This story, in slightly different form, originally appeared in the New York Law Journal.
NEW YORK CITY-Developer Larry Silverstein’s attempt to derail a $1.2-billion settlement of property damage claims filed against airlines and security companies accused of negligence after the 9/11 terrorist attacks was rejected Friday by the US Court of Appeals for the Second Circuit.
Silverstein, the World Trade Center leaseholder, had claimed that the settlement reached last year between plaintiffs and American Airlines, United Airlines and other defendants was collusive and would reduce the money his properties, which refused to settle, could recover. He also contended that the cap on tort recovery against the airlines, imposed by Congress after 9/11 in the Air Transportation Safety and System Stabilization Act, preempted New York State’s “first-come, first served” settlement rule.
Southern District Judge Alvin K. Hellerstein rejected those arguments last July. He approved the settlement and mutual release of claims, ordered all amounts paid credited to the defendant’s liability ceilings under
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