World Trade Center developer Larry Silverstein and the Port Authority of New York and New Jersey filed suit today demanding insurers pay what is owed for terrorists' destruction of the Twin Towers.
The lawsuit, filed in New York State Supreme Court in Manhattan, names Allianz, Industrial Risk Insurers, Travelers Indemnity Company, Royal Indemnity Company, Gulf Insurance Company, Zurich American Insurance Company Co. and Employers Insurance Company of Wausau as defendants.
"The states of New York and New Jersey and the city of New York and the Port Authority have made it clear they will not allow foot-dragging insurance companies to impede the ongoing revitalization of downtown Manhattan," Mr. Silverstein said in a statement. "We expect a quick resolution that will force these insurers to finally pay what they owe."
On Friday, New Jersey Gov. Jon Corzine, his New York counterpart, George Pataki, and New York Mayor Michael Bloomberg threatened suit against the insurers if they used new lease arrangements as an excuse to back out of payments.
Some insurers have suggested they might not make future payments owed for redevelopment because the original plan has been changed.
"The financing of the redevelopment plan depends in large part on the property/rental value insurance," the latest lawsuit said. "The defendants, however, have persistently sought to shirk their contractual obligations to pay insurance coverage."
Mr. Silverstein and the Port Authority said in the suit that they are seeking to establish that the reworked plan to develop the site "cannot provide an excuse for any defendant to avoid its obligations."
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