits to Defendant. Defendant has denied the claim. Hence, the lawsuit."
Bagwell, who is on the 15-day disabled list with arthritis and bone chips in his right shoulder, was deemed disabled as a professional baseball player by two physicians in January.
Based on those reports, the Astros filed their insurance claim Jan. 27, four days before the policy's deadline.
But March 13, Connecticut General sent a letter to the Astros notifying them the claim had been denied.
The Astros appealed, citing Bagwell's declarations last month that the pain had become too great for him to play.
The Astros will argue Bagwell, 37, was deemed disabled Jan. 12 after he underwent numerous tests at the Birmingham, Ala., offices of orthopedicsurgeon Dr. James Andrews.
"The Astros' claim under the Policy is predicated on the unfortunate fact that Jeff Bagwell is disabled from playing professional baseball," papers filed by the Astros state. "Mr. Bagwell is righthanded. He throws righthanded. He also bats righthanded."
Connecticut General will be served with the lawsuit within two weeks.
"Once we have been served with the lawsuit, then we will deal with it as any defendant would," Buthod said. "This is simply a matter of a contract between the Astros and Connecticut General.
"It has nothing to do with the outstanding career that Jeff Bagwell has enjoyed here in Houston."
Detailed medical reports
Bagwell will be at the center of the lawsuit. Three of the 20 pages the Astros filed contain detailed reports from Dr. Andrews and Dr. David Lintner, the Astros medical director.
"Dr. Andrews summarized," the Astros filed, "his conclusions regarding Jeff Bagwell's ability to play during the 2006 season as follows: 'For the record, though, it appears to me he is disabled completely from playing professional baseball at this time unless some type of miracle occurs that is not predictable.' "
http://www.chron.com/disp/story.mpl/sports/3800232.html
