Event Description: Ex-Federals Franchise Sued
Source: Washington Post
Three investors in the defunct Washington Federals are accusing the football team's founder of bilking the squad's 45 limited partners of $3 million after the Federals were sold and moved to Florida.
In a class action suit filed in District of Columbia Superior Court, the three demand $100,000 in compensatory damages and $6 million in punitive damages from lawyer Berl Bernhard, who owned the United States Football League team during its two years in the nation's capital.The complaint could be joined by all the limited partners.
Robert Understein, Robert Manfuso and John Kirlin charge Bernhard with 'unlawfully demanding and obtaining' the limited partners' payment of 'additional capital contributions' following the team's sale to Donald Dizney and move to Orlando, Fla. in September 1984.
The suit, filed Wednesday, says Bernhard used the funds 'to pay pre-existing debts' the Federals had run up, primarily the approximately $4 million in loans from the National Bank of Washington.
Bernhard was not available for comment Thursday.
Understein, Manfuso and Kirlin held one-half unit of the team's limited partnership. This means they invested $50,000 in cash and another $100,000 in promissory notes.
The suit claims that Berhard, instead of calling the notes while the team was still operating in Washington, waited until after he sold the team. The suit says Bernhard 'did not have the legal right or power' to make such a move.
The team attracted an average of 13,850 fans during its first season in RFK Stadium and only 7,694 during its second, including one crowd of 4,432. The franchise is now playing as the Orlando Renegades.
Story-(UPI)
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