ContractsProf Blog

Editor: D. A. Jeremy Telman
Valparaiso Univ. Law School

A Member of the Law Professor Blogs Network

Tuesday, June 28, 2005

Court rejects WTC owner's damages theory

World Trade Center owner Larry Silverstein has lost another round in his battle with insurance companies over the claims that arose out of the September 11 terrorist attacks.  Judge Michael Mukasey of the U.S. District Court for the Southern District of New York has held that insurers will be required to pay the "actual cash value" of the destroyed property, but only the "replacement cost" of the structure.  It is estimated that the cost to rebuild is less than the value of the buildings before their destruction.

Unlike many insurance contracts, which give the insured the right to choose which measure to accept, SR International Insurance used a form that specified that cost of replacement was the "default" measure of damages.

http://lawprofessors.typepad.com/contractsprof_blog/2005/06/court_rejects_w.html

In the News | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef00d835512fc769e2

Listed below are links to weblogs that reference Court rejects WTC owner's damages theory: