Developer Larry Silverstein will make no decision until wellinto next year on whether to appeal a federal judge's ruling lastweek that insurers need not pay $700 million in additional WorldTrade Center rebuilding costs.

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Indeed, Bud Peronne, Mr. Silverstein's representative, said noappeal decision will be made until the appraisal process fordetermining replacement costs is complete, which he does not expectfor several months.

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In last week's ruling, U.S. District Court Judge Harold Baer inManhattan rejected arguments that insurers needed to provide theextra payments for safety and political acceptability as“replacement” costs.

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“If the parties had intended to allow the insureds to take thosefactors into account–i.e., to build a bigger and better building,and thereby recover an additional $700 million–it stretchescredulity to suggest they would not have made this understandingexplicit,” Judge Baer wrote.

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“No American court has ever held that structural changes of thescale and cost that [Mr.] Silverstein envisions are included in the'replacement cost,' let alone 'replacement cost' limited by a'comparable size, material and quality' clause,” the judgewrote.

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Among the insurers involved in the claim were affiliates ofAllianz A.G. Holding, St. Paul Travelers Companies Inc., SwissReinsurance Company and Zurich Financial Services A.G.

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The ruling “will not affect the total amount of insuranceavailable to rebuild the World Trade Center, or negatively impactthe timetable for construction,” Mr. Peronne said in astatement.

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Planning is well underway for the centerpiece of thereconstruction project–the 1,776-foot tall Freedom Tower, whosedesign was the subject of a long public hearing and politicaldebate process. Preliminary sketches have been made for three otherbuildings on the site.

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