The jury verdict finding that negligence by the agency that owns the World Trade Center led to the 1993 garage-bombing was only a preliminary victory for seven insurers with $21 million in subrogation claims, a lawyer for the carriers said.
Unless there is a settlement, litigation is likely to continue for an "extended period," explained Gerard Belz, an attorney with Cozen O'Connor in Philadelphia.
The 1993 terrorist attack on the Twin Towers pales by comparison with the WTC's ultimate destruction in 2001, but the event was huge at the time, killing six people, injuring more than 400, and forcing thousands to flee down the stairs through choking clouds of black smoke.
Mr. Belz' firm was on the plaintiffs' lawyers steering committee that, in addition to bringing the case for the dead and injured, represented six insurers seeking recovery of claims monies they paid to 40 affected businesses represented. Two other carriers were represented by other firms.
The defendant Port Authority of New York and New Jersey, the WTC's bi-state operating agency, has said it will appeal the verdict, which was returned last month by a Supreme Court Jury in Manhattan, a county level tribunal.
According to the jury, the Port Authority was 68 percent liable for the terrorist attack in the center's underground garage for failing to take recommended safety and loss control measures, while the terrorists were 32 percent liable.
Mr. Belz said that among the insurers his firm represented was the lead carrier, St. Paul-Travelers, as well as Aetna, Atlantic Mutual, Fireman's Fund and CIGNA (now ACE. He said the losses involved property damage, loss of income and business interruption.
Mr. Belz said that attorneys are waiting to see what post-trial motions the Port Authority files. He said they can move for a new trial and beyond that an appeal of the verdict.
He noted that the Port Authority, even before trial, had once taken the case all the way to New York's highest court, the Court of Appeal, and to the Appellate Division twice.
If the plaintiffs continue to be successful, Mr. Belz said it is still unknown whether the court will group cases together or require individual damage trials.
He noted that over the years since the event, there have been occasional settlement talks with the Port Authority, and voiced a hope that "perhaps this verdict will result in the resumption of discussions."
Mr. Belz said the trial had involved a massive legal effort by both sides, with plaintiffs employing jury consultants and focus groups to help them shape their arguments.
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