WTC Phase 2 Trial Delayed Until October

By Michael Ha

NU Online News Service, May 28, 3 :27 a.m. EDT?Concerns that courtroom access could be slowed by security problems associated with the Republican National Convention have led a judge to delay the second trial stemming from the World Trade Center insurance dispute. [@@]

U.S. District Court Judge Michael Mukasey in Manhattan, who is presiding over the litigation between developer Larry Silverstein and the Trade Center carriers, said proceedings will be postponed until October, principally because of the GOP Convention scheduled for New York this summer that is expected to take up a great deal of the courthouse's security staff.

Even with a normal staff complement entry lines to the courthouse can be time consuming as personnel there pass visitors through metal detectors and x-ray briefcases, purses and other effects.

Judge Mukasey, who presided over the first Trade Center trial, reached his conclusion as lawyers from both sides involved in the second phase met recently for a hearing in his courtroom. The first trial, which concluded May 3, saw the jury finding that most of the carriers correctly interpreted the extent of the insurance coverage agreements for the Trade Center.

Judge Mukasey had tentatively set August as the starting time for second phase of the case. He said he had reconsidered the issues involved, mentioning the Republican Convention in particular, and has decided to push back the start date.

In the next proceedings Mr. Silverstein is conflict with nine insurers, with $1.13 billion in property coverage money at stake.

At the first trial, Mr. Silverstein lost nearly $2 billion in potential insurance payment when the jury decided the majority of the insurers represented in the trial were bound to a Willis' "Wilprop" form which defines WTC attack as one event and thus leaves no room for Mr. Silverstein's argument that the WTC destruction by two planes represent two insurable events.

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