World Trade Center Developer Says United & American Still Owe Him Billions

In a second round of appeals, the World Trade Center developer claims he is still owed billions by the parent companies of United and American Airlines. 

The developer of the Freedom Tower and the new World Trade Center complex is heading back to court in an attempt to claim damages from the parent companies of American Airlines and United Airlines.

Reuters reports arguments were heard by three judges of the Second U.S. Circuit Court of Appeals on Wednesday in the cases of World Trade Center Properties against American, United and the property developer’s insurance company.

Attorneys representing Larry Silverstein and his company, World Trade Center Properties, are seeking the right to claim damages from both airlines for additional costs in rebuilding the World Trade Center complex, including lost rent revenue.

Reuters previously reported that the lawsuit claimed the two airlines were negligent in preventing the September 11 terrorist attacks.

The latest chapter attempts to overturn a previous ruling by the lower court. At the conclusion of a four-day civil trial in July 2013, Silverstein’s first lawsuit for compensation from United Continental Holdings and American Airlines Group Inc., formerly AMR Corp — the parent companies of United and American, respectively — was denied by U.S. District Judge Alvin Hellerstein.

According to Reuters, the judge told Silverstein that he and his company “would not be able to recover anything against the airlines.” Both airlines immediately expressed gratitude for the judge’s decision.

While World Trade Center Properties has already received $4 billion through insurance claims, Silverstein and his company are seeking up to an additional $3.5 billion from the two airlines. In addition, the development company is seeking to collect $1.2 billion from an insurance company — money which developers claim is rightfully theirs from airlines and airport security companies. Attorneys for both airlines contend that the original $4 billion payment covers the “fair market value” of the twin towers.

A three-judge panel has been tasked with issuing a ruling on the appeal, which could take months to conclude.

The hearing is the second September 11 related event in court this week. On Tuesday, Bloomberg reports, the U.S. District Court approved a $135 million settlement from American Airlines to Cantor Fitzgerald LP. The firm argued that negligence on the airline’s part resulted in the death of 658 of its employees when American Flight 11 crashed into the World Trade Center North Tower.

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