The World Trade Centre's leaseholder has extended its legal battle to recover losses from the 11 September terrorist destruction of the twin towers.
Silverstein Properties has filed a lawsuit against Travelers Indemnity, a subsidiary of Citigroup, to recoup property losses related to the attacks.
The company, which is already locked in a legal wrangle with Swiss Re over its claim, also requested permission to amend a lawsuit to include all other insurers of the World Trade Centre, other than Ace Bermuda and XL Capital.
Silverstein has filed a separate lawsuit against Ace and XL, but Silverstein Properties principal Larry Silverstein said those negotiations are ongoing. He added in a statement that negotiations with the other insurers had "reached an impasse".
Silverstein's lawyers are currently battling to have the World Trade Centre disaster recognised as two events. But Swiss Re claims it never formally committed to the policy wording agreed to by the other insurers.
A single claim would be worth $3.55bn (£2.45bn), but two would top $7bn (£4.8bn).
Silverstein's case against Travelers hinges on a coverage form assembled by broker Willis in July. The form stated that the term occurrence meant "all losses or damages that are attributable directly or indirectly to one cause or to one series of similar causes".
But it is claimed that before this form was finalised, Travelers circulated its own form, which did not refer to a specific definition of "occurrence". Silverstein claims Swiss Re and the other insurers agreed to the terms on this form before agreeing on 26 July to participate in the World Trade Centre insurance programme.
Analysts say the Travelers lawsuit will be a landmark case in determining the way insurers finalise policy terms in the future.
Travelers' exposure to the World Trade Centre is $210.6m (£145.6m), the seventh largest loss among the 25 insurers.
The World Trade Centre's leaseholder has extended its legal battle to recover losses from the 11 September terrorist destruction of the twin towers.
Silverstein Properties has filed a lawsuit against Travelers Indemnity, a subsidiary of Citigroup, to recoup property losses related to the attacks.
The company, which is already locked in a legal wrangle with Swiss Re over its claim, also requested permission to amend a lawsuit to include all other insurers of the World Trade Centre, other than Ace Bermuda and XL Capital.
Silverstein has filed a separate lawsuit against Ace and XL, but Silverstein Properties principal Larry Silverstein said those negotiations are ongoing. He added in a statement that negotiations with the other insurers had "reached an impasse".
Silverstein's lawyers are currently battling to have the World Trade Centre disaster recognised as two events. But Swiss Re claims it never formally committed to the policy wording agreed to by the other insurers.
A single claim would be worth $3.55bn (£2.45bn), but two would top $7bn (£4.8bn).
Silverstein's case against Travelers hinges on a coverage form assembled by broker Willis in July. The form stated that the term occurrence meant "all losses or damages that are attributable directly or indirectly to one cause or to one series of similar causes".
But it is claimed that before this form was finalised, Travelers circulated its own form, which did not refer to a specific definition of "occurrence". Silverstein claims Swiss Re and the other insurers agreed to the terms on this form before agreeing on 26 July to participate in the World Trade Centre insurance programme.
Analysts say the Travelers lawsuit will be a landmark case in determining the way insurers finalise policy terms in the future.
Travelers' exposure to the World Trade Centre is $210.6m (£145.6m), the seventh largest loss among the 25 insurers.
