Quote:
Originally Posted by valo403
You're still missing the point that legal insurance policies don't cover debts that you willingly enter into.
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Insurance policies cover whatever the hell your willing to pay for. The more they cover the more you pay, knowing they were treading on dodgy ground, the city mave have, for a crap load of dosh, inserted a specific rider covering them in the event of the payments being ruled illegal.
If the GI takes the city to court and the court rules the payment of 25 million is in breach of the gifting law then the city can't pay it, that is cut and dry.
At that point the NHL has 2 choices, eat the 25 million or take the agents for the city to court for entering into a legal agreement they had no authority to sign, my guess would be, they (the mayor, the city manager and the like) are covered by insurance while acting in good faith for the city, therefore when they lose the case and the court orders them personally to pay the NHL, the insurance would pick up the tab, technically this isn't insurance paying the debt for the city.
It is also possible their is a clause in the contract saying in the event of the 25 million being ruled a gift the city isn't obligated to pay it and the NHL eats the cost, I doubt the NHL would have signed on to that though.