Marlins Sue LLoyds Over Policy Dispute

Marlins Sue Lloyd's Over Insurance Policy Dispute

Amount to indemnify team for Fernandez's injury questioned

Miami, April 24, 2001 -- According to the Miami Herald, the Florida Marlins have filed suit against underwriters at Lloyd's of London over an insurance policy taken out on pitcher Alex Fernandez. The policy was to cover 75 percent of Fernandez's $7 million annual salary in the case of injury. Persistent shoulder problems have sidelined Fernandez since last season, and the Marlins assert that Lloyd's has not paid the team its agreed upon percentage of the player's salary.

Fernandez's payment by the Marlins is not affected by the relationship with Lloyd's. The player signed a $35 million contract before the 1997 season and continues to receive his salary from the team. The Marlins paid Lloyd's a $731,253 premium for an insurance policy that states the team should receive $22,664.83 for each regular-season game Fernandez misses due to disability. The policy covers "recurrent disability," meaning the team can collect in the event that he participates in less than 25 regular games in one season or 10 games in 12 consecutive months. Fernandez suffered a torn rotator cuff in 1998 which led to his missing the entire season. He pitched in 24 games in 1999 and eight in 2000. He has been on the Marlins' disabled list since May 19, 2000.

The Herald article reports that neither Marlins attorney Michael S. Popok nor Marlins president and general manager Dave Dombrowski would comment on specifics of the suit. The article quotes Dombrowski as saying: "Because it's a legal case, we're not in a position to comment on it any more than you have seen [in the lawsuit]. I can't get into it any more.'' Dombrowski
would not reveal why the underwriters feel they are not responsible for any part of Fernández's contract.

Reportedly, Fernández still hopes to pitch this season. Although having undergone two shoulder surgeries in 17 months, he has continually worked on his own with a personal physical therapist.

The Marlins contend that Lloyd's still owes over $4 million for last season as well as $544,000 thus far in 2001. The civil suit filed in Miami-Dade County court could go to trial if no settlement is reached. Meanwhile, Fernandez has had two shoulder surgeries in the past 17 months and plans to return in May or June after rehabilitation.

Source: Juan C. Rodriguez, "Lawsuit Filed vs. Lloyd's," Miami Herald, 4/25

Amy Armond and Matt Roberts