WTC ATTACKS WERE TWO EVENTS, SAYS JURY:

Larry Silverstein’s long and seemingly quixotic battle to collect twice from the same insurance loss has paid off with his first big win, as a jury ruled that the World Trade Center attacks did indeed constitute two occurrences. This may double Silverstein’s recovery to $2.2 billion. Silverstein Properties held a master lease on the buildings.

In the first trial, which ended last April, jurors had determined that the attacks, although carried out by two hi-jacked airplanes, constituted a single occurrence within the meaning of a binding form prepared by Willis, the WilProp form. As a result Swiss Re, a number of Lloyd’s insurers, Chubb and several other companies were held responsible for one, rather than two, payments. The second trial determined the responsibility of those insurers, who could not prove that they relied on the wording of the WilProp form. The defendants were: Allianz Global Risks, St. Paul /Travelers, Industrial Risk Insurers, Royal & SunAlliance, TIG Insurance, Tokio Marine & Fire, Zurich Financial and Twin City Fire Insurance.

The question of liability ultimately turned on the interpretation of the wording contained in a binding form prepared by Travelers, which did not contain the restrictive definition of an occurrence, as was the case with the WilProp form. The jury therefore found that the insurance binders–no formal written policies had been executed on Sept. 11, 2001–should be interpreted to encompass two separate attacks. The actual amount of loss is also in dispute with a specially appointed arbitration panel engaged in trying to determine the exact amount. Swiss Re has not joined in those proceedings. There is a third trial scheduled to determine the amount of damages, though the matter may be settled out of court before then.