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In re September 11 Litigation | 280 F.Supp.2d 279 (2003)
If someone negligently burns down your house, what damages are you entitled to? Can you recover the full replacement value of your home, or will your recovery be more limited? We explore that question in the Two Thousand Eight case In re September Eleventh Litigation.
The Port Authority of New York and New Jersey is a not-for-profit bi-state agency. In Nineteen Sixty-Five, the Port Authority began construction of the World Trade Center in lower Manhattan. The project’s aim was to preserve the economic well-being of the area. Although the World Trade Center initially struggled, it ultimately became a commercial success.
In the late Nineteen Nineties, the Port Authority sought to privatize the World Trade Center. In April of Two Thousand One, the Port Authority accepted the bid of real estate developer Larry Silverstein to purchase ninety-nine-year net leases on towers one, two, four, and five. The leases were held by several of Silverstein’s companies, which we’ll collectively refer to as World Trade Center Properties, or W T C P. W T C P agreed to pay approximately two point eight billion dollars for the leases. The transactions closed, and the net leases were conveyed to W T C P in July of Two Thousand One.
On September Eleventh, Two Thousand One, terrorists hijacked two planes and flew them into towers one and two. Both towers collapsed, destroying towers four and five in the process.
W T C P filed suit against various airline and aviation companies, which we’ll refer to as the aviation defendants, alleging they were negligent in, among other things, allowing the hijackers to access the planes. W T C P sought to recover the replacement value of the four towers, which it alleged to be sixteen point two billion dollars. The aviation defendants moved for summary judgment and argued that the towers’ replacement cost wasn’t the proper measure of damages.
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