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9/11/01 Trial: American, United Travel 'Back to the Future'

September 5, 2012
[ by Howard Haykin ] It's been years since the shocking 9/11/01 terrorist attacks on New York, Pennsylvania, and Washington, D.C.  Yet, time has not dulled the desire of the owners of the World Trade Center site to collect compensation for damages incurred on that fateful day. And so, the tragedy continues for both AMR Corporation's American Airlines and United Continental Holdings Inc. A federal judge ordered both to stand trial on negligence claims tied to the hijacking of airlines used in the 9/11/01 attacks that killed about 3,000 people in the 3 Eastern locales - New York, Pennsylvania and Washington. World Trade Center Properties LLC, which owned the twin skyscrapers ... in lower Manhattan destroyed in the attacks, sued the airlines in 2008 alleging negligence against the carriers for allowing terrorists to board and hijack the planes that were flown into the buildings.  U.S. District Judge Alvin Hellerstein in Manhattan on Tuesday said a trial is required. On the day of the attacks, 2 planes were hijacked and flown into the World Trade Center.  American Airlines Flight 11 crashed into the North Tower of the WTC;  minutes later, United Airlines Flight 175 crashed into the South Tower. After the attacks, the owners sued insurers, eventually settling for $4.09 billion, the judge said. World Trade Center Properties further sued the airlines for $8.4 billion, or the estimated cost of replacing the 2 towers as well as claims of negligence, the judge said in Tuesday’s ruling.  Judge Hellerstein said he previously rejected the airlines’ bid for summary judgment, or a ruling before trial. Limited Recovery. Judge Hellerstein also limited the owners’ recovery, setting a $2.805 billion value on the destroyed lease, as of the day of the attack, 9/11/01.  That is the price the World Trade Center Properties agreed to pay the Port Authority of New York and New Jersey for the lease a few months before the 2001 attacks, he said. The judge rejected the air carriers’ argument that since the buildings’ owners recovered $4.09 billion from insurance, World Trade Center Properties couldn’t also recover the $2.8 billion sought for the lease, saying in his ruling:  “On this record, before trial, I am not able to make such findings.” Desmond Barry, a lawyer representing the airlines, didn’t provide any comments. The case is: In Re September 11 Litigation, 21-MC-101, U.S. District Court, Southern District of New York (Manhattan). [Bloomberg, 9/4/12].