[Shadow_Group] Fw: WTC Leaseholder Silverstein Loses Insurance Battle

[shadowgroup-l at lists.resist.ca]

AR Action Report Online.

Reuters.


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Wednesday, December 6, 2004


Developer Wins Victory in WTC Case

By Gail Appleson and Paul Thomasch

[Every cloud has a
silver lining]

NEW YORK (Reuters) - A New York developer hoping to rebuild the destroyed
World Trade Center on Monday won a major victory against his insurers,
when a jury decided the hijacked airline attacks of Sept. 11, 2001, were
two separate events. The verdict in U.S. District Court in Manhattan
means the site's leaseholder, Larry Silverstein, could get twice as much
money from his policies with the nine of the twin towers' insurers to
finance new construction.

Silverstein, who signed his lease just six weeks before the towers were
destroyed, said he was "thrilled" by the decision. One of the insurers,
Allianz AG, said it was "disappointed" and pledged it would appeal the
verdict if necessary.

Silverstein has fought the insurance companies in court with the argument
that he was owed $7 billion -- double the amount of his $3.5 billion
policy -- on the grounds that the attacks on the towers were two separate
events.
Even winning this case, the most he could realize is less than $5
billion. Under this decision, he could get $2.2 billion but a separate
appraisal phase is still pending that could affect that payout.
Silverstein has vowed to restore 10 million square feet of office space
on what has become known as Ground Zero. The verdict by the jury after 11
days of deliberations "will ensure a timely and complete rebuild of the
World Trade Center," Silverstein said. "I strongly felt, and the jury
agreed, that the destruction of the Twin Towers by two separate airplanes
at two separate times was two separate occurrences and that these
insurers have an obligation to pay their fair share to help make Lower
Manhattan whole again," he said in a statement.

Silverstein, one of New York's best-known developers, leased the 16-acre
(6.4- hectare) complex that was destroyed by Islamic militants who flew
two hijacked planes into the landmark towers. Nearly 2,800 people died
and the buildings collapsed. This was the second trial resulting from
Silverstein's efforts to collect double the insurance he bought from a
syndicate of 23 carriers two months before the trade center was
destroyed.

He lost a first round in May when a jury ruled in favor of a dozen or so
insurers, including the largest insurer, Swiss Re, and decided the attack
by the two hijacked planes was one event, not two events as Silverstein
argued. The case involves: Allianz Global Risks U.S Insurance Co., a unit
of German insurer Allianz AG; Travelers Indemnity Co. and Gulf Insurance
Co., now both part of St. Paul Travelers Cos. Inc.; Industrial Risk
Insurers, owned by General Electric Co.; Royal Specialty, owned by
British insurer Royal & SunAlliance at the time of the attack; TIG
Insurance Co., a unit of Canada's Fairfax Financial Holdings Ltd.; Tokio
Marine and Fire Insurance Co., part of Japan's Millea Holdings Inc.; Twin
City Fire Insurance Co., a unit of Hartford Financial Services Group Inc.
and Zurich American Insurance Co., a unit of Swiss insurer Zurich
Financial. A portion of Allianz's policy was covered by French reinsurer
Scor.

Allianz spokeswoman Sabia Schwarzer said the company would "press forward
with a court-supported appraisal process that we believe will establish
that the Silverstein parties did not sustain covered losses in excess of
one policy limit." She said Allianz would "pursue all our legal remedies,
including, if necessary, an appeal to the second-circuit court of
appeals.

 

 



 WTC Leaseholder Silverstein Loses Insurance Battle
 Part of an $8 billion (£4.47 billion) public fund to revitalise New
York's financial district is diverted to subsidise luxury housing and
office blocks
 Sept 11, 2001: Larry Silverstein's coveted deal went down in dust. Vows
to rebuild twin towers. Jewish Magnate had just signed $3.2 billion deal
on WTC towers
 German insurance giants sue Twin Towers' Silverstein: Attack was one
insurable event, not two | Click for interesting USA Today display of
Sept.11 flight paths
 Can't Double-Dip Insurance Claim World Trade Center Developer Larry
Silverstein Suffers Insurance Setback

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