9/11: Insurers to pay billions
2004-12-07 08:01
New York - A jury in New York ruled on Monday that the September 11 2001 attack on the World Trade Centre was two events, paving the way for developer Larry Silverstein to claim an extra $1.1bn.
The trade centre was insured for a total of $3.5bn with a dozen insurance firms.
Silverstein, 73, took all the carriers to court, claiming that he should receive a double payout on the grounds that the twin towers' destruction by two hijacked planes constituted two attacks.
Tuesday's decision went against nine companies who carried $1.1bn of the insurance total. The firms had argued that the two strikes on the trade centre were part of a single, continuous, planned attack.
'Thrilled'
"I am thrilled with today's victory," Silverstein said in a statement.
"The decision means an additional billion dollars of insurance proceeds will be available, which, together with Liberty Bonds, will ensure a timely and complete rebuild of the World Trade Centre," he 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."
Earlier this year, Silverstein had lost a similar case against a dozen other carriers who had agreed to a preliminary insurance policy that, another jury decided, defined the attack as a single event.
The defendants in that case included Swiss Re, which was alone liable for a single payout of $880m.
The cases have been complicated by the fact that Silverstein took over the trade centre lease just six weeks before the attack, raising questions over the precise nature of the insurance policies in force when the planes hit.