[edit] September 11, 2001 attacks
[edit] Dispute with insurers
As a private developer with a 99-year lease on the World Trade Center, Silverstein insured the property. Following the September 11, 2001 attacks, he sought payment for the destruction of the towers as two incidents. The two dozen insurers held that it was one incident. If it were considered to be a single incident, the payout would be $3.55 billion and if it were two incidents, it would be $7.1 billion. Silverstein sued the insurers. In October of 2006, the U.S. Court of Appeals for the Second Circuit upheld a jury verdict from the United States District Court for the Southern District of New York that the attacks must be considered a single occurrence. Yet, the same court also upheld a victory in the second phase of trial which was awarded to Mr. Silverstein in which temporary insurance policies in effect when the buildings were destroyed did require that the attack be treated as two occurrences. Thus, nine insurance companies will pay double the approximately $1 billion in coverage under their policies.[10]
On December 6, 2004, a federal jury ruled in favor of Silverstein giving him an additional $1.1 billion from nine insurers, declaring it to be two "occurrences". [11] However, in a previous trial, a different federal jury delivered a mixed verdict which highly favored insurers on April 29, 2004 [12]
At dispute in the trial were interpretation of standard forms used in the application for property insurance and when particular insurers saw which documents.[13]
In total, Silverstein was awarded nearly $5 billion in insurance money following the destruction of the Twin Towers [14]. He plans to use some or all of the settlement to rebuild. [15] The World Trade Center had a total of 24 insurance policies. In 2007, 6 years after the attacks, Silverstein and the Port Authority of New York and New Jersey filed a $1 billion lawsuit ($250 million in unpaid claims and $750 million in damages) against Royal & Sun Alliance Group Plc and its U.S. affiliate.[16]
Silverstein's lease with the Port Authority for the World Trade Center requires him to continue paying $102 million annually in base rent.[17] He is applying insurance payments toward the redevelopment of the World Trade Center site.[18]