A Ropes & Gray litigation team representing London insurance market clients in litigation over 9/11 World Trade Center coverage won an important victory February 25, 2008. The U.S. District Court for the Southern District of New York granted Ropes & Gray's motion for summary judgment, ruling that the Port Authority of New York and New Jersey is not entitled to a second round of insurance payments -- potentially totaling $1.5 billion or more -- for the World Trade Center property it leased to developer Larry Silverstein shortly before 9/11.

Ropes & Gray lawyers had previously led the London clients to victory over Silverstein in a 2004 jury trial regarding his coverage. Following that outcome, the Port Authority sought to recover additional amounts for the same property under its separate policies -- allegedly to cover the resulting "shortfalls" under the Silverstein insurance.

In the February 25 decision, U.S. District Judge Barbara S. Jones embraced Ropes & Gray's arguments, ruling that the properties leased to Silverstein were no longer covered under the Port Authority's insurance policies once Silverstein took control of the properties. Silverstein was obligated under his leases with the Port Authority to rebuild the WTC if it was destroyed, and this served to indemnify the Port Authority within the meaning of a policy exclusion.

The Ropes & Gray team representing the London insurers includes Ken Erickson, Matt Burke, Rob Skinner, Chris Green, Bryan Diederich, Steven Goldschmidt, Kate Volovski, David Przygoda, Colleen Kelly, Sarah Soubosky, Caitlin Grasso, Alisa Surenskaya, and Dave LaCombe.

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