WTC case continues as first attack remembered.

(From Insurance Day)

Byline: Richard Banks

AS New Yorkers last week marked the 11th anniversary of the first World Trade Center attack, there was no let-up in the legal argument between complex leaseholder Larry Silverstein and his property insurers over the September 11, 2001 tragedy.

It was also reported in New York that Mr Silverstein has spent around $1.3bn of the insurance proceeds he has already received. That cash includes money received on business interruption policies. According to reports in the New York press, around $100m has gone to lawyers involved in arguing his case with the property insurers. Mr Silverstein has also reportedly spent more than $700m buying-out lead mortgage lender on the twin towers GMAC, as well as the retail leaseholder and its lender.

Judge Michael Mukasey appeared unhappy at the reports and after complaints from Mr Silverstein's lawyers that the coverage might affect the decision, he told the jury to avoid reading newspaper stories about insurance on the World Trade Center complex.

Events in the courtroom last week were dominated by evidence from Paul Blackmore, a London broker at Willis. He testified that he had sent the so-called WilProp form, under which the September 11 attacks would be defined as one event, to Swiss Re on June 25, 2001. But Mr Blackmore told the court that Swiss Re had requested many changes to the WilProp wording which had not been resolved by the time the insurance coverage became effective on July 18.

He agreed with Silverstein lawyer Herbert Wachtell, who asserted that Swiss Re had not accepted the WilProp form.