Zelle Hofmann Concludes Historic $1.2 Billion 9/11 Subrogation Settlement
June 16, 2011An historic settlement agreement resolving a multi-billion dollar subrogation action arising from the 9/11 terrorist attack has become final. The $1.2 billion settlement resolved claims brought by several commercial property insurers who insured the World Trade Center Complex and its various tenants against airlines, airline security companies, and others alleged to be responsible for the 9/11 terrorist attack. It is reported to be the largest subrogation recovery ever obtained by the property insurance industry.
After seven years years of litigation and several weeks of mediation, the settlement was reached in early 2010. It was then presented to United States District Court Southern District of New York Judge Alvin K. Hellerstein for approval. Judge Hellerstein approved the settlement over the objection of Larry Silverstein, the lessor of the World Trade Center Complex, whose uninsured loss claim remained pending. In April, the Second Circuit Court of Appeals affirmed Judge Hellerstein's approval of the settlement. The settlement recently became final after Silverstein confirmed his intent not to seek further review by the Supreme Court of the United States.
Zelle Hofmann Partner Steven Badger, who served on the Property Damage Plaintiffs' Executive Committee representing the interests of the settling subrogated insurer plaintiffs, stated, "We are pleased to finally bring this important litigation to a conclusion." Badger went on to state, "This case was like no other subrogation action ever pursued. The size of the claims, number of involved parties, and historic significance of the subject matter made it a very difficult case to resolve."
The 9/11 subrogation actions were consolidated with claims brought by over 80 wrongful death victims who chose to proceed with litigation rather than accept payments from the 9/11 Victims Compensation Fund. All but one of these claims have also been settled, with the remaining claim scheduled to go to trial in November.
For questions pertaining to this historic settlement, please contact Steven Badger at (214) 749-4207 or sbadger@zellelaw.com.
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