The Port Authority, et. al., follow through on their threat to sue Larry Silverstein’s insurers–because they haven’t promised that they won’t try to get away with paying less?
Statement after the jump.
The Port Authority of New York & New Jersey
June 26, 2006
Statement By The Port Authority of New York and New Jersey Regarding World Trade Center Insurance Issues
Today, the Port Authority, together with the Silverstein and retail World Trade Center net lessees, filed an action in the Supreme Court of the State of New York, New York County, against seven of the insurance companies participating in the net lessees property damage coverage applicable to the events of September 11, 2001 – Allianz Insurance Company; Industrial Risk Insurers; Travelers Indemnity Company; Royal Indemnity Company; Gulf Insurance Company; Zurich American Insurance Company; and Employers Insurance of Wausau.
Over the last six weeks, we have tried to obtain confirmation from these insurers that they will not use the Conceptual Framework – an agreement that realigns the interests in the World Trade Center site in order to facilitate its prompt redevelopment – as an excuse to avoid their insurance obligations. Time and again, they have refused to provide assurance that the insurance recovery will not be impacted by the Conceptual Framework. Not having received these assurances, we have brought an action in order to enlist the aid of the Court in ensuring the prompt redevelopment of the World Trade Center site. The complaint seeks a declaration that the Conceptual Framework does not impact the insureds’ rights to recover fully all amounts currently due and to be paid in the future by these insurers.