The Washington Redskins don't plan to pay outgoing general manager Charley Casserly's legal bills stemming from a lawsuit filed by Howard Milstein, according to sources close to the situation.
Casserly and former Redskins president John Kent Cooke are being sued by Milstein, a failed bidder for the team who alleges that Casserly and Cooke improperly undermined his attempt to purchase the franchise and Jack Kent Cooke Stadium. Milstein is seeking unspecified damages.
Sources close to new owner Daniel M. Snyder said today that the ownership group believes the estate of late owner Jack Kent Cooke is obligated to pay Casserly's legal bills, and sources said the estate's trustees are scheduled to meet Tuesday to discuss the matter.
The Redskins' corporate bylaws require that Casserly's legal bills initially be covered, although if Casserly is found to have acted improperly, he could be required to return the money and pay for his own subsequent legal expenses.
However, members of Snyder's ownership group maintain that an accompanying letter to their stock purchase agreement with the estate requires the estate to pay Casserly's legal bills, according to sources.
Casserly's attorney, Robert Bennett, sent letters recently to the team and the trustees demanding that Casserly be indemnified for the Milstein lawsuit.
Attorneys for Casserly and Cooke have asked the D.C. federal court in which the lawsuit was filed to dismiss the suit.
Casserly referred questions on the matter to Bennett, who declined to comment. Neither Richard Cass, an attorney for the estate, nor Tom McCormick, an attorney for the Snyder group, was available to comment today.
Casserly has resigned as the team's general manager, effective Sept. 3. He reached a financial settlement with Snyder and agreed to fulfill the remaining two seasons on his contract as a consultant to the new owner. The settlement permits Casserly to accept a job elsewhere after his resignation as GM becomes effective.