A Manhattan appeals court today rejected developer Larry Silverstein’s challenge of $1.2 billion in settlements to other Ground Zero businesses, shrinking the amount he can collect over the Sept. 11 terror attacks.
The U.S. Second Circuit Court of Appeals said Silverstein — who leased the World Trade Center two months before its destruction — “presented no evidence of the bad faith necessary to draw into question the settlement of this case.”
The three-judge panel also upheld Manhattan federal Judge Alvin Hellerstein’s application of New York’s “‘first-come, first-served’ settlement rule,” noting that the deal will “properly reduce the…remaining liability” of the defendants in the case.
That’s because a federal law passed shortly after the attacks limited potential damages to the insurance coverage of the airlines whose planes were hijacked.
Twenty-one companies — including Silverstein’s World Trade Center Properties — sued United and American airlines and their security companies, with 18 cutting a deal last year.
Although the total amount of the available insurance is confidential, court papers say the agreement exhausted the coverage of Huntleigh USA Corp., which screened passengers on United flight 175, which crashed into the south tower.
Lawyer Steven Badger, speaking on behalf of the companies that settled, said: “We are hopeful that this decision will bring an end to Mr. Silverstein’s appeals and allow all of these plaintiffs, including many small businesses destroyed in the attack, to finally bring this long-running litigation to a conclusion.”
A Silverstein spokesman said: “We accept the court’s decision and are pleased this issue has finally been resolved.”
“With this ancillary matter behind us, we will once again renew our efforts to get a trial date as soon as possible, while we also focus on the rebuilding of the World Trade Center site,” spokesman Bud Perrone said.
“With the 10th anniversary of 9/11 fast approaching, the time is now for the courts to pick up the pace and resolve all of the legal cases arising out of those devastating attacks.”
