Silverstein Can't Shield WillisTalks
By E.E. Mazier
NU Online News Service, May 21, 10:40 a.m. EST?Silverstein Properties must reveal details of its discussions with its broker related to the firm's claim that the World Trade Center destruction involved two attacks, a judge has ruled.
The decision by U.S. District Court Judge John S. Martin Jr., sitting in Manhattan, involves talks that the Trade Center leaseholder held with Willis Group Holdings.
Judge Martin granted a motion Wednesday by Travelers Indemnity Co. and other insurers, including Swiss Re, to compel testimony by Willis about post-Sept. 11 communications it had with Silverstein's attorneys involving the disputed question of whether that day's events involved one or two attacks.
The motion was made in an action filed to clarify the extent of the liability of Swiss Re and several other layers of insurers in connection with the toppling of the Twin Towers.
Judge Martin rejected Silverstein's contentions that the communications between Willis employees and the Wachtell, Lipton, Rosen and Katz law firm were shielded by attorney-client privilege and the related attorney work-product privilege.
The insurers have been vigorously attacking real estate developer Larry Silverstein's $7 billion insurance claim. They have maintained that the toppling of the WTC by terrorists was one occurrence, which would limit recovery by Silverstein to $3.5 billion.
The motion, filed in May, had asked Judge Martin to require the production of "highly relevant facts surrounding Silverstein's post-loss reinvention of the WTC insurance coverage placement history."
Swiss Re has claimed that the Silverstein contention that the collapse of the Twin Towers constituted two insurable occurrences was a "post-loss creation" by Mr. Silverstein and his attorneys.
According to the motion papers, the Silverstein parties tried to invoke the various privileges to keep Willis from revealing in depositions certain facts surrounding the alleged concoction of the two-occurrence theory.
Swiss Re said that this theory directly contradicted Willis' earlier concession that the Sept. 11 events constituted only one insurable occurrence as per the controlling insurance documents.
Jacques Dubois, chairman, chief executive officer and president of Swiss Re America Holding Corp., said, "We are pleased that Judge Martin has agreed with our position that what took place after Sept. 11 between Silverstein and its broker Willis is of vital interest in seeing the truth come out."
Mr. Dubois said he is confident that the record "will clearly show that Willis believes --as does Swiss Re --that the coordinated Al Qaeda attack on the World Trade Center resulted in one insurance loss and that the Wilprop policy form controls in all respects."
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