Trade Center Judge: No Contempt For Silverstein
By Michael Ha
NU Online News Service, March 22, 11:42 a.m. EST, New York?A federal judge said today he would not hold World Trade Center leaseholder Larry Silverstein in contempt for violating a gag order on parties involved in the Twin Towers insurance coverage dispute.[@@]
U.S. District Court Judge Michael Mukasey's ruling came despite his finding that Mr. Silverstein's testimony about remarks he made at a press conference didn't add up.
"If Mr. Silverstein were found guilty [of contempt], it would be prejudicial," the judge said, adding that Mr. Silverstein's comments do not seem to have affected jurors.
During a Ground Zero news conference on March 15, Mr. Silverstein criticized his insurers in the case for refusing to pay him the $7 billion that he says he deserves. "We're trying to get them to fulfill the responsibilities that we paid for when we paid the premiums on the policies," he told reporters. But, he added, "instead of getting insurance, we've got ourselves a massive amount of litigation.
Speaking at the new 7 World Trade Center building currently under construction, Mr. Silverstein also said rebuilding the WTC site would cost roughly $12 billion, much higher than some earlier estimates. "We're fighting hard with the insurance companies to achieve the money that's going to be necessary" to rebuild, he said.
Called to the stand to explain his comments last week, Mr. Silverstein had said that his staff told him in a conference call that the gag order was lifted March 10.
Judge Mukasey noted that in the same testimony, Mr. Silverstein said his remarks were inadvertent and made because of his frustration with the legal system. Judge Mukasey said if Mr. Silverstein thought the gag order was off, then his comments had to have been planned.
He also remarked on the fact that Mr. Silverstein, who had previously bridled at the gag order, could not recall who said it had been lifted. Mr. Silverstein, he said would doubtless have discussed the point with his lawyers.
The leaseholder's testimony was "counterintuitive and contradictory," said the judge. If further such incidents occur the judge said the judicial balance for Mr. Silverstein could change.
Had Mr. Silverstein been found guilty he could have faced monetary penalties and a mistrial could have been declared.
After his press conference, the Judge has barred Mr. Silverstein from sitting in the courtroom during testimony telling him he would "have to rely on his representatives to keep him informed about the trial's progress." He will, however, be back in court when he takes the stand to testify on behalf of his lawsuit.
I have to control people here in my courtroom," said the judge. "Apparently there is so much money at stake here, people are willing to do anything."
The lawyers for Mr. Silverstein had urged the judge not to go on with the contempt hearing because of the danger of influencing jurors through negative publicity.
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