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July 22, 2013 - Locke Lord Partners Ann Taylor and T. Patrick Byrnes won a major victory for client Globe Aviation Services Corporation as part of a ruling late last week in the U.S. District Court for the Southern District of New York that denied World Trade Center developer Larry Silverstein from receiving billions of dollars in damages from airlines and pre-board screening companies in relation to the 9/11 attacks.
Silverstein was attempting to recover $3.5 billion from United Airlines (now United Continental Holdings), American Airlines and multiple other aviation defendants, accusing them of negligence in relation to the attacks that occurred on September 11, 2001. Globe Aviation Services Corporation provided pre-board screening services for American Airlines and was a co-defendant in the case.
Because Silverstein had already collected $4.9 billion from his first-party property insurers for property damage and lost rental income, he wasn't permitted to collect twice for the same losses under New York law, U.S. District Judge Alvin K. Hellerstein ruled Thursday.
World Trade Center Properties had originally sought in excess of $13 billion in damages, but a series of successful partial summary judgment motions reduced that number to $3.5 billion, said Taylor, the Chair of Locke Lord's Aviation Practice Group.
"We have always maintained that our client bore no liability for the tragic events of 9/11," Taylor said. "Aside from liability, we also contended that WTCP wasn't entitled to recoverable damages because it was compensated by insurance recoveries and New York's collateral offset laws prevent double recovery. The judge agreed with our position regarding New York's collateral offset law on all points."
Taylor said the Court's decision resolves the final case pending against Globe Aviation Services Corporation, which has been a Locke Lord client since the 9/11 attacks.
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