World Trade Center developer Larry Silverstein has filed suit against a British insurer and its U.S. spin-off for up to $1 billion in unpaid claims from damages from the 9/11 attack on the Twin Towers.
Silverstein Properties brought its action in New York State Supreme Court against British insurer Royal & Sun Alliance and its U.S. subsidiaries, shortly before they split off from each other.
"As a result of dramatic deterioration in the business and finances of Royal Indemnity and the RSA Group's other U.S. operations, the RSA Group is attempting to walk away from its U.S. insureds, including to WTC policyholders," the suit states.
Joining Mr. Silverstein is the Port Authority of New York and New Jersey, which is now developing the main Freedom Tower on the site.
Kedar Bryant, spokesman for Arrowpoint Capital, which took over Royal & Sun's U.S. operations, said the case was without merit.
"These are the same arguments that have been stated and refuted time and time again," he said. "We have paid every cent we currently owe Silverstein Properties and intend to pay any future claim amounts if and when they become due."
Delaware insurance regulators recently approved the sale of Royal & Sun's Charlotte, N.C.-based subsidiary to Arrowpoint Capital Group over the objections of Mr. Silverstein and other WTC developers, among others.
The developers claim of the $255 million in claims only $5.6 million have been paid.
The payments have been tangled up in a number of litigation issues including whether the destruction qualified as one or two claim events and the fact that the Port Authority recently took over the lease from Mr. Silverstein.
Mr. Silverstein won a U.S. Appeals Court ruling that two attacks were involved.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
