Developer can't recover World Trade Center damages from airlines

NEW YORK Thu Jul 18, 2013 4:51pm EDT

World Trade Center developer Larry Silverstein speaks at an event to update the public on the pace of development at the site in New York September 7, 2011. REUTERS/Lucas Jackson

World Trade Center developer Larry Silverstein speaks at an event to update the public on the pace of development at the site in New York September 7, 2011.

Credit: Reuters/Lucas Jackson

NEW YORK (Reuters) - Developer Larry Silverstein cannot recover billions of dollars from airlines over the September 11, 2011, destruction of the World Trade Center in New York because insurers have already compensated his company, a federal judge ruled on Thursday.

U.S. District Judge Alvin Hellerstein said Silverstein's company has recovered more than $4 billion from its insurers.

Silverstein, 82, had sought to pursue damages at a trial from United Airlines and American Airlines, whose planes crashed into the World Trade Center.

"If this case were to go forward," Hellerstein said to a packed courtroom, Silverstein "would not be able to recover anything against the airlines."

Silverstein's World Trade Center Properties was seeking to recover as much as $3.5 billion from the airlines, including United Airlines, now United Continental Holdings Inc, and American Airlines and its parent, AMR Corp, which he accused of negligence in the attacks.

"We did not believe that the plaintiff could be permitted any further compensation and we are pleased the judge ruled in our favor," Christen David, a spokeswoman for United, said after the ruling.

We are gratified by the judge's decision," said American Airlines spokesman Mike Trevino.

Hellerstein's ruling concluded a four-day trial in federal court in New York that tasked him with deciding, without a jury, if Silverstein's insurance recoveries precluded him from seeking damages from the airlines.

"My holding is that they do," Hellerstein said Thursday.

Rich Williamson, a lawyer representing Silverstein's company, said after the hearing that the company planned to appeal the decision to the 2nd U.S. Circuit Court of Appeals.

"We will not rest until we have exhausted every option to assure that the aviation industry's insurers pay their fair share toward the complete rebuilding of the World Trade Center," Silverstein said in a later statement.

Hellerstein, a Bronx native who has presided over a several cases related to the attacks, commended Silverstein for his efforts to rebuild the World Trade Center.

"I look upon this as an American story, rising out of the ashes of destruction," he said of the rebuilding effort.

In January, Hellerstein will hear a trial pitting Cantor Fitzgerald, which lost 658 employees in the attacks, against American Airlines. The financial services firm sued the airline over lost business and the destruction of its offices in the World Trade Center.

The cases are World Trade Center Properties LLC, et al. v. United Airlines Inc; World Trade Center Properties LLC, et al. V. American Airlines Inc, et al, v. American Airlines Inc et all, U.S. District Court, Southern District of New York, Nos. 08-3719 and 08-3722.

(Reporting by Bernard Vaughan; Editing by David Gregorio)

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Comments (5)
mrivera101 wrote:
September 11, 2011?

Jul 18, 2013 5:08pm EDT  --  Report as abuse
Eugene31 wrote:
Is Silverstein kidding? This is the guy who bet stock trades on the whole thing. Get out of the country before the Feds catch you, Larry.

Jul 18, 2013 5:11pm EDT  --  Report as abuse
corrector wrote:
Correction: First line of article should be “September 2001″, not “2011″.

Perhaps Mr Silverstein should be happy that he didn’t have to pay for the removal of the Asbestos from the trade towers. That double indemnity policy he took out in the months before 9/11 already paid him more than he deserved.

Jul 18, 2013 5:20pm EDT  --  Report as abuse
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