Great Moments in Health Insurance Claims for Injured Players

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From 2006, regarding Jeff Bagwell:

Attorneys for the Houston Astros filed a lawsuit in state district court here Monday afternoon against Connecticut General Life Insurance Co., claiming breach of contract because the insurer denied the Astros’ claim to recoup $15.6 million of injured first baseman Jeff Bagwell’s $17 million contract … The Astros filed the insurance claim late in January, a few days prior to the Jan. 31 deadline. On March 28, Connecticut General rejected the claim, contending Bagwell had not become more disabled since he played in the World Series in October 2005.

From 2003, regarding Randy Myers:

The club contended the famous insurance carrier acted in bad faith when it denied a claim by the Padres over whether the club was due $8 million compensation for the two seasons (1999-2000) that Myers was unable to play because of arm injuries … After filing a claim, the Padres heard nothing from the carrier for 16 months, according to court papers. Lloyd’s balked at paying the claim and, according to court papers, argued two apparently conflicting points. The insurer said that Myers’ disabling injury occurred in April 1999, after the insurance policy expired. Lloyd’s also contended that Myers’ health problems could have been diagnosed as early as 1993 before the policy was enacted.

But sure, even though insurance companies fight $8 million and $17 million claims for years, there is every reason to think that one wouldn’t fight a $114 million claim for A-Rod.  They’d clearly understand that paying up was in the best interest of the Yankees and their fans and do their duty, right?

(thanks to readers @GrandCards and Chris Garber for the links)

Rockies acquire Zac Rosscup from Cubs

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The Rockies announced a minor swap of relief pitchers on Monday evening. The Cubs sent lefty Zac Rosscup to the Rockies in exchange for right-hander Matt Carasiti.

Rosscup, 29, was designated for assignment by the Cubs last Thursday. He spent only two-thirds of an inning in the majors this year and has a 5.32 career ERA across 47 1/3 innings. Rosscup has spent most of the season with Triple-A Iowa, posting a 2.60 ERA in 27 2/3 innings.

Carasiti, 25, spent 15 2/3 innings in the majors last year, putting up an ugly 9.19 ERA. With Triple-A Albuquerque this season, he compiled a 2.37 ERA and a 43/13 K/BB ratio in 30 1/3 innings.

U.S. Court of Appeals affirms ruling that the minor leagues are exempt from federal antitrust law

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The Associated Press reported that on Monday, the U.S. Court of Appeals for the 9th Circuit affirmed a district court ruling which holds that the minor leagues are exempt from federal antitrust law, just like the major leagues.

In 2015, four minor leaguers sued Major League Baseball, alleging that MLB violated antitrust laws with its hiring and employment policies. They accused MLB of “restrain[ing] horizontal competition between and among” franchises and “artificially and illegally depressing” the salaries of minor league players.

The U.S. Court of Appeals said the players failed to state an antitrust claim, as the Curt Flood Act of 1998 exempted Minor League Baseball explicitly from antitrust laws.

This case is separate from the Aaron Senne case in which Major League Baseball is accused of violating the Fair Labor Standards Act. That case was recertified as a class action lawsuit in March. In December, Major League Baseball established a political action committee (PAC), which came months after two members of Congress sought to change language in the FLSA so that minor league players could continue to be paid substandard wages.