Attorneys representing insurers who lost their argument to a jury that destruction of the World Trade Center by terrorists was one covered event, not two, are hoping an appeals court will throw out the panel's verdict for lack of evidence.
Last week the U.S. Court of Appeals for the Second Circuit in New York heard legal arguments from eight insurers contending they should not be responsible for paying Silverstein Properties for two occurrences related to the 9/11 terror attack.
Lawyers for Silverstein Properties, holders of the lease on the twin towers, argued against the appeal saying the insurers' case lacks merit.
The appeals court reserved decision and gave no date for a ruling on the case.
Companies involved in the appeal are Allianz Insurance Co., Zurich North America, Travelers Indemnity Co., Gulf Insurance Co., Industrial Risk Insurers, Royal Indemnity Co., TIG Insurance Co., and Twin City Fire Insurance Co.
A ninth insurer, Tokio Marine, has reached a settlement, according to court filings.
Attorneys for the insurers argued in court papers that Silverstein Properties did not prove its case in court, relying on anecdotal evidence. The carriers also contend that the terror attack of 9/11 was one act, not two, and the jury decision should be voided.
The trial court erred, they argued, by not entering a verdict in favor of the defendants for lack of evidence.
The case was heard by U.S. District Court Judge Michael Mukasey in Manhattan.
Attorneys for Silverstein Properties argued that the two planes that struck the twin towers on 9/11 were two separate occurrences. They also argue that the contracts the carriers used do not restrict occurrences, unlike the Willis Property form, which in a separate, earlier trial, found the contract did limit the coverage to a single incident.
There was a total of $3.55 billion in coverage for the one event, but if the jury had ruled the attack was two events, the insurers' liability was put at close to $7 billion.
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