A federal judge who ruled that the New York-New Jersey Port Authority cannot collect insurance for all the damage done to the World Trade Center by the 9/11 attack, will meet with lawyers in the case in April to determine the next steps in the case.
Monday, in a ruling that favored 10 insurers, U.S. District Court Judge Barbara S. Jones in Manhattan ruled that the PA can only collect insurance only for damage done to Building 6 at World Trade Center and the PATH train station, not for the entire complex.
Judge Jones ruled in favor of insurers, who contended that the PA's insurance policies excluded the rest of the World Trade Center complex because the agency had leased it on July 24, 2001, to developer Larry Silverstein, who bought his own insurance.
Her decision upheld the section of the land-owning agency's policy called "Exclusion f," saying it "applies in the present case and removes the Silverstein Property from coverage under the Port Authority Insurance program."
Mr. Silverstein, as the lessee, was required to obtain property and business-interruption insurance, "with no exclusion for terrorist acts," according to the decision.
Robert Skinner, attorney with the Ropes & Gray firm that represents Lloyd's, said had the PA been successful, insurers would have been responsible for Buildings 4, 5, the twin towers and an underground shopping mall.
However, he said that even with the judge's decision, the case is ongoing because the insurers are disputing the amount of the claim the PA is making for the portion of the complex the judge said is covered by the Authority's policy. The judge is due to meet with attorneys on April 2, he noted.
"They've made a claim that their losses on that portion of the complex are $2.7 billion. We believe it's less than $1.5 billion, which is the policy limit," said Mr. Skinner.
He noted that insurers have already paid out $950 million on the claim.
Other insurers in the case include, Axa Global Risks UK Ltd; Copenhagen Reinsurance Company Ltd; Great Lakes Reinsurance; Houston Casualty Company; QBE International Insurance Ltd.; Sirius International Insurance Corp.; Wuttemberische Versicherung AG; Zurich specialties London Ltd., and Allianz Global Risks US Insurance Company.
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