Judge: Silverstein can't force insurers to pay his legal fees

June 8, 2006

NEW YORK -- A judge ruled Thursday that World Trade Center leaseholder Larry Silverstein cannot force insurance companies to pay his legal fees related to litigation stemming from the Sept. 11 terrorist attacks.

U.S. District Judge Alvin K. Hellerstein said it would be unjust for Silverstein to make the companies pay his defense costs when all but one of more than a dozen companies had made it clear in their policies that they would not cover the costs.

Hellerstein, who is considering some 3,000 lawsuits related to the attacks, wrote that he had made a similar ruling once before.

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Silverstein, who leases the trade center site from the Port Authority of New York and New Jersey, has had to pay for the defense in about 300 lawsuits filed by or on behalf of people killed or injured in or around the twin towers.

The lawsuits allege breaches of duty of care by the Port Authority or its lessees.

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