S.D.N.Y. Opinion Supports Right to Recover Reinsurance Damages and Interest Dating Back to Terrorist Attacks in 9/11 Litigation

A recent S.D.N.Y. opinion authored by Judge Daniels, IN RE: TERRORIST ATTACKS ON SEPTEMBER 11, 2001, 2018 WL 3323159, in an ongoing multidistrict litigation, concluded that reinsurer-plaintiffs seeking to recover damages from aiders and abettors of the 9/11 terrorists are entitled to recoup amounts paid under reinsurance contracts.  In reaching this conclusion, the District Court held that the plaintiffs could recover under New York law for the payments made on their reinsurance contracts under general principles of equitable subrogation, which are distinct from contractual subrogation rights requiring privity with the insureds. Judge Daniels also ruled that, under both New York and federal law, prejudgment interest should accrue from September 11, 2011, rather than the date of payment on each of the claims for which plaintiffs seeks damages.